On the Market
Tom Ross' On the Market column appears Sundays in the Real Estate section of the Steamboat Pilot & Today. Contact him at 871-4205 or e-mail tross@SteamboatToday.com
Green Courte Partners, developer of Howelsen Place and Alpen Glow in downtown Steamboat Springs, reported in September that it had finalized its third investment fund with commitments of $406.9 million.
Company officials wrote in a statement that they expect to use the money committed to the fund to leverage investments in about $1.2 billion of niche real estate, including land-lease communities and parking assets.
In 2011, Green Courte has focused on acquiring existing age-restricted residential communities where older adults purchase a modern home but pay rent on the lot.
Green Courte Managing Director Mark Scully, based in Steamboat, said company Chairman Randall Rowe, who also has a home in Steamboat, is focused on high-end communities that typically have an amenity like a golf course, marina or clubhouse.
“We are honored that almost all of our investors in the prior two funds have decided to invest in GCREP III,” Rowe said in a prepared statement. "We are also pleased to have several new institutional investors join us.”
Scully said it’s a testament to Rowe’s track record that he was able to raise the investments in the third fund, given the tough economic climate.
Scully agreed that investments in completed age-restricted communities clearly mesh with the growing number of retiring baby boomers. He said lot leases in communities managed by Green Courte subsidiary American Land Lease typically are for a duration of one year, allowing for leases to be adjusted annually for inflation.
In January, Green Courte purchased six land-lease communities in Florida comprising 1,850 home sites, all of them rented. That purchase completed acquisitions in Green Courte’s second fund.
Anticipating the closing of its third fund, Green Courte picked up a smaller, four-star age-restricted community in the Buffalo, N.Y., suburb of Cheektowaga. The 156 manufactured homes in Parkside Village are occupied. In addition to Parkside, Green Courte owns 638 home sites about seven miles away in Sky Harbor.