Rollingstone Village, off Pine Grove Road, is approved for 61 residential condominiums and seven commercial spaces. The owners are seeking a buyer with the financial patience to wait out the real estate slump.

Artist rendering courtesy Vertical Arts Architecture

Rollingstone Village, off Pine Grove Road, is approved for 61 residential condominiums and seven commercial spaces. The owners are seeking a buyer with the financial patience to wait out the real estate slump.

Kreissigs put Rollingstone back on market for $6.9M

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Kim and Peter Kreissig as K&K Builders have broken ground on new townhomes at Rocky Peak Village.

— Three months after winning city approvals for new condominiums at Rollingstone Village, Kim and Peter Kreissig have put the property off Pine Grove Road back on the market for $6.9 million. However, she says, it's nothing like a flip.

"I won't make any money off it at that price," Kim Kreissig said. "I've never been emotionally attached to a real estate project before, but this one really tugs at me."

Rollingstone Village would be built in a stand of trees along Fish Creek that is almost immediately behind the Safeway grocery store at U.S. Highway 40 and Pine Grove Road. Although the property is close to three large commercial centers between downtown and the ski mountain, it feels relatively secluded to visitors on foot.

The project as approved is planned for 61 condominiums and seven commercial spaces comprising more than 100,000 square feet. It also includes 33,000 square feet of open space.

The Kreissigs, who have successfully developed several condominium projects, as well as large homes, paid previous owner Jim Selbe $5.75 million for the property in 2007. They also have broken ground this spring on the first two buildings in a townhome project, Rocky Peak Village. Kim Kreissig is a Realtor with Prudential Steamboat Realty.

Peter's K&K Builders constructed the eight-unit Willowbrook and 16-unit Willows townhomes in the Chinook Lane neighborhood. Both sold out before completion between 2001 and 2004. The Kreissigs moved on to the Stonewood townhomes project in 2004.

Peter Kreissig said that given the state of the economy and the lag time before units at Rollingstone would be absorbed by the market, they no longer want to carry the debt. Instead, they hope to sell the entitled project to a developer who can afford to be patient.

"We have carried Rollingstone since 2007," Peter Kreissig said. "Given market conditions, we have no immediate plan to commence building. We can technically continue to carry the land, but with the market rebounding slowly, it just doesn't make good business sense for us to wait it out."

Along with the purchase of the land, the Kreissigs had invested heavily in the conceptual plans and the process of obtaining a development permit.

"We had every intention of building something wonderful for us and for the city of Steamboat Springs," Kim said. "We bought the parcel when the market was booming, and it was a big leap for us. The purchase itself, as well as our vision for the project, was larger than anything we'd ever undertaken."

In hindsight, Kim said, it might have been wise to leverage their risk by taking on an equity partner.

"The times were good, and we'd never teamed up with a partner before, so our thinking was, 'Why start now?'" she said.

The plan at Rollingstone would have preserved a historically significant home and detached garage.

Historical connection

Selbe's parents, Keith and Anne Selbe, moved to Steamboat Springs from Kansas in 1942. Keith's parents and grandparents had been ranchers in Kansas and preceded Keith, moving to Steamboat in the 1930s to escape the Dust Bowl.

Keith and Anne Selbe ran a dairy farm at Casey's Pond where Jim and his sister, Anita, grew up.

Keith Selbe was a familiar figure, clad in denim jacket and cowboy hat, in Steamboat until his death in August 1994. He was an avid horseman who trained sorrel quarter horses and drove around town in a Jeep CJ.

Comments

greenwash 4 years, 10 months ago

Ouch!!!!!Carrying 5.7 million on a project years away.Sounds like all the rest of them ..I.E. Atira,Timbers,Green Court,700,360,Wildhorse.

Wanna take bets on who goes down first??

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Fred Duckels 4 years, 10 months ago

Greenwash@ windle, You guys had better start rooting for these people. Since you probably don't take chances, your only hope is wealth redistribution. Being a spectator does not let you appreciate the rest of the world.

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Troutguy 4 years, 10 months ago

Fred,
Not sure why I need to root for someone who may lose some cash by speculating on the real estate market. And as far as I can tell, Wall Street took a few chances and look where that got us. I think I will stick to rooting for the Nuggets and the Rockies!!

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greenwash 4 years, 10 months ago

I root for smart people not greedy ones.

I do sympathize for guys like you Fred in these trying times.

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boathappy 4 years, 10 months ago

Greenwash - get your facts straight before spewing inaccuracies - "ie-all the rest of them..."??? If you are a local and care about the future of Steamboat, I agree with Fred, start rooting for these people. It is much more important to the community to see them succeed rather than fail.

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greenwash 4 years, 10 months ago

Not sure what im innaccurate about?How does $2,000 PSF sound for base area based on purchase pricing if these projects dont get out of ground SOON.

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Tubes 4 years, 10 months ago

boathappy, if you'll rememeber the article about the space station owners being cited and the ensuing commentary...someone referred to the filling station at 3rd and lincoln as the texaco station...and greenwash responded by saying something wisearse like, "it was a shell station, DUH!"

i'm pretty sure she's not local......

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Kim Kreissig 4 years, 10 months ago

Dear greenwash, windle, and other concerned parties,

Your interpretation of the information you have read has lead you to some erroneous conclusions. If you are honestly interested in the facts behind our sale of Rollingstone, please call me on my cell phone 846-4250. I'll happily share our financials with you and help you understand the numbers involved in bringing a project such as Rollingstone Village to fruition. I prefer your numbers over mine as mine show a clear cash loss: wow, if you can show me how I can make over $2MM on this sale per your above writing, I'd like to hire you for my team!

Contrary to other contentions, we are not greedy people: we are simply a smaller local development company attempting like everyone else to earn a living while building beautiful projects. Based on phone calls I have received this morning, I was prompted to check this blog. I can attest that those who actually know us, take offense at your suppositions Yes, we took a risk because that is the business we are in. We have employed a substantial number of local craftspeople and professionals since 1994 and now must ensure their continued employment by making this sound, go-forward business judgment.

Please know that I will not go back and forth with you on this blog. Essentially I don't admire avenues such as this whereby individuals can hide behind alias names and spread untruths as they see fit. For this reason, I am including my cell phone number for your convenience. If you do not call, I must conclude that you would rather throw darts than actually understand our position, the true numbers, and expand your knowledge of a business such as ours.

Sincerely, Kim Kreissig

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Martha D Young 4 years, 10 months ago

Thanks, Kim, for bringing a breath of fresh air to this site. It's reassuring to know that you and others dislike the low level to which some of the comments go.

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honestabe 4 years, 10 months ago

nice reply Kim, you get a lot of credit for your positive response.

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aichempty 4 years, 10 months ago

The applicable term is most likely, "Net Operating Loss."

It's not fun to have one of those, but it's a nice way to help offset the profits resulting from making better decisions on the next project.

There's a dislike in this town for people who can just spend money and live in paradise. Too bad. Some people make lots of money honestly and they deserve to spend it for their own pleasure if that's what they want to do.

I had the NOL without the subsequent profits to take advantage of it, but in the meantime I got to live in a great place and things have turned out okay. It could be a lot worse.

I don't post my name because it's unique and would expose other people to attention they don't want.

The Pilot staff has our names and anyone harmed by libelous posts can obtain them with a subpoena. Some people have nothing to lose if they lie, but some do, and it's important to know that there may be facts posted here than can be backed up with written or physical evidence if necessary.

As one who has spoken out publicly and received anonymous telephone threats on my life as a result of exposing truthful information, I've learned that a lot of people who might do something rash in the heat of the moment will think better of it and act sensibly, given the chance to calm down.

In my case, it was a guy who was working for cash as a landscaper/lawn maintenance man while trying to get a workmens comp judgment from a reputable local business. Assuming you deal with a better class of people in general, you probably have nothing to worry about. My relatives would rather not be stalked any more, so this is our compromise.

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greenwash 4 years, 10 months ago

Paranoa the destroya.......As I have said many times...Facts are facts.Spin it any way you want.Call me negative.Call me outsider whatever. The party is over for the developers and realtors in town.Sorry to break it to you people that live here in fantasy land. Im just calling it as I see it whether you agree with me or not is not important.I still love the Boat regardless.And I love all of you. See Im not all negative

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seeuski 4 years, 10 months ago

Foot in mouth disease is apparently on the rise.

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TWill 4 years, 10 months ago

The party isn't over. But the music has been turned down, the front door locked and there isn't much left in the keg.

Hopefully, it won't take too long to clean up after everyone...

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Tim Scannell 4 years, 10 months ago

Nice response Kim. Thank you for being willing to invest your capital and take risk rather then sit on the sidelines. You create jobs and long lasting legacies.

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Scott Wedel 4 years, 10 months ago

I think the party is over for now. Next comes getting over the hangover, dealing with the few people that got themselves into real problems, and we shouldn't expect a blow out party like that for a while. They'll be BBQs and enjoyable times, but what we just had was a Woodstock moment that should not be expected to happen again.

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aichempty 4 years, 10 months ago

Scott,

There is a miraculous tool available for people who incorporate and risk money in business. It's called "bankruptcy."

When incorporated developers fail, they walk away debt free, with their personal assets intact.

That doesn't mean that they haven't lost their own money. It just means they don't lose all of their own money paying corporate debts. The people who lend money to corporations take the risk, and lose, when corporations fail. This is why venture capitalists exist; to gamble on unsecured investments.

I took a business risk as a sole proprietor and was literally wiped out as a result. I thought that being honest and working hard would pay off. Not around here, it doesn't.

Commercial property landlords play a complex game of buying, selling, leasing, depreciating and generally maximizing the return from their investments. They don't pause for a second to worry about the welfare of their tenants if there's a profit to be made within the bounds of their contracts. In my case, despite a non-competition clause that protected my fellow tenants in the same complex, my landlord sold a parcel of property less than 1/4 mile away, located between my business and US 40, to a direct competitor (a national chain). I lost 50% of my business overnight to a competitor who sold inferior goods as a sideline, for lower prices, that directly competed with my main business. So, that's life, and now I'm smarter, and you know what? Warning other people has made no difference. I've got friends today who lost more than me and are still paying for it even after I warned them about what can happen. It's just a fact of life in business.

Have you ever wondered why commercial buildings seem to be torn down around 20 years of age? It's because there's no longer anything to depreciate. It's a better tactic tax-wise to tear down the old one, build a new one, and then do it again in 20 years or so. It's cheaper than paying taxes on the money you're making from the old building.

When people go into business, they take a risk. Risk sometimes leads to loss and failure, and it's a cost of doing business. When you are operating a business that depends on income at the margin of society, bad times bring disaster and that's how it goes. When I first moved to town, there was a multi-story condo on Mt. Werner Rd that went unfinished for years because of the previous bust in the economy in the 80s. Today it's sold out and doing fine.

Some day, the people who come out on top of the current business decline will once again roll barrels of money into town to buy up our property because we live in a beautiful place with a world-class ski hill.

At least we don't have to worry about tsunamis. On the other hand, there's the Yellowstone "super volcano." We all have to weigh the risks.

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Scott Wedel 4 years, 10 months ago

Yes, there is bankruptcy. But the property itself can be tied up for years due to numerous liens. The bank may foreclose on the property, but the property may have so many liens that the cost of clean title and is way too much for anyone else to take over the development.

That partially finished complex (Eagle Point or something like that) along Mt Werner Circle that sat unfinished for about a decade? That is what I meant by having to recover from a hangover. I was told there were a ton of liens filed against it as well as work completed for which it was unclear had been completely paid for (so maybe more liens could be filed once that contractor saw other liens being paid). And so it took far longer to restart and complete the project than simple market conditions.

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