Lots 126R/152R represent a truly one-of-a-kind offering in the Telluride market. The site consists of two parcels of land totaling 4.58 acres set on a ridge with commanding views of the region. This exclusive location is walking distance to the Mountain Village core and gondola, bounded on multiple sides by open space and overlooking the 1st and 18th holes of the Telluride golf course. The ski access can be best described as easy and direct.
Also unrivaled in today’s market is the subject property’s zoning and available uses. One may choose to develop the largest luxury compound in Colorado as is allowable under the existing code. The largest luxury compound in Telluride is currently under construction by a high-profile celebrity, which will be nearly 35,000 square feet at completion. The largest luxury compound in Colorado is currently nearly 53,000 square feet and is located in Aspen. This site will accommodate and is appropriate for such a compound.
Additionally, also an allowable use is a multi-unit project. This may be developed under the existing multi-unit zoning designation that is currently in place for these properties. There are 355 density units attached to these parcels of land, which is the single largest assemblage of density units in the Town of Mountain Village. At one point in time this site was approved for 164 residential units. These approvals have now expired and are no longer politically feasible. However, there is a political path to a multi-unit project on these sites. Multiple developers have considered 24 – 55 residential units as feasible in today’s political climate.
At 4.58 acres in size, the site is highly visible from the ski area and multiple other spots throughout the Mountain Village and it is the largest multi-unit and/or single-family site with exceptional physical ski access remaining undeveloped in the Mountain Village!
As the overall, long-term and permanent density for the region and Mountain Village was determined decades ago, what is currently planned and platted is all that there is going to be in terms of future development potential. Currently there are no development projects that will deliver to the marketplace in the foreseeable future.
Absolutely, for certain, there will not be any large additions of developable land or density in the San Miguel valley or Mountain Village area. With demand at all-time highs and supply at all-time lows, the result in economics is always clear; higher values.
Of the remaining undeveloped parcels of land, either multi-unit or luxury compound, this offering is, simply stated, the Best.
One of the major benefits to this site is the flexibility with how one may choose to develop this property. Given the size of the parcels, incredible location, views and sun, the site is ideal as a multi-unit condominium development, a smaller single-family home development or as a premier luxury compound.
MULTI-UNIT / CONDOMINIUMS OF EITHER LAND OR IMPROVED
The size and location of the site lends itself to a multi-unit development as it is currently zoned multi-unit in the comprehensive plan and it has the density to accommodate a large development. The previously approved PUD won approval for density on the site in 2007 for a large hotel-condominium project with 355 units of density which equaled 164 residential units and 38,000 square feet of commercial space. Those vested property rights have expired, though the density remains attached to the real estate.
While the development of a multi-unit project on this site will have to undergo a local approval process that includes community participation, the large, luxury compound development path is more simple. A buyer will find an easier path to approvals with less density. A trophy luxury compound with multiple residential and recreational structures will have great appeal in the market. Land in the core, and, in general, the Mountain Village is getting very scarce, especially an A+ site with convenience, views, sun, excellent physical ski access and very little impact from neighbors.
The county limits the size of single-family homes to 12,000 square feet, but this restriction does not apply in the Mountain Village. The existing Mountain Village zoning allows for 30% site coverage for each individual lot. As these properties have a total of 4.58 acres or 199,504 square feet of land, one can build as large an estate and compound as their imagination can provide. This is the last large parcel in the Mountain Village with excellent access to all of the amenities that are in great demand today.
TRANSFERABLE DEVELOPMENT RIGHTS
There is a set amount of density allocated to the Mountain Village and it will not change. Decades ago the Telluride community decided that they wanted to be pro-active in controlling development and took a long view. So, there was an extensive planning process that culminated in the regional master plan. This plan provided for a finite amount of density units to be built in each of the regional sub-areas, including the Mountain Village, which was granted by San Miguel County.
The original developer was wise in his vision of future development in understanding that market demand is dynamic and what was popular in 1992, might not be popular in 2020 so he created a transferable development rights system and a repository for unused development rights. This repository is called the density “bank.”
All the density units in the Mountain Village must be either attached to parcels of land or remitted to the “bank.” Third party sales are possible and do occur. Again, the sale of the units can land on a specific site or be placed in the “bank” in trust for the owner only.
The subject sites have 355 units of density – which is not to be confused with residential units – attached to the properties. Different types of units, such as condominiums, lodge efficiency and others, each require a different amount of density units. A condominium, for example, requires 3 density units to equal 1 residential unit. Similarly, a single family home requires 4 density units.
The Telluride real estate market has a storied history dating back to it’s origins in the late 1800s as a mining town. As the mining-driven real estate era waned in the early 1900s, the mid 1900s was very quiet. Then, as the world war II soldiers returned from the war, the soldiers returned to Colorado to finish what they started before the war – Ski Areas.
While many other areas such as Aspen and Sun Valley had an earlier start as developing ski area and towns in the early 1950s, Telluride did not get “discovered” as a ski town until Joe Zoline – a real estate developer from Aspen – opened the ski area in 1972. The next big event was the sale of the resort to Ron Allred and Jim Wells in 1978. They would make the most significant impact on the town and resort in the 1900s through extensive ski lift and golf course development, paving the way for Telluride to come to maturity in the 2000s.
This lagging timeline, in relation to other ski towns, has allowed Telluride to evolve more slowly and thoughtfully than essentially all of it’s peers. This has resulted in much, much less density and a significantly higher quality of life than other resorts that are currently experiencing congestion and over development such as Aspen, Vail and Park City.
The most basic economic concept is that of supply and demand. And, in few other markets is it more prominently on display than in the Telluride resort real estate market today. As demand for the community has increased in recent years and sky-rocketed during 2020, supply ceased to increase back in the late 1980s with the regional master plan that put a limit on total regional density and allocated it to certain, specific sub-markets such as the Telluride Mountain Village.
Through the ensuing decades, repeated down-zonings have occurred in places like Aldasoro, the San Miguel River Valley Floor and West Meadows from thousands of units down to a couple hundred or 0 in the case of the Valley Floor. Make no mistake, supply and demand forces are both at full force today.
Senior Vice President
Lee Associates South Florida