The Killington Buyout Will Take the "A" Out of Killington!
Killington Resort Sale
Attn: Skiers & Real Estate Investors -
Get ready for the transformation of Killington from the "Beast of the East" to the "Best of the East"www.skidixie.com/thenewkillington Please feel free to link to this article URL to read or link to from your website.
The announced sale yesterday of Killington & Pico Ski Resorts to SP Land Company LLC should begin the rebirth of "cash starved" Killington Ski Resort back to the status and potential the resort deserves. More important for the purposes of this article, existing property owners and new real estate investors in the Killington area could be in for a pleasant surprise regarding property appreciation at a time when many mountain resorts are finding property values falling after quite a few years of stellar returns and explosive buyer demand from the past record low interest rates.
For years, Killington was known for the longest ski season, the longest trail, the most ski terrain in the East and great nightlife. It was also crowded on weekends, not particularly family oriented and even with the shuttle system, you really needed a car to get around. Killington has become rather ratty and rundown over the last few years as it has been cash starved due to the debt load of ASC. Still for trail variety and terrain it truly has been the "Beast of the East" but now this will change over the next few years to the "Best in the East" and it could even rival or surpass Intrawest's Mont Tremblant up in Quebec due to accessibility, snow conditions and Vermont charm.
The Snowshoe Mountain Experience - As a former property owner, I'm very familiar with what happened at Snowshoe Resort in West Virginia when Intrawest purchased the resort. For the South, Snowshoe also had rundown facilities, great slopes, an excellent snow record and a dumpy ugly 1970's style village that looked like it had been picked up and moved in a time warp from the rundown condomania of South Lake Tahoe to the mountains of West Virginia. First, on the downside, since 1995 there has been almost no trail expansion at Snowshoe but the ski mountain and overall resort experience have been really upgraded and enhanced with many new restaurants, bars and mountain amenities and activities. During this time, existing condo prices have appreciated by 200% to 300% during the period. For example, dumpy little one bedroom condos at Top of the World have gone from the lower $40's to now priced almost $110,000 each. The new condo developments are very expensive relative to the older properties but with the village atmosphere and mountain amenities, they have been selling like hotcakes. We ski often at Snowshoe, www.snowshoemtn.com and I consider it the best ski resort south of Vermont and New Hampshire.
Killington Can Expect the Same Scenario Unless the Economy Tanks - It appears that SP Land Company will partner with POWDR Resorts, the owner of six western ski areas, including Park City Mountain Resort in Utah, Mt Bachelor in Oregon, Alpine Meadows, Soda Springs and Boral in the Lake Tahoe area of California and the Las Vegas Ski and Snowboard Resort to manage and develop Killington to it's fullest potential. Now of course I've heard that although POWDR is very successful at running ski resorts, it's focus is not real estate development and this is correct. This side of the equation is SP Land Co., which is based in Texas, has a majority stake in 213 acres at the Killington base area and another 256 acres at the resort's Bear Mountain area which are two of the three main areas for village development, the other is Pico.
I believe we can expect improved snowmaking capacity, the replacement of aging lifts and some minor location changes in a few slopes and lift system, the lodges will be renovated, a longer ski season but probably not the PR events of a few years ago, and finally a major improvement in Killington's management process and image. The often discussed Killington/Pico connection may or may not happen in the near term as this will cost a lot of money without a corresponding return unless they have a new real estate vision for Pico.
For those of you interested in future Killington real estate, there are three possible village locations. If you remember, back in July of 2006, Texas based Centex Destination Properties pulled out of a plan to develop a village with 1,400 vacation homes and condos near the Killington Base area. This was probably a function of rising interest rates, a softening home market and concerns about the future of ASC. Frankly, 2006 was not the time for experienced real estate investors to buy and develop a major real estate project as demand was falling and interest rates continued to rise. Centex wisely decide to go with a far smaller mountain village concept at Loon Mountain over in New Hampshire this will be a success.
A Marriage Made in Heaven - Now I believe a Killington Ski Village which has been part of their master plan for 20 years will finally become a reality with POWDR's management of the mountain and SP Land Company LLC and related entities including E2M Partners, etc. tremendous experience in real estate development. They will probably put the village at the Killington base area and if you want to see what could happen at Killington, then visit Whistler, Snowshoe or Stratton but there are two other exciting considerations.
First, they could eventually create two village areas with the other at Bear Mountain where the trail layout would actually allow for an all inclusive private ski country club concept for affluent members and real estate investors with public slopes still below the village and above to Sunrise. See the nearby Bear Creek Mountain Club www.bearcreekclub.com or the new Haystack Club in southern Vermont www.haystackclub.com for how this could work. Killington is large enough for an improved existing resort market and the private club concept.
Second, Pico could also be developed as another satellite ski village and here the long awaited interconnect would allow village to village skiing as in much of Europe, from Pico to the base village, to Bear and finally to Sunrise. Now this would be an exciting ski, marketing and real estate concept that would allow Killington to rival many of the western and European resorts. But then again, maybe this is wishful thinking on my part.
We Know What Can Go Right But What Can Go Wrong? - All mountain resort buyouts are not positive for existing home and lot owners. Being able to raise money for a down payment to buy a mountain resort doesn't mean the new owners have the necessary funding or resort development experience to follow through with their plans. In this case, SP Land Company and E2M Partners certainly have the professional real estate development experience and the money to make the new Killington Village or villages a reality. Also POWDR has the experience and reputation with it's other resorts to assure us a quality, improved snow play experience.
Second, resort buyouts are sometimes highly leveraged operations that places additional financial strains on the resort as was the case with ASC and several other examples I'm familiar with. Buyers can also "buy at the top of the market" and pay too much for the resort or development property making the development prices too expensive for the target market especially in a time of weakening real estate values in many areas of the United States. Finally, a new resort owner can attempt to exclude earlier property owners from the new property and amenities thus limiting the expansion and resort experience to existing property owners. This is currently happening in Utah at the former Elk Meadows Ski Resort. I do not see any of the above problems developing at Killington.
It's Time To Visit Killington Resort Again - Killington will always be mostly a drive to market from NYC, Boston and points south but the village development, fantastic ski terrain and an improved image and snow play alternatives will allow Killington to again become the leader in eastern skiing. Here at Ski Dixie, we urge our Southern and Eastern readers to take a drive up to Killington and size up the fun and real estate potential if the resort were developed as we have discussed. If you agree with us, get ready for some fun, great ski experiences and real estate opportunities at the new Killington, soon to become the "Best of the East". Also check out Killington Resort www.killington.com E2M Partners www.e2mpartners.com, KillingtonBlog www.killingtonblog.com
and POWDR resorts www.parkcitymountain.com/winter/company/POWDR_Resorts/index.htmlAs for me, I'm heading up for an already planned week of great skiing at the old Killington in early March but I will be doing my due diligence and will report back on what we find on our now "tax deductible" trip in a follow-up article here at Ski Dixie. Note, everything here is conjecture on my part as I haven't talked to anyone in the private companies involved in the buyout of Killington.
More later,
Ron Holland, Editor
Ski Dixie www.skidixie.com Ron is a skier and mountain lover who sells and markets ski and mountain property in the beautiful mountains of western North Carolina.
Ronald Holland is editor of this website and a broker/realtor with
Wolf's Crossing Realty. For questions, comments or
lot listings in Wolf Laurel, please use this E-MAIL INFORMATION REQUEST
or call toll-free 800-541-1738 or after hours at 828-689-2148More of our websites about Asheville, Wolf Laurel & our high mountain area.
Wolf Top News - News. links and headlines about the Preserve and Wolf Laurel Resort.
Asheville's Big Bald Highlands - Provides info on all mountain resorts in Wolf Laurel area.
Ski Dixie - Travel, resort and real estate news for Southern skiers.
Holland World Seminars & Travel - Luxury travel and conference planning for affluent travelers.
Move To Asheville - Info on why Asheville is a major tourist destination & 2nd home market.
Golf Asheville - Asheville is truly a golfing paradise with 19 courses around the city.
Ski Asheville - Learn more about the 8 ski resorts within 90 miles of Asheville.
The Mountain High Club - For mountain lovers who want the best in mountain experiences.
Asheville High Country - (Under development) with info only on Asheville area mountains.
RonaldHolland.com - More about the Holland's & their marketing & business activities.
Ray's Weather Station & Forecast For Wolf Laurel - A weather station at our 4,500 ft elevation.
Ron's Web Cam - See the real time weather, views and conditions here.
Please click the graphic at the left to receive a free photo tour DVD featuring highlights of the seasons of Wolf Laurel and the Western NC area provided by Wolf's Crossing Realty & a listing of resale mountain lots at Wolf Laurel where prices begin at under $25,000 per lot.
Take the Wolf Grand Tour in 2007! - A fun, relaxed, no pressure alternative to see the broad range of of real estate opportunities, homes and lots in Wolf Laurel, Wolf Ridge Ski Resort, Breakaway Village, the Peaks at Wolf Ridge, the Haw Ridge Summit airport community and the Preserve at Wolf Laurel including Buck Town, Steeplechase and The Ridges.. What could be better than a brief private tour of all the resorts together followed by wine or sparking grape juice and cheese on a mountain top with long-range views that seem to go on forever? We are only 35 minutes from exciting Asheville, NC recently named by Frommer's, the most respected name in travel writing as one of the top 12 destinations in the world for 2007.
Do Your Own Due Diligence! - No sales pressure, just balanced information as we drive you and your family through the different communities answering your questions on prices, views, winter access, climate and lifestyle as we highlight the unique advantages, differences & amenities of each resort in a fair and balanced manner as we do not represent any particular resort or development. CLICK HERE for more information and to schedule your complimentary private Grand Tour of our resort area.
