Steamboat house for sale after $400K in improvements
Developer hopes to flip 8,754-square-foot foreclosure home
June 6, 2010
Steamboat Springs — Steamboat developer Charlie Sher and Realtor Ron Wendler say they've found an opportunity to reinvest more than $400,000 in a foreclosed 8,754-square-foot home and offer it for sale at 40 percent less than comparable properties at the mountain.
The white stucco house at 2476 Ridge Road occupies a nearly level 0.65 acres on a south-facing ridge that looks straight into the ski slopes from the north side of Burgess Creek Road. The 20-foot-tall living room windows take in the Sitz, Vogue and Voo Doo trails. From the upstairs master, the view is of Pioneer Ridge.
Wendler has listed it for sale for $2.56 million, the equivalent of $292.55 per square foot. He is with Colorado Group Realty.
"It probably should be a $3 (million) to $4 million home," he said. "Charlie saw a great opportunity here and invested more than $400,000 in improvements."
What makes the Ridge Road neighborhood stand out from even some ski-in, ski-out properties, Wendler said, is quick access by car to the bottom of the Thunderhead Express chairlift via Burgess Creek Road. The lift's lower terminal functions like a semi-private base area when it opens on a powder morning, he said.
Wendler added that a significant amount of the improvements Sher undertook were attributable to fixing quirky aspects of the original floor plan — walls were removed and added, and the same was true about the bathrooms. A staircase was added to the lower level where an unfinished basement was upgraded to include a theater.
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The general contractor was Vic Pappas, of Pappas Builders.
All of the original flooring was Mediterranean-style tile, which was replaced by wide-plank hardwood and baseboards.
Sher, who is based in Solano Beach, Calif., visits Steamboat as often as once a month, Wendler said. He was the successful developer of Sundance Creek condominiums and the Loggers Lane commercial center. Records at the Routt County Assessor's Office show that Sher, through his company, Sundance Creek Ventures, bought the Ridge Road house out of foreclosure from J.P. Morgan Chase Bank in November 2009 for $1.19 million.
The house was not originally built as a spec house, but as the owner's custom home. The assessor's records do not reflect any previous sale prices.
Wendler said Sher was attracted to the property because of its singular location and the opportunity to upgrade it and still make a profit with aggressive pricing.
After surveying other mountain homes, Wendler said, they agreed that many had been discounted 10 to 15 percent and still needed to be cut another 10 to 15 percent to reach the market.
"We looked at comps everywhere around the mountain, and we figured we needed to stay well below the marketplace to turn it fast," Wendler said. "We wanted to be 40 percent lower in order to stay ahead of the market."
He held an open house in March, he said, that turned up several interested parties, but things have been quiet during mud season. He's optimistic that buyers will come back in the middle of June.
Sher always keeps a lookout for opportunities, Wendler said, but also has a large home on Heavenly View in the Sanctuary that is listed for $3.5 million, and he would like to sell one of the two homes before taking on another project.