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

This feature appeared in the Fall 2006 issue of Aspen Valley Resort Properties.

Land: A Dwindling Resource

Everyone wants to find their dream plots in the Roaring Fork Valley – and That’s Precisely the Problem.

By Claire Walter

“Buy land, they ain’t making any more of the stuff.” – Will Rogers.

Rogers’s quip rings especially true in the Aspen area. Consider that of Pitkin County’s roughly thousand square miles, 80 per cent is federally owned, an additional 10 percent is designated as open space, and pressure from conservation groups and the growing popularity of conservation easements, generally entered into voluntarily by long-time landowners with emotional ties to family property, have thus far eliminated or curtailed the potential for subdivision and development on some 13,300 acres. This sounds like a lot but is still only about 3 percent of Pitkin County. Martha Cochran of the Aspen Valley Land Trust says that 11,000 acres of ranchland in the Roaring Fork Valley changed hands last year – and it is highly unlikely that many buyers are planning to graze cattle on newly purchased property. “The core of the ranching community is being pushed out,” she rues.

Many large tracts have already been developed into golf courses and subdivided into housing developments. With all that, the very concept of what constitutes “land” in the Roaring Fork Valley has changed. Not long ago, “land” conveyed the sense of thousands of acres, but now it has shrunk down to acreage measured triple and double digits – and even a smaller homesite on prime land. The 124-acre Bar/X Ranch, once a small-scale cattle operation bordering Maroon Creek, recently sold for a record $48.5 million – or $391,129 per acre. And by the way, the buyer, not the seller, paid the real estate commission on top of that. As another point of interest, The Bar/X sale eclipsed the previous valley record of $46 million, paid in 2004 for Hollywood director Peter Gruber’s 650-acre Mandalay Ranch along Owl Creek Road. That came out to a mere $70,769 per acre.

The Bar/X, one of the few Aspen ranches and the rare one actually within city limits that survived into the late 20^th and early 21^st century never officially came on the market. Yet Two Stage Road LLC, an investment partnership, bought it with approvals already in place to subdivide it into 13 parcels with a single-family home on each. The least expensive lot was $4 million; the most expensive was $13 million for the largest site in the subdivision, 35 acres on which the historic ranch house is located. Buyers quickly signed on for every lot, and a waiting list formed. A fine investment indeed for Two Stage Road LLC.

A veteran Snowmass Realtor, who was involved in matching buyers with the newly available Bar/X sites, said that most lots are approved for homes of 7,500 square feet above ground, and that owners “typically” can get permission for an additional 2,500 square feet – plus, of course, additional square footage below grade level. The 35-acre parcel is permitted for 18,000 square feet above ground. With estimated construction cost for most homes at $500-$600 per square foot, a 10,000-square-foot home would cost $5 to $6 million to build and an 18,000-square-footer nearly twice that.

Another Realtor who has sold property in the area for 30 years says, “Only five or six lots are available in Snowmass. Depending on size, views, ski access and so on, figure on $2.3 million, but there are few killer parcels left. Out in Pitkin County, where the lots are a little larger, $5 million for a vacant lot is not unusual. Building costs start at $450 per square foot, plus the required $200,000 to $300,000 in employee impact fees. Building is a two-year process.”

In the ‘70s and ‘80s, he says that three-quarters of his income came from selling lots, but now, there are hardly any lots to sell – and those are often snapped up by spec-home builders who know the drill and have the time and incentive to wade through the process. “I’ve seen people buy land intending to build, but some, with more money than time, end up preferring the convenience of a spec house,” he notes, adding that about 25 spec houses currently on the market carry price tags of $6 to $12 million.

With such daunting figures, how do buyers with any but the deepest pockets buy and build their dream home on their dream lot? Pitkin County land is advertised with information on lot size, asking price and FAR (allowable floor area ratio), indicated how large a structure may be built on it, helpful in guesstimating the total cost for land or lot purchase, home design, permitting, and construction – possibly including bringing in water and electricity, dealing with sewerage, and perhaps even building a road.

At this writing, a ski-in, ski-out lot of “nearly one acre” in The Pines at Snowmass is advertised for $3,495,000 (FAR, 5,500 square feet plus 700-square-foot garage). Two riverfront acres along Castle Creek south of Aspen are listed $2,950,000 (5,750 square feet), while four acres nearby, but not on the river, are listed at $2,850,000 (7,400 square feet). Hop across the Eagle County line, and it is possible to buy 35 acres four miles from downtown Basalt for $825,000. As a rule of thumb, the farther out from Aspen and Snowmass, the more affordable land becomes.

Instead of leaving the county, some people spring for the dream property but save on design and building costs. While steaming in Miami, Tom and Christine Andersen dreamed of a family retreat in the cool Colorado mountains that could eventually become their retirement residence. They purchased land along Brush Creek Road at Snowmass and thought about putting off building for a few years. However, when they learned about the tightening permitting and building restrictions, they began interviewing Aspen architects, stressing the word “budget.” It did not seem to be in any architect’s vocabulary, so they sought a more economical approach for the shell.

They decided on a post-and-beam Lindal Cedar Home, because they customizability, enabling them to use a general contractor who smoothed the building process and local finish carpenters, stonemasons and other craftsmen to finish the interior. “Lindal sells a nice house, if that’s what you want,” Tom says. He and his wife, however, preferred interior features of their own choosing. The Andersens’ decision to install what is essentially a custom home within a quality kit shell significantly cut their costs.

While the Andersens fast-forwarded construction of their home, Kelly and Linda Hayes spent more than a decade between buying their land and moving into their home in Old Snowmass – a decade during which they completely rethought what they wanted. “We were from southern California,” says Kelly Hayes, “and when we bought in 1991, we didn’t know what we didn’t know. We thought that especially in the mountains, we could do what we wanted, and by the way, there would be water when we needed it.”

They hired a land planner to help steer them through land-use processes, obtained a road permit, dealt with right-of-way issues and had a well drilled. “We came back and forth to sign checks,” he adds. Then they moved to Aspen in order to be closer to the “great big house” they intended to build. Their original plans were for a 6,500-square-foot mansion with many bedrooms, his and hers offices in separate buildings and a multi-car garage. But they didn’t begin construction for various reasons, including enjoying living in town, the cost of money and most significantly, an evolution in their own thinking.

They visited their land during every season and in all kinds of weather, walking it and even camping out in a teepee. “We spent nights there, summer and winter, and we learned to love it,” Kelly says. “A lot of people don’t spend enough time on their property. They should get a real feel for it. They should know its history. They should know what’s there – what flowers grow there.” After several years of thinking and rethinking, the couple drastically scaled back their plans from a trophy home to a pared-down, environmentally responsible, two-bedroom home on a knoll, with knockout views of Mt. Sopris and the ski runs of Snowmass, Aspen Highlands and even Aspen Mountain. Intrigued by the green-building movement, they investigated various smart-building options and decided on concrete-covered straw bale. The thick walls convey a Southwestern feel, while the gray stucco finish, gently curving roofline, enormous south-facing windows and tall, tapering chimney provide a look of urban sophistication.

The Hayeses say that their cozy home cost 60 percent less to build than the average Aspen area house and estimate that passive solar heating and straw’s intrinsic insulating properties save 25 percent over the energy costs of a conventionally built home. If asked for advice by anyone who wishes to build, Kelly Hayes would say, “Get to know your land. Such individual knowledge helps ensure that you don’t do something stupid on the land. The house will outlast you. It should be something you can be proud of.”