Questions? » Contact An Analyst or M-F 9am -5pm PST Call 1-888-588-6451
You are viewing an article from the Fractional Residences category.
Related WestPac, the developer of the Base Village at Snowmass, requested to convert some whole ownership condominiums at the luxury project into fractional residences, and give the Village its first shared ownership options.
According to the Aspen Daily News, the developer wants to convert a building that was slated for 41 one- and two-bedroom whole ownership condominiums, into a collection of 15 two- and three-bedroom fractional residences sold in one-eighth slices. The developer made their case in front of the Snowmass Village Town Council, which must endorse any changes to the luxury residential development, origianally approved to include some 600 condominiums.
Some members of the Town Council have expressed concern that the shift to fractionals would lower the amount of lodging taxes that the town could collect. The hope was that the owners of the mostly one- and two-bedroom condominiums would rent them out to visitors as well, enabling the town to collect lodging taxes on those stays. However, Related WestPac insists that it would encourage fractional owners to put their shares into a rental pool—a strategy not typically touted by fractional developers.
If the expected lodging taxes fall short, the developer will pay the difference. Considering that, according to the Aspen Daily News, Related WestPac says that the price premium for a unit sold in fractions is 1.5 to 1.7 times the sales price for a comparable whole ownership unit, the developer likely won’t have any difficulty covering a tax shortfall. Viceroy,
which is building a hotel and residence project at the Village, would likely operate these fractionals.
For consumers, the move to fractionals in Snowmass means a potential new ownership option in the ski town. There are several brand name luxury developments with whole ownership options, including Viceroy and the Little Nell. If the addition of fractionals wins approval, the only question is whether buyers, who will likely only get a few prime ski weeks each year and may jostle for reservations during the most coveted weeks, will really want to sacrifice time on the slopes to renters.
Readers, weigh in. Is the option to rent out a fractional share something you’d consider?
Download our Decision Guide to Fractional Residences to learn more about buying a shared ownership property.
Reader Feedback
-
From: Clarence ScottWednesday, September, 10, 2008 at 04:14 AM
Hello there: We are private commercial lenders who help real estate developers in need of commercial financing. We have private commercial loans starting at $2 million dollars and up. If we can help with your needs, just let me know. Thanks,
-
From: quartershareSaturday, November, 15, 2008 at 03:31 PM
the ski season at most resorts is only 16 to 18 weeks, and really only 12 are prime weeks (late december to late march). i think a 1/4 share is really the only viable model that would offer a fair balance of rental inventory to space available use for members. there are just too many owners competing for too few prime weeks otherwise.
Free Decision Guide
Written by industry analysts.
Get the Guide Fractional ResidencesAdvertisement
Decision Tools
More From Halogen Guides
Travel
Real Estate Spotlight - Advertisement
From: Fractional FanTuesday, September, 09, 2008 at 10:12 AM
Typically the CCRs of a PRC prohibit rentals. Very bad for other owners and space available opportunities. The Snowmass city coucil should be happy they are even proceeding with the development with in this environment.