Market Information

Teluride Commercial Real Estate Update

 

Here is the Commercial Real Estate update for Telluride, Colorado as of September, 2019

Source: Telluride Real Estate Brokers 

Whole Building Sales: 

The Bell Building, 217 West Colorado, sold 6/1/2018 for $2,995,000 MLS #32563 

The Pederson Building, 398 West Colorado, sold 10/5/2018 for $7,440,000 MLS #35732 

The Bank Building, 109 West Colorado, sold 11/15/2018 for $2,450,000 MLS #35785– TREB Sale 

Plunge Landing Building, 290 S Townsend, sold 2/26/2019 for $5,700,000 MLS #37427 

221 South Oak, sold 7/17/2019 for $3,850,000 MLS #36908 

Commercial Condominium Sales: 

221 East Colorado Ave Wasatch II #J, sold 12/13/2018 for $1,035,000 MLS#35515– TREB Sale 

Art House Corner of Fir and Pacific, sold a second time in 2 years on 1/15/2019 for $980,000 MLS #36750 

217 East Colorado Ave Wasatch II E &F, sold 5/14/2019 for $2,327,500 MLS # 36496 

Pacific House, 124 East Pacific, sold 5/31/2019 for $735,000 MLS #35759 

The Following Office Spaces Sold: 

New San Juan Office suites 204, 220 East Colorado Ave. sold 11/30/2018 for $90,000 MLS #36369– TREB Sale 

Black Bear Unit 202, 101 East Colorado, sold 3/8/2019 for $570,000 MLS# 36861 

Availability in the commercial sector is still very slim and limited. 

Current Whole Structure Commercial Properties Listed Include: 

Fly Fishing Store, 121 West Colorado, Asking price $3,400,000 MLS #37309. This includes a full HARC approved set of redevelopment plans– TREB Listing 

The Dahl Haus, 122 South Oak Street, Asking price $3,000,000 MLS #37105– TREB Listing 

121 North Pine Street Storage/Residential, Asking price $3,000,000 MLS #34234 

115 West Colorado, back to the market at Asking price $4,750,000 MLS # 37459 

Commercial Spaces Listed Include: 

New San Juan Office suites 201 & 202, 220 East Colorado Ave. Asking Price $215,000 MLS #3691– TREB Listing 

214 East Colorado, Asking price $869,000 MLS #36843 

Dakota Space, 220 East Colorado, Asking price $1,725,000 MLS #36984 For Real Estate. Asking price $1,850,000 MLS #36890 For Real Estate and business. 

Under Contract: 

Butcher and Baker Building, 201 East Colorado, Asking price $3,500,000 MLS #37108 

TBD S FIR STREET 2 Fir House Commercial 1, Asking price $1,010,000 MLS #33926 

TBD S FIR STREET 2 Fir House Commercial 2, Asking price $1,425,000 MLS #33928 

Recently Expired/Withdrawn Properties: 

115 West Colorado , Asking price $4,400,000 MLS #35263– This has returned to the market at $4,750,000 MLS # 37459 

373 West Colorado Unit 5, Asking price $999,000 MLS #36611 

A Few Notable Changes in Business Moves and Startups: 

The Last Dollar Saloon and the new National Restaurant behind the Last Dollar are open. 

The Town of Telluride is completing the construction of the building on south Fir and Pacific on what Is locally known as the S.M.P.A. lot. This building contains underground parking, The Ah- Haa School for the Arts and Affordable Housing. 

The Merriweather four corners project is moving along, one building on the corner of Fir and Pacific is complete. The Transfer warehouse received a facelift and has been conveyed to Telluride Arts, and the main building to the south of the Transfer warehouse is being finished. 

The Pederson building on Colorado Ave. on the corner of south Aspen is approaching completion. 

The Old Belmont and Shanghai buildings are undergoing a significant restoration and renovation. 

Oxbow Leather has moved to 217 East Colorado Ave. 

The Hotel Ajax site has been sold and new plans are expected soon.

Telluride Real Estate Spotlight - Aldasoro Ranch

Aldasoro Ranch is a 1550-acre parcel developed in the late 1980’s, carved from a beautiful area of the extensive sheep ranch and farm owned by Joaquin and Serapio Aldasoro, industrious brothers who came from the Basque Pyrenees of Spain in 1926.

The development is linked to the Telluride spur from the same county road that accesses the Telluride Airport. A drive from any home in Aldasoro is less than 15 minutes to Downtown Telluride, Ski Resort or Golf Course.

For owners and their guests, catch and release fishing in the pond is allowed and Mountain Biking or Hiking on a well developed trail system links to the greater area town and wilderness trail systems.

In 2008 The Ranch changed hands from the Aldasoro family’s development company to the Aldasoro Ranch Homeowners Company, which now provides water, oversees building projects and maintains the roads.

Today Aldasoro has 166 single-family lots, a mixture of high-end custom homes and a few deed-restricted properties, as well as 620 acres of open space, covered in aspen, scrub oak, prairie grass and flowers. Every lot has magnificent views of the San Juan Mountains and the surrounding area. Click Here for Properties for sale in Aldasoro Ranch! 

Telluride Real Estate Market Stats for July 2019

Highlights as of today in Telluride and Mountain Village Real Estate: 

  • Number of sales are behind last year in all segments on my report
  • Large dollar land sales in Telluride and Mountain Village skewing 2019 price/acre upward
  • Telluride Listed Homes are now nearly double price/ft than Mountain Village Homes and less than half the average size listed  
  • Please contact me for more information

Telluride Real Estate Market Narrative Q1 2019

External factors well beyond our boutique regional market (volatile equities, China trade concerns,
national political gridlock, etc.) have imposed some uncertainty in the minds of some of those seeking
the sanctuary of a second home mountain investment. On the other hand, there are still those that
place family lifestyle and a solid real estate investment a notch above a “zip lock” on paper liquidity.

The first quarter of 2019 yielded a 4% increase in gross dollar sales ($114.8M vs. $110.3M) over that
same period of 2018, despite that quarter riding the “coat tails” of the new tax law and a burgeoning
economy. In fact, March sales demonstrated a 16% increase in gross dollar sales over the prior
March, suggesting that momentum is on an upswing. Overall, transactional numbers are almost
exactly the same quarter to quarter. Sales in the Town of Telluride ($48.1M vs. $37.8M) continue to
demonstrate strength with an increase of 27% (Gross Dollars). Although Telluride Mountain Village
condominium sales remained stable with $27.2M in sales, the lack of sales of single-family homes
was a factor in that market’s decline of 20%. The balance of the Telluride Region received renewed
investor focus with a 32% increase (Gross Dollars --- $22.37M vs. $16.9M).

It is certainly noteworthy that, looking back March to March over a two-year period, sales on the
upper end of the pricing spectrum in the Town of Telluride homes (above $1000 PSF) are holding
value with 18 sales during each of those periods at nearly identical average PSF’s in excess of $1200.
The sale of Telluride condominiums experienced almost identical results for these time periods with
12 sales each at an average PSF of $1172. This would certainly lead one to believe that values are
stable, and with several condo projects under construction garnering higher contracted prices, values
could very well be on the rise.

2019 Telluride Real Estate Market Update

The 2018/2019 Telluride real estate market continues to roll. We are still seeing great values in Mountain Village and the occasional hot deal in the Town of Telluride. The surrounding Mesa's and Ranches saw increased demand and pricing pressure as well. 

  • YTD Transactions Down 19%

  • YTD Dollar Volume Down 13%

  • Data Excludes Deed Restricted and Fractional Properties 

  • Smaller more affordable inventory have sold leaving larger more expensive properties for sale in general

  • I Update and Distribute This Report Quarterly - Please Contact Me with Questions

Local, State and National Politics Affecting Telluride Real Estate

Affordable Housing Proposals see Mixed Results on Election Day.

Three issues specifically facing voters in Telluride on Election Day saw mixed results. The hotly debated proposals for a property tax increase for Affordable Housing seem to have passed by the narrowest of margins. Measure 2A, which levies a 2 mil increase on Telluride residential properties seems to have passed by about 32 votes. 2C, which requires voter approval to bond the money collected passed by a slightly larger margin. One affordable housing measure that did not pass was measure 2B, which proposed a sales tax increase and would have likely raised more money for affordable housing than the property tax measure.

The Telluride Association of REALTORS® will continue to monitor new developments in the affordable housing discussion and will always be an advocate for housing for all.

Property Tax Proposals Pass in Telluride, other Local Areas

In addition to the ballot questions regarding affordable housing, a number of different property tax proposals that raised money for specific needs/purposes all received approval from area voters.

Voters said yes to property tax hikes requested on this election’s ballots that will help support the fire, school and hospital districts. Each of those measures passed with convincing margins, ensuring that voter approved funding will be in place to compensate for funding shortfalls brought about by declining property tax revenues.

The Telluride Fire District won a 2 mil increase and a Gallagher Amendment adjustment that makes up for revenue gaps in lean tax years. The proposal won by a 70-30 margin.

The Telluride Hospital District won a similar increase and adjustment by a slightly larger margin. Officials say the revenue will assist with better emergency facilities and better overall service to the public. 

Finally, the Telluride School District won their question by a slightly smaller 64-36 margin. The $1.2 million in annual revenue the district will receive as a result of the approval of Ballot Issue 4A will be used for attracting and retaining high quality teachers, general operations, programming, and maintaining class sizes.

Business Improvement District Plan Fails for Third Time

The third time was definitely not a charm for supporters of the creation of a Downtown Improvement District. The third go round at this issue was defeated by a count of 64 supporting and 108 against.

The BID funding would have been spent on improvements within the district, including snow removal, more frequent trash pick-up, marketing, way-finding signage and other services.

Under the BID plan, downtown was split into two zones. Businesses on Yampa Street and Lincoln Avenue and the side streets between them were in the premium zone. If the BID funding were approved, these businesses would have paid a special frontage assessment of $10.29 per linear foot and a mill levy of 2.22 mills. Nonprofits in the areas of Lincoln and Yampa would only have paid the special assessment and could have applied to waive or reduce what they paid on the special assessment. Nonprofits on Oak Street would not have paid any additional taxes. All other businesses in the district would have been in the standard zone and would only have paid the 2.22 mill levy.

It is unclear what will happen moving forward.

State News: Colorado Legislature Turns More Blue, Most Statewide Ballot Issues Fail

Colorado Democrats had a huge night on Tuesday, gaining control of all houses of the Colorado General Assembly. Jarod Polis becomes Colorado’s Governor, Democrats held their majority in the House of Representatives, and were able to gain three seats in the Senate to gain a 19-16 advantage. For the Colorado Association of REALTORS®, there were many wins and losses across the state. Groups like CAR are always hoping for a split legislature, which makes it tougher for bad ideas to make it all the way through the legislature. However, CAR remains excited to greet and work with the many new members of the legislature and work with them to insure that housing issues remain high on their lists of priorities.

On the ballot measure side, Colorado voters rejected nearly every proposal put in front of them that included tax increases. Both transportation funding measures (Prop 109 and the CAR supported Prop 110) failed to gain approval by similar 40-60 margins of defeat.  Amendment 73 (Opposed by CAR) would have significantly raised taxes for education funding was defeated by a 55-45 margin. Proposition 112 was opposed by CAR and would have significantly increased restrictions on the oil and gas industry was also defeated by a 56-44 measure.

National News: The Election Shows Political Divide Still Strong Across the Country

As is the case in almost every mid-term election in the modern area, the party not in the White House experienced large gains across the country on Election Night. However, the party in the White House actually strengthened its majority in the Senate, a phenomenon that does not usually occur in the midterms.

The end result is that the Democrats regained control of the House of Representatives after 10 years of Republican control and the Republicans increased their majority in the Senate. While it’s easy to lament these results as a forbearance of gridlock for the next two years, it's important to remember that balance between the parties isn’t a bad thing. The founding fathers of this country sought balance in the structure of our government and gave us a system to fully debate and vet all ideas before they become law. It might feel like gridlock, but it is actually our country at work making sure bad ideas don’t get fast tracked into law.

Opportunity Zone Proposed Rules Released

On October 19, the Treasury Department released proposed rules for Qualified Opportunity Zones, a federal program created by the Tax Cuts and Jobs Act in 2017.  The program incentivizes investment and development in distressed communities, designated as “Qualified Opportunity Zones” (QOZs) through tax benefits for investors.  These benefits include deferral of federal capital gains tax on qualified capital gains reinvested into a QOZ (via an “Opportunity Fund”), and potential reduction in the tax ultimately paid on those gains (if held for five years they receive a step-up in basis of 10%; if held for seven, 15%).  In addition, gains accrued on investments while in an Opportunity Fund and invested into a QOZ may be exempted from federal capital gains tax, if the investments are from a proper deferral election (reinvested capital gains that the tax is deferred on) and held for at least ten years.

The proposed rules provide important clarifications for interested investors, including the type of gains  eligible for tax deferral (capital only), how investments into Opportunity Funds made of both capital gains proceeds and non-gains funds are treated, the overall timeline for the program, how to certify an Opportunity Fund and meet the “90% asset requirement” (that 90% of a fund’s assets be held in a QOZ), and how they will determine that an Opportunity Fund has “substantially improved” a QOZ business property.  Further proposed rules are expected on other aspects of the program, and the IRS will hold a hearing on the issue on January 10, 2019.

Source: Telluride Association of Realtors - Government Affairs