Copyright © Claire Walter 2006

 

Editors: For reprint rights, contact cmwalter@claire-walter.com.

 

This feature appeared in the Holiday 2006/2007 of Aspen Home Magazine.

 

Sharing the Wealth

 

Fractionals offer maintenance-free Aspen ownership, sometimes at a fraction of the cost

 

By Claire Walter

 

For the past few years, Aspen’s hottest development trend has been fractional ownership, a more prestigious, more upscale, and more service-oriented kin to the timeshare concept. Fractionals even have their own terminology: To convey the message of luxury and exclusivity, developers and real estate marketers refer to each unit as a “residence” and often call the development and operational formula a “club,” “private club,” or “residence club.”

How hot is hot? On a national level, according to Ragatz Associates, an Oregon-based consulting firm that compiles research on the fractional market, sales of fractionals were close to $2 billion in 2005, almost four times the amount sold in 2003. This year, that figure is expected to fall between $2.5 and $3 billion. In Pitkin County, Land Title Guarantee Company reported fractional sales through August 2006 of $116 million, up 22 percent from last year’s comparable time period. As for the number of intervals sold, buyers had snapped up 450 fractional shares through the end of August, 65 percent more than through August 2005.

Ragatz also estimated a total of 250 fractional resorts in the U.S. as of last year, with about half situated in the western mountain states, and projects that the 2006 total will exceed 300. The Aspen area is home to six of those resorts—spread among downtown Aspen, Aspen Highlands, Snowmass, and Basalt—with three more scheduled to come on line in the next year.

Fractional ownership draws vacationers who visit a resort frequently and want more space and features than a hotel room provides. They like to walk through the door of their own property and spread out. They like a comfortable, family-friendly living area for relaxation and a quality kitchen so that every meal does not have to be eaten out. But they also like such top-flight hotel amenities as a concierge, 24-hour room service, restaurant/bar, and a fabulous pool, spa, or fitness center—amenities not usually available in condo complexes. Additionally, there is considerable appeal to owning property for which someone else oversees snow removal, maintenance, and repairs without the owners themselves having to hire a caretaker, plowing service, plumber, electrician, and other providers to handle routine and emergency matters.

In Aspen in particular, where single-family home sale prices recently averaged $5 million and condos $1.6 million, according to the Aspen Board of Realtors, a fractional can be a smart buy for those with a set budget and/or those discouraged by the lack of available inventory. After an extensive real estate search over the course of several visits to Aspen, Houston resident David Massarano had hit a dead end. “Frankly, there were no single-owner properties in my price range with both an acceptable location and construction quality,” he says. “If the location was acceptable, the property was 20-plus years old and in need of a major remodel.  If the construction was acceptable, the property was ground level facing a parking lot.”

He and his wife, Andrea, eventually found what they were looking for at the Hyatt Grand Aspen, downtown Aspen’s first purpose-built fractional property, which opened in December 2005. They reserved a one-bedroom unit pre-construction in 2003 and closing on it last December. “Owning a fractional alleviates the headaches associated with second-home ownership,” notes Massarano. “With a fractional, we pay for the portion of the property that we use and don’t worry about leaving the property vacant or hassling with renting it for the other 10 months of the year. And it allows Andrea and me to maximize our time doing the things we love about Aspen.” 

Aspen-area fractionals offer a distinct measure of luxury. Kitchens are outfitted with designer cabinets in cherry or other costly woods, granite countertops, and high-end appliances (and may include additional amenities like a wine cooler). Expect to find flooring materials like slate, tile, expensive hardwood, and quality carpeting. There is normally one bathroom per bedroom and often an additional partial bath. On-site owner storage allows you to streamline your packing list.

            The amount of time you may use a unit depends on the fraction purchased. In the Aspen area, this generally translates to an equal number of guaranteed summer and winter weeks, with the rest during shoulder season and additional weeks possible on a space-available basis at no extra charge. Some properties assign fixed weeks, others have floating weeks (fixed means you get the same week every year; floating weeks rotate annually among owners—for instance, each of four owners with one-fourth interest would get Christmas week every fourth year).

Each property’s specifics are, well, specific, so it pays to listen carefully and read the fine print. At some properties, owners use the same unit each time they are in residence; in others, they do not.  Some fractional stays can be traded for other locations within a consortium of similar properties. When hotels such as the Ritz-Carlton, Hyatt, or St. Regis get into the act, for example, trades within that resort brand are facilitated. 

When Rusty and Jeanne Parker of Austin, Texas, came to Aspen for their ski vacation a few years back, they were armed with a recommendation from friends for the Ritz-Carlton Club, Aspen Highlands, then just a construction site. “I’m a land developer,” Rusty says, “and this wasn’t my thing, but we went to look anyway.”

            They were “blown away by the property and its location,” he recalls, and committed to buying an interest in a three-bedroom residence before they left Aspen. Rusty says, “We’ve learned to use the system. We know how to trade. We tell them which storage bins to bring up and which restaurants we want to go to. The ski shop next door has our sizes, so our [rental] skis are at the ski valet. We show up, and we’re ready to go.” The couple has also traded for Ritz-Carlton Clubs in Jupiter Beach, Florida, on St. Thomas, and at Beaver Creek’s Bachelor Gulch, also in Colorado.

Location, luxury, and service come at a price, of course, with purchase prices of up to $2.5 million and annual dues, maintenance, and other fixed costs approaching or exceeding $10,000. That would buy a lot of nights in even the most luxurious hotel, but for many owners, the space, privacy, and predictability are priceless.

 

 

THE NUTS AND BOLTS GUIDE TO ASPEN-AREA

FRACTIONAL OWNERSHIP

 

Property Name: Dancing Bear Residences Aspen                    

 

Where: 411 South Monarch, Aspen (located on Wagner Park)

 

What: 20 units in two adjacent buildings (1/8 interest sold deeded, fee-simple).

 

How Much: Three-bedroom, $649,000; one-bedroom, price to be announced. Six guaranteed weeks per year (two summer, two winter) and two space-available weeks. Unlimited additional weeks on space-available basis.

 

Annual Assessments: $13,000-$15,000.

What’s Included: Lobby, concierge, on-site restaurant / bar / lounge, Hollywood-style theater room, conference facility, children’s playroom, kids’ video arcade roonm. fitness center, massage room, business center, ski lockers, private storage, wine storage, underground parking garage, wireless throughout

Added Info: Schedule for 2007-08 ski season completion.

Website: www.dancingbearaspen.com

Sales Office/Agent: 866-920-2510 or 970-920-2510

Property Name: Hyatt Grand Aspen

 

Where: 415 East Dean Street, Aspen

 

What: 50 units (sold deeded 1/20 Interest).

 

How Much: Two- and three-bedroom units, $100,000-$1,000,000. Guarantee of one fixed week per year, plus Hyatt Vacation Club points that can be used in Aspen or at other Hyatt fractional-ownership properties or at Hyatt hotels. Twenty weeks per year are sold, leaving 32 weeks for flexible bookings.

 

Annual Assessments:$2,000 per bedroom, based on 1/20 share.

 

What’s Included: Concierge, pre-arrival grocery shopping service, twice-daily housekeeping, complimentary airport shuttle, ski and bike valet, heated outdoor pool and hot tubs, fitness center.

 

Added Info: Fifty units with 33 unique floor plans. First purpose-built fractional property in downtown Aspen.

 

Website: www.hyattaspen.com.

 

Sales Office/Agent: 970-920-3204; also Mason & Morse, 888-354-500 or 970-925-7000

 

Property Name: The Innsbruck

 

Where: 233 West Main Street, Aspen                 

 

What: 17 units, sold on a deeded half-interest basis.

 

How Much: One- and two-bedroom units, $83,700-$197,000. Owners guaranteed three prime-season weeks, one shoulder-season week and may book additional weeks on a space-available basis.

 

Annual Assessment: $3,086 for one bedroom, $6,172 for two bedrooms.

 

What’s included: Completion planned for June 2007 ski season. Courtyard with heated resistance pool, gas grill, fire pit, hot tub, on-request local transportation, bikes available for owner use.

 

Added Info: A piece of Aspen tradition. Currently being developed on the Innsbruck Inn site.

 

Website: www.TheInnsbruck.com

 

Sales Office/Agent: ReMax Premier, 888-920-0043 or 970-920-0121

 

Property Name: Monarch on the Park

 

Where:  Corner East Cooper Avenue and South Monarch Street

 

What: 14 units, to be offered on a fractional basis; details to be announced..

 

How Much: Two- to four-bedrooms; prices to be announced.

 

Annual Assessment: To be announced.

 

What’s included: Redevelopment of The Limelight into 14 fractionals and 126-room lodge. Completion date to be announced.

 

Added Info: Limelite’s owning family currently redeveloping.

 

Website: www.monarchonthepark.com

 

Sales Office/Agent: Rich Wagar, 970-920-3131

 

Property Name: The Residences at Snowmass Club                

 

Where: Snowmass Village

 

What: 21 units, sold on a fee-simple deeded basis. Owners four guaranteed weeks per year and unlimited additional access, space available.

 

How Much: Two- to five-bedroom units,  $239,000-$405,000. Owners may trade weeks with other Storied Places developments and may use Snowmass Club facilities for 10 days a year, even if not staying overnight.

 

Annual Assessment: $12,000.

 

What’s Included: Located at the Snowmass Club and its Jim Engh-designed championship course, 19,000-square-foot health and fitness club, indoor and outdoor tennis court, kids’ club, shuttle service

 

Added Info: Sales and management concept by Intrawest. Exclusive “First Tracks” program at Snowmass. On-site dining at Sage Restaurant and private lunches at the Lynn Britt Cabin.

 

Website: www.storiedplaces-aspensnowmass.com.

 

Sales Office/Agent: 970-923-0975.

 

Property Name: Residences at the Little Nell

 

Where: 520 East Durant Street, Aspen

 

What: 26 units, sold as deeded, fee-simple interest.  Owners are guaranteed six weeks’ use annually, plus additional weeks on a space available basis. For larger groups of family or friends, owners may use more than one unit at a time.

 

How Much: Three- and four-bedroom, $1,300,000 to $2,250,000.

 

Annual Assessment: $16,000-$20,000

 

What’s Included: Access to the Little Nell Hotel services, rooftop swimming pool, two roof-top spas, 24-hour concierge, pre-arrival grocery shopping service, on-mountain lunch service, clubhouse, owner storage area, on-demand airport transportation, private underground parking when in residence, private fitness center, 24-hour room service, 24-hour housekeeping service, wine storage, business center with high-speed wireless Internet access.

 

Added Info: Located adjacent to the Little Nell Hotel at the base of Aspen Mountain. Cited in The Robb Report’s 2006 ‘Best of the Best’ issue for fractional ownership properties. Fifty percent of rental fee goes to the owner.

 

Website: www.rlnaspen.com

 

Sales Office/Agent: 877-925-7272, 970-920-7272

 

Property Name: Roaring Fork Club      

 

Where: 100 Arbaney Ranch Road, Basalt

 

What: Of 48 log cabins, 16 sold as deeded, undivided interest as a tenant-in-common. Under Cabin Partners program, each 1/6 interest includes up to 14 days of planned winter vacations and 14 days of planned summer vacations; ¼ interest gets up to 21 days in winter and 21 summer.  After all planned vacation weeks confirmed, owners may reserve unlimited additional lodging on a space-available basis.  Also, 12 lodge suites,8 sold as 1/6 ownership, with 60 days of use per year, including two summer weeks and two winter weeks.

 

How Much: Three-bedroom cabins,1/6 ownership, $320,000 to $350,000. ¼ ownership, $480,000 to $500,000. Buyers must be regular members of the Roaring Fork Club (club dues additional). Lodge suite, $250,000, including 30 days of golf per year.

 

Annual Assessment: $10,000 for lodge unit; $20,000-$25,000 for others.

 

What’s Included: Jack Nicklaus Signature golf course, concierge, tennis, swimming pool, fitness center, on-site dining, children’s program (vacation periods and holidays).

 

Added info: Rental program for unused weeks, with part of the revenues going to the owner.

 

Website: www.roaringforkclub.net

 

Sales Office/Agent: 970-927-2911. Also, Frias Properties of Aspen, 877-636-4626

.

Property Name: Ritz-Carlton Club, Aspen Highlands                           

 

Where: Aspen Highlands

 

What: 73 units, sold on a deeded half-interest basis. Owners are allocated 28 days, with prime season allocated according to a rotating calendar. Reciprocity with other Ritz-Carlton Club locations.

 

How Much: Two- and three-bedroom, $152,000-$525,000.

 

Annual Assessment: $10,000-$12,000.   

 

What’s Included: Full Ritz-level hotel services: shuttle transportation, concierge, spa and fitness center, ski valet, twice-daily housekeeping, heated outdoor pool with deck, whirlpool spa, members' lounge, business services, access to Ritz-Kids program, underground parking.

 

Added Info: Located slopeside at Aspen Highlands. Willow Creek Bistro for fine dining on-site.

 

Website: www.ritzcarltonclub.com/en-us/locations/ra/default.jsp

 

Sales Office/Agent: Frias Properties of Aspen, 877-636-4626.

 

Property Name: St. Regis Club Aspen

 

Where: 315 East Dean Street, Aspen

 

What: 14 units sold on a deeded basis, 9 units sold as fixed club interest (same unit, same weeks each year) and 15 as premier club interest (use on rotation basis with owner selecting unit and week, based on priority ranking and unit availability). Owners allocated 28 days, with time and length of stay determined by type of membership purchased.

 

How Much: Two- and three-bedrooms, $300,000-$1,500,000

 

Annual Assessment: $10,000-$12,400.

 

What’s Included: Adjoins St. Regis Aspen and includes both club and hotel facilities and services, including members’ lounge, health spa, on-site dining and entertainment, swimming pool, storage services, housekeeping, 24-hour in-residence dining.

 

Added Info: Downtown Aspen location. Club weeks may be converted to the highest level of Starwood Preferred Guest Program; two weeks a year may be exchanged for other locations.

 

Website: www.stregisclubaspen.com.

 

Sales Office/Agent: 970-925-2277

 

Property Name: The Timbers Club at Snowmass

 

Where: Snowmass Village

 

What: 36 units, member-owned residence club, sold as a deeded 1/8 undivided interest as tenants-in-common.  Owner guaranteed minimum of six weeks’ use per year, including two during prime winter season and two during prime summer season. Additional weeks on a space-available basis with no cap on length of stay. Note restriction on resale until developer has sold the 288 three-bedroom ownership interests.

 

How Much: Three-bedroom units, $430,000.

 

Annual Assessment: $9,877.

 

What’s included: Slopeside lockers and ski valet service, outdoor heated pool, outdoor hot tub, permanent owner storage facilities, concierge, members’ lounge, game room, children’s playroom, complimentary local transportation, underground parking.

 

Added info: Ski-in/ski-out location at the base of the Assay Hill chairlift.

 

Website: www.timbersclub.com

 

Sales Office/Agent: (970) 922-1000 or
Toll Free (877) 923-4387