Shadowrock Townhomes: El Jebel, Basalt, Carbondale, Eagle County, Colorado

Basalt-El Jebel, Colorado:

Today, Erik Cavarra announces that a Development Group based out of Denver, Colorado will be closing on the stalled Shadowrock, Development in El Jebel, Colorado.

A project that has been an eye sore for some and a forgotten entity for others, Cavarra and the Group hope to finalize the Eagle County PUD that was filed in 2007 and deliver to the area a well priced, and highly over delivered finished product, that transitions smoothly into the increasing real estate market of the area.

With (2) developers failing during the rough economic market of 2007-2010, Cavarra believes that this time it will be different.  Looking at the initial buy in phasing for the first (2) development groups was the initial cause of alarm for the unseen futures.  Buying undeveloped land for $16.5m++, as an example, and then having to pay for the simple infastructure of the PUD along with the Cost to Build the actual Units only sunk the boat for the hopeful sales expectations that were in turmoil with market conditions.

Our view point however remains different. We are not paying inflated values of $16.5m as an entry in the market.  This fact alone will allow us to strategically bring to market a fortefied plan of delivered Units that the market can bare based upon recent sales activity within the neighborhood and surrounding areas.  We are not pressed to meet a “pro-forma” or timetable.  We plan to effectively bring to market a much improved product line with interior highlights not seen yet in the existing built Units, but with price points that will allow the target market to be very comfortable within the Mid-Valley Price Levels.

After a thorough review of the Market, we feel strongly that there is a need for property within the Basalt & El Jebel Areas.

As an example, over the last year, there have been (76) sales within the Basalt & El Jebel areas with a Price Point of $300k – $700k.  More specifically, there have been (28) sales within the El Jebel Area within the same price point, & (4) sales within the Shadowrock Development specifically.

Of the (4) Sales within the Shadowrock Development: Here’s an analysis of the Selling Price, Price Per Foot and other pertinent details.

Statistical Market Analysis

 

Any new inventory coming in the Willits Area is welcomed.  We feel that with the strengthening Real Estate Market, Absorption Rates, and NEW Commercial Infrastructure within the Willits area only leverages the Shadowrock Development.  Whole Foods, Starbucks, and a new array of Restaurants has placed the El Jebel area in a strong position for many years.

 

The Willits Market Lofts are an example of what we feel will be built within the next most near phasing of the Willits Town Center: (see attached & below)

 

Statistical Market Analysis

There is currently (1) Unit Pending Sale for $529,000 or $306.49 per foot.  Let me reference that again, a Two Bedroom is Under Contract for $529,000 or $306.49 per foot.

This is showing the strength for the El Jebel area.  As buyer, why wouldn’t you want to purchase a Brand NEW Unit with 2500 + square feet, verses a Two Bedroom Loft with only 1800 + square feet?

The strength evidenced within the neighborhood of Blue Lake also should be referenced. Granted, Blue Lake is a Single Family Community, but the product and age of the homes average built years in the 1980’s. Let’s first examine what has happened within their market over the last year:  4 out of 6 Homes are currently Under Contract or Pending with Price Points Ranging from $620k – $435k.  There have been (22) sales within the last year alone.

 

Statistical Market Analysis

 

The Shadowrock Buyer is two-fold:

• Working Class Family within the Aspen – Basalt Corridor: Age: Mid – late 30’s or 40’s within income levels of $150k+ per year.
• Investor/Retiree who loves the El Jebel Area.

Having sold Units already within the Area, there is without any doubt or hesitation that both of these Buying Types are present in today’s market.

We do not foresee competition in the “subsidized” housing program of Aspen or Snowmass.  Reasons: (1) there simply isn’t enough product. (2) No appreciation. (3) Usage restrictions. (4) Quality and Size of Living Restrictions.

If I was a buyer, and worked in Aspen and had the option to spend $450k for at 4 Bedroom Townhome in El Jebel, versus owning a $450k Affordable Housing Unit at the Season’s Four which has no garage, only 2-3 bedrooms, and 1,500 square feet, I can tell you that 70 out of 100 buyers would choose to Own Real Estate.  The RFTA Bus program, proximity within walking distance to City Market, Whole Foods and the vast array of the amenities present within the El Jebel area will Sustain the appropriate Phasing of the Shadowrock Townhomes.

Another example: The strength of the El Jebel Market, and Shadowrock community is evidenced with the amount of interest we have received thus far on the Units without having launched an initial marketing or sales program.