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People in the Vail Valley real estate business have wondered for a year what it's going to take to re-invigorate the local market. The answer, at least for one project is straight from Retail 101: Have a sale.
East West Partners, the developer of the Westin Riverfront Resort & Spa, recently cut prices by up to 40 percent on condos at the project. The result? More than 25 contracts signed in about a week.
For a little perspective, 106 real estate deals closed in Eagle County in October, so 25 contracts in a week is a big deal, indeed. And, while ads have recently hit local newspapers, the first big wave of buyer came through the local brokers' network.
“We announced it last Tuesday to brokers,” said Tom Vucich, Slifer Smith & Frampton's lead broker at the Westin. “We've been very busy on the sales side. Everybody's looking for good value these days.”
Vucich said that sales at the Westin had languished since 2008, with about 75 units of the 210 built still on the market. Those condos needed to be sold, hence the big sale.
“This isn't the first time we've gone through a recession,” said Chuck Madison, one of the partners in East West Partners. “We knew that when consumer confidence starts to come back you can sell. We felt it was better to lower the prices and reduce excess inventory.”
The idea, Madison said, is to try to engineer a sales recovery that looks like a “U” on a chart, instead of an elongated “U,” or, heaven forbid, an “L.”
And, while some current owners may do a forehead-slap when they learn what new buyers are paying, Madison said getting units sold is better for everyone in the long run. More owners help the existing restaurant, spa and other amenities by putting more people into the project. Getting more people there now can keep the extras running until the rest of the project is complete.
“The hotel is sized to accommodate the entire project,” Madison said. “And we still have three major buildings yet to build.”
Madison said the design work on the remaining condo buildings will probably start in 2010, with an eye toward starting construction in 2011.
For now, though, there are roughly 50 units left to sell at the Westin.
“I'm not sure how long (the sale) will last,” Vucich said. “But people are very interested right now.”
Business Editor Scott N. Miller can be reached at 970-748-2930 or smiller@vaildaily.com.
East West Partners, the developer of the Westin Riverfront Resort & Spa, recently cut prices by up to 40 percent on condos at the project. The result? More than 25 contracts signed in about a week.
For a little perspective, 106 real estate deals closed in Eagle County in October, so 25 contracts in a week is a big deal, indeed. And, while ads have recently hit local newspapers, the first big wave of buyer came through the local brokers' network.
“We announced it last Tuesday to brokers,” said Tom Vucich, Slifer Smith & Frampton's lead broker at the Westin. “We've been very busy on the sales side. Everybody's looking for good value these days.”
Vucich said that sales at the Westin had languished since 2008, with about 75 units of the 210 built still on the market. Those condos needed to be sold, hence the big sale.
“This isn't the first time we've gone through a recession,” said Chuck Madison, one of the partners in East West Partners. “We knew that when consumer confidence starts to come back you can sell. We felt it was better to lower the prices and reduce excess inventory.”
The idea, Madison said, is to try to engineer a sales recovery that looks like a “U” on a chart, instead of an elongated “U,” or, heaven forbid, an “L.”
And, while some current owners may do a forehead-slap when they learn what new buyers are paying, Madison said getting units sold is better for everyone in the long run. More owners help the existing restaurant, spa and other amenities by putting more people into the project. Getting more people there now can keep the extras running until the rest of the project is complete.
“The hotel is sized to accommodate the entire project,” Madison said. “And we still have three major buildings yet to build.”
Madison said the design work on the remaining condo buildings will probably start in 2010, with an eye toward starting construction in 2011.
For now, though, there are roughly 50 units left to sell at the Westin.
“I'm not sure how long (the sale) will last,” Vucich said. “But people are very interested right now.”
Business Editor Scott N. Miller can be reached at 970-748-2930 or smiller@vaildaily.com.
