Steamboat Springs The Porches luxury duplex neighborhood near the base of Mount Werner is poised to grow.
Co-developer Bruce Shugart has confirmed that he and his partners acquired the undeveloped Montenero project for $2.8 million. It is on 3 acres immediately across Rockies Way from the southern end of The Porches and had just broken ground when it sold in July. The Montenero was previously approved for seven duplexes and one triplex.
Shugart said he had made earlier inquiries into acquiring the 3 acres, but when he saw the Montenero developers breaking ground, it galvanized his thinking, and he approached them with an offer.
The Porches has been under development since late 2003, but Shugart says the original project is still on pace, though it is less than half completed. The construction process is more akin to building high-end single-family homes than building townhomes or condominiums and construction of each duplex can take 16 to 18 months.
Company literature confirms that in January 2004, the developers anticipated a four-year build-out. Of the approved 32 duplex buildings (64 units), 14 have been built, and 18 remain to be built. Documents on file at the Routt County Clerk and Recorder's Office confirm that a dozen whole ownership residences have been purchased at prices ranging from $1.2 million to $1.85 million. Shugart said two more of the homes are under contract in the $2.2 million to $2.3 million range, with closing dates pending.
The Montenero property represents the opportunity to deliver more product in the future, though modifying the approved buildings to make them consistent with The Porches would necessitate going back through the city planning process.
Shugart and Porches co-developer Shane Evans are longtime business partners in Structural Associates. He said they have a track record of building custom homes in the Aspen, Glenwood Springs and Vail areas.
The third partner in The Porches, Richard Dean, is the CEO of Colorado-based Ashcroft Homes.
Shugart acknowledges sales of one-eighth share interval ownerships have not lived up to the development team's expectations. Yet, he said, they remain committed to them.
As well as being fundamental to the business plan, he said they continue to think that The Porches' "Private Residence Club" will be an important part of the product mix in the next several years.
"We think the market will arrive," Shugart said. "We, as owners, have been involved with fractional. It makes sense."
When they were first being marketed, whole ownership duplex units at The Porches, which range from about 4,000 to 5,000 square feet and include four or five bedrooms, were sold from about $1.6 million to $1.7 million.
Shugart readily acknowledges the local real estate community thought the developers were stretching the market, particularly given the location on Steamboat Boulevard just down the hill from the Steamboat Grand Resort Hotel.
Shugart thinks the concept of a luxury neighborhood within an easy shuttle of the ski lifts has proven successful. The fact that Wildhorse Meadows has broken ground across Mount Werner Road offers even more validation of his convictions, he said. And he thinks his project's ability to offer a quiet neighborhood gives it a special niche in the market.
Today, prices for whole ownership of a duplex unit range from $2.2 million to $2.6 million.
Shugart said the partnership has deliberately kept the Residence Club ownership levels close to 2004 prices as an incentive. There are 224 shares available for prices ranging from $320,000 to $400,000. Interval ownership prices include luxurious furnishing, as well as a full kitchen package.
Interval owners also can visit other vacation destinations through The Registry Collection.
Shugart thinks that when many buyers look at the price of homes in Steamboat and consider the portion of the year they intend to spend in Steamboat, the Residence Club would make sense. Eighth-shares entitle owners to six weeks in residence plus the ability to claim more nights on a space-available basis. That opportunity has appealed to buyers from the Front Range and southern Wyoming, Shugart said.
Services at The Porches include concierge, pre-arrival grocery shopping, airport transportation and on-site management.
Owners enjoy use of a community building evoking a Western barn. It offers an all-season swimming pool, children's game room, business center, game room, fitness center and barbecue decks.
Sales are being handled internally. Contact the sales center at (866) 500-6673.