Efforts to work through the Chapter 11 bankruptcy moved forward last week as it was announced that the Promontory Development will be auctioned off on the 15^th of April, 2009.  Credit Suisse has opted to send the property and operations to auction rather than provide the $70 Million in exit financing mandated by the bankruptcy court.

            It is expected that Promontory will emerge from bankruptcy in April and the winner of the auction will be bound to observe key provisions of the Court-approved reorganization plan and sale procedures.  The provisions include the new owner’s obligation to honor Promontory’s County-approved master plan, the Promontory Club’s membership agreements and membership plan and the assumption of all lot purchase agreements with Promontory lot and home owners.  With some luck, this will remove some of the cloud of uncertainty that has been over the development since it was forced into bankruptcy in March of 2008.

            The Promontory luxury golf, equestrian and “club” community of second homes covers approx. 7200 acres in the Park City Area with a master plan including 5 golf courses (2 are currently complete), pool, tennis, kids clubhouse, trails, outfitters cabin, ski resort amenities at Deer Valley and Park City Resorts and more (many of which are currently in place). The area includes over 1900 home sites. Of the 700 or so lots that have been sold, nearly 300 have homes completed or homes under construction. 

            Many of the homes and lots were purchased and constructed during the Park City real estate boom. They have not escaped the current market downturn and the effects of the bankruptcy cloud over the development. There are currently over 100 lots for sale and nearly 90 homes in various states of completion.  Many of the lots are offered at prices near or below their original sales price. There are 26 homes available for under $2 Million (I can recall a time two years ago when there was only one).

            If The Promontory development emerges successfully from this bankruptcy and is able to complete its original vision as a four-season, multi-generational luxury community, this may prove to be one of the best times to purchase. See the Promontory golf page of the YouInParkCity.com website for a couple of our favorites.

             Working as a REALTOR® in the Park City and Deer Valley Utah area puts me in a place to get a lot of questions from visitors. This is especially true while I am out enjoying the things that make Park City such a great place to live or vacation; skiing, biking, playing golf, etc. People are always curious about the prices of homes and condominiums in the area; whether or not they have any interest in purchasing Park City or Deer Valley property.

            When I tell people the asking price or recent sales price of one of the homes or condominiums in the area, they commonly translate the price into a per square foot price in an effort to make a comparison to their home town.  With it currently being ski season, the questions are often related to slope-side homes and condominiums with ski-in, ski-out access and projects currently under construction like the St. Regis, Montage Hotel, and Flagstaff Condominiums. Quick math puts the prices of most of these developments in the $1200 to $2000 per square foot. “Wow” and “Maybe you can sell me a spot to stand” are common responses once the math has been done.

            One quick comment regarding the scarcity of true ski-in, ski-out property in the Deer Valley area, and for that matter, in the world often times puts a better perspective on the prices in Park City, Utah. These are also new homes and condominiums for sale with top grade custom finishes and upper end if not professional grade appliances. I remind people that the prices change dramatically as you move away from the slopes.

            It is not unlike homes with views versus those without, or homes that are ocean front versus those that are a few blocks inland. On a recent trip to San Diego, I pulled a few for sale flyers from ocean front homes; after doing the math, I found that small homes (under 1000 sq. ft.) built 20 years ago or more are commanding prices well over $2500 per square foot.

            Waterfront homes share a similar scarcity to slope-side homes; similarly resort towns all have a common scarcity in whatever makes them a great place to vacation usually makes them a very desirable place to live; if not for employment opportunities, definitely for lifestyle and quality of life reasons.

            Whatever quality makes a resort town desirable and the proximity to that attraction, whether it is the ski slopes, golf course, ocean, or bay; the closer you are, the more scarce and more costly the property.

            Deer Valley, not unlike other luxury resort towns, puts a premium on its amenity adjacent properties. But don’t let those properties scare you away from Park City as a whole; there is a wide array of ownership opportunities available for the vacationer as well as someone wanting to call Park City, UT home. The YouInParkCity.com Group can help you find anything from a premium ski-in, ski-out property to one just minutes away at a discounted price. You’ll have to make the decision of the mountains versus the beach.