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Teton Village real estate matures

By   /  December 3, 2019  /  No Comments

A lot has changed at the base of Jackson Hole Mountain Resort in the last 10 years. Teton Village real estate development in the next decade promises to be even more dramatic.

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If the Teton Village real estate market were to participate in the Facebook 10-year challenge, the “before” picture from 2009 would look like an an awkward tween compared to today’s dynamic, mature and bursting-with-potential portrait.

In 2009, after selling out Hotel Terra’s first tower to eager buyers at prices well above $1,200 per square foot, sales for the just-completed second tower stalled as the Great Recession found Jackson Hole. Foreclosures and distressed sales ensued with per square foot prices eventually falling as much as 50 percent in this and other “condo-tel” (condominium/hotel) properties such as Teton Mountain Lodge, Snake River Lodge & Spa and even the usually indomitable Four Seasons Jackson Hole.

Hotel Terra, with Phase One on the right and Phase Two on the left, as seen from the Teton Village Commons.

In Shooting Star subdivision, freshly approved by Teton County in 2008, golfers were few and far between on the brand new Tom Fazio golf course and in the $36 million clubhouse in the shadow of Rendezvous Mountain. Sales for the 100 building sites were slow, with the first non-developer home completed not until 2011. By 2014, only five homes were built and about half the lots sold.

All 12 of Shooting Star’s Lodges at Fish Creek were sold before construction was complete in 2014.

The broader Teton Village market in 2009, not unlike the overall Jackson Hole and national market, was anemic with just 17 sales for an approximate sales volume of $31 million, which was buoyed by two sales totaling more than $12 million. The average per square foot price was about $629. There were six sales of “Old” Teton Village condos between $269,000 and $555,000, with five of them bank-owned properties.

That was then, this is now

Ten years later, after an initially slow climb, Teton Village’s complexion has changed dramatically for the better with values returning to, and in many cases exceeding, pre-recession values.

Shooting Star West, consisting of 9 developer-built homes and six building sites, is nearing completion. As seen from Teton Mountain Lodge.

In the 12 months ending this week there have been 47 Teton Village residential sales reported to Teton County Multiple Listing Service for a total sales volume of approximately $108 million. Another four properties totaling $14 million in list prices are under contract. The average price per square foot sold is approximately $1,100.

Sales in the last year amount to an approximate tripling of unit sales and sales volume compared to 2009 even before considering sales in Shooting Star, which for the most part are not reported to MLS. Conservative estimates for sales of residential and vacant land in Shooting Star for 2019 are greater than $30 million (some reported, some not) with another approximately $35 million worth of residential properties under contract that will close in 2020.

Now, more than half of Shooting Star’s 100 building sites are built upon and all have sold at least once. More than 20 additional developer townhouses and cabins have been built and sold. The resale market is robust, with three Shooting Star estate homes selling for more than $10 million in 2019.

[Please contact me for a complete list of sales and pending sales in Shooting Star.]

Four Seasons in Jackson Hole was built in 2003. Since then it has consistently been one of Teton Village’s highest priced condominiums.

Condo-tel sales also saw dramatic increases in the last decade in terms of units sold and sales volume. From 2009 until about 2011 they were virtually unsellable (thanks in large part to stricter lending guidelines, as well as a declining market) with a consistently double-digit inventory for buyers to choose from. Condo-tel sales continued to stagnate for several years as values were more closely tied to potential income, lenders once again began considering these properties, and more potential sellers were no longer “under water.” Currently, there are often only one or two listed options in each building, if any.

Interestingly, however, condo-tel per square foot prices have not yet returned to pre-recession heights. For example, several units in the first phase of Hotel Terra closed for as high as $1,400 per foot. In 2019, the highest per-square-foot price in Hotel Terra is $1,187.

On the other hand, values have more than doubled from the lows of the recession on two properties in Granite Ridge (and others). For example, most dramatically a 2-bed unit in Four Seasons Jackson Hole, which has seen just two sales in the last three years, recently sold for $4.1 million after a weekend on the market priced at $3.95 million. In 2012, a similar unit closed for $1.635 million after months on the market. Also, a freestanding Granite Ridge Cabin townhouse with 2 beds and 2,200 square feet sold in 2012 for $1.55 million; in 2019 a Cabin closed for $3.15 million.

One of two Tensleep condo buildings in South Teton Village.

In the “Old” or “South” Village, which includes condominiums built primarily in the 1970s and 80s, the increase in values tracked more closely with the rise in condo-tel properties, with an approximate doubling of values but not yet surpassing pre-recession highs. One specific example would be the sale of a 2-bed, 760-square-foot bank-owned Tensleep condo built in 1972 for $269,280 in 2009. In September a similar unit sold for $660,000. However, the all-time highest price paid for a Tensleep unit is $690,000, which occurred in November 2007.

[Please contact me for a look at sold properties and/or a Comparable Market Analysis for a particular property.]

What’s for sale right now?

While active listings have been historically low in recent quarters, there is a somewhat representative selection of Teton Village properties currently listed. Examples include:

  • Hotel Terra: A 3-bed, 1,591-square-foot unit is listed for $1.895 million.
  • Teton Mountain Lodge: A 2-bed, bi-level, 919-square-foot condo is listed for $1.195 million.
  • Crystal Springs: A 3-bed, 2,000-square-foot condo is listed for $3.5 million. This Teton Village core property stands alone as the only non-condo-tel property, which provides the most flexible ownership in the core.
  • South Village condos: A 1-bed, 748-square-foot condo in the Sleeping Indian building is listed for $535,000.
  • South Village single-family home: A 5-bed, 7,616-square-foot home built in 2003 on .87 acres is listed for $8.995 million.
  • Moose Creek: Located at the southern end of Teton Village, there are none currently listed but a 3-bed, 2,275-square foot Moose Creek townhome priced at $3.1 million closed in November.
  • Shooting Star: A 3-bed, 3,310-square-foot cabin built in 2010 on .15 acres is listed for $5.75 million.
  • Granite Ridge Homestead: There is not a Homestead currently listed, but one of the 4-bed, 3,327-square-foot freestanding townhomes built in 1998 priced at $4.7 million is under contract.
  • Granite Ridge Timbers: A 3-bed, 3,211-square-foot freestanding townhome built in 2007 is listed for $4.25 million.

[Please contact me for an up-to-the-minute list of actively listed properties and off-market or coming-to-market properties and to receive regular market updates in your target segment.]

The Homesteads at Granite Ridge were built in 1998 and include 4 beds and 3,200 square feet.

What will Teton Village’s profile picture look like in 2029?

If there is a Facebook in 10 years, how will Teton Village’s profile look and feel then? If all goes according to plan, the base of Jackson Hole Mountain Resort will see significantly more density including residential development uphill on the lot just west of Teton Club near the skier bridge and mixed-use properties in the flats between Highway 390 and the Aerial Tram.

The next big thing in Teton Village will be a highly amenitized, as-yet-unnamed, condo project with limited public-facing spaces (a bar and a restaurant) on the 3.26-acre “H-1” parcel uphill from the Village core. At this point the plan is to break ground in 2020 and complete construction by 2022.

According to the building application, “The building will consist of 106,510 square feet of gross residential space, featuring 28 residential condominiums ranging in size from one bedroom to six bedrooms. Nineteen of the units have the ability to lock-off various numbers of bedrooms, allowing for short-term rental.”

[Please contact me for additional project details and projected pricing and availability.]

The Jackson Hole Mountain Resort Aerial Tram flies past Teton Club. The H1 parcel that will be developed beginning next year is located on the land below the tram in this picture.

Further down the road will be the development of the “Village Core,” which will is east of the Aerial Tram on land that currently includes parking and open space being used for snow storage and mountain operations. The Master Plan allows for as many as 60,000 square feet of commercial development and 128 free-market units in this area, as well as lodging and deed-restricted housing.

Significant movement on this area is not anticipated within the next few years, but rest assured the entrance to Teton Village will look significantly denser as we look ahead to New Year’s Day 2030!

[Please contact me for a copy of the Teton Village Master Plan and a lively discussion of APOs and Affordable Housing Mitigation!]

Moving closer to Highway 390, there is an approximately 10-acre parcel that is owned by Teton County, which may be home to an elementary school and/or other public buildings.

And finally, just about 1 mile south of the entrance to Teton Village is a 640-acre school trust section that is owned by the State of Wyoming. The land was set aside upon the establishment of the state to fund education in the future and these properties are regularly sold to generate income.

Teton Village South? Stay tuned.

There have been discussions concerning this square mile before, in particular around the turn of the century when a golf course was proposed, but the push has been renewed in recent days as the Wyoming Legislature seeks revenue in the face of a significant downturn in the coal and other minerals industries. Check out this story in WyoFile for details.

Will that school trust section ever be “Teton Village South”? Only time will tell, of course. I’ll keep you posted.

Do you have questions about the properties discussed here or the broader Jackson Hole real estate market?

“This is for informational purposes only and is not a solicitation for business. If you are currently working with a Realtor, contact them for additional information.”

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