Jan 13 2012
Aspen Highlands Real Estate Update
Situated at the base of Aspen Highlands ski area and just three miles from downtown Aspen is Aspen Highland’s Village. In addition to serving as the base area of one of America’s great ski mountains, Aspen Highlands Village serves as a gateway to the scenic White River and Gunnison National Forest, and the spectacular Maroon Bells and Maroon Lake destination. The redevelopment of the base of Aspen Highlands into the current Aspen Highlands Village began in the late nineties. After a challenging approval process, the final development plan included lots for 32 luxury townhomes, 31 ski-in/ski-out single family homes and a core area that included about 60,000 square feet of commercial space, 112 units of affordable housing and about 73 fractional hotel/condominium units.
Although the residential and fractional portion of Highlands Village have been quite successful, the commercial segment has been challenging for investors. Envisioned originally as a vibrant commercial retail core of shops and restaurants, the current commercial village is a mix of seasonal retailers, galleries, restaurants and service providers along with a significant number of professional offices for attorneys and investment firms. Over the years, various retailers and restaurants have been unable to survive primarily due to the lack of sustained foot traffic most likely caused by the lack of residential and commercial density require to create the necessary retail foot traffic. Currently, rents are around $15 per square foot net of all expenses which makes Aspen Highlands Village one of the more attractively priced commercial submarkets in the Aspen area.
In contrast to the commercial space, the free market residential component of Aspen Highlands Village has been popular with buyers over the years. During the peak real estate market years of 2006 through 2008, newer homes and townhomes around the base of Highlands routinely sold for prices ranging from $1,000 to a high of about $1,500 per square foot. However, since 2008, home values in the Highlands area have fallen anywhere from 25% to 35%. In the past twenty-four months, six townhomes and five single family homes have sold. The townhomes ranged in price from $3.2 million to $4.3 million with per square foot prices ranging from a low of $647 per square foot to a high of $841 per square foot. Single family homes have sold for prices ranging from $4.0 million to as high as $14.0 million, with per square foot prices ranging primarily from about $664 per square foot to a high of $874 per square foot. One exception was the sale of a newer, fully furnished 8,500 square foot house on Thunderbowl Lane that sold in May 2011 for over $1,600 per square foot.
Currently, there are four townhomes and six single family homes on the market at the base of Highlands. The townhomes consisting of five and six bedroom units range in asking price from $3.5 million to $5.7 million with per square prices ranging from $747 to $918. Of the six single family homes for sale, four are newer ski-in/ski-out properties ranging in size from about 7,000 square feet to 9,300 square feet and priced from $8.9 million to $16 million, with per square foot prices ranging from $1,290 to $1,658. The current listings of townhomes and single family homes are listed for sale at prices significantly above the prices of recent sales in the past year. With great natural amenities, residential buyers and commercial tenants may want to look closely at the real estate opportunities at the Aspen Highlands Village.
William Small, JD, CCIM is managing director of Frias Luxury Estates, a division of Frias Properties of Aspen that specializes in marketing luxury Aspen properties. If you are interested in receiving his monthly market report, you can reach him at (970) 429-2419 or email him at bill@friasproperties.com.