Wolf Mountain (photo credit: Wolf Mountain, LLC)
Ever wanted to own your own ski resort? Now could be your chance. Utah's Wolf Creek ski resort (Wolf Mountain) is up for auction along with the resort's golf course and a large chunk of developable real property.
Not to be confused with Wolf Creek ski resort in Colorado (someone really needed a better trademark lawyer...), Wolf Mountain was formerly known by the somewhat misleading name of Nordic Valley. The ski resort boasts a 1,000 ft. vertical drop and 110 acres of skiable terrain. An accompanying 18-hole Larry Nelson golf course is the lone Audubon certified course in the state of Utah. The auction also includes the clubhouse, a pitch and putt course, and a new maintenance building.
The entire development is located in the Odgen Valley near Powder Mountain and Snowbasin. The former owners changed the name in 2005, but the crash of the real estate market coupled with the recession forced the resort into bankruptcy.
Wolf Creek is a classic example of the failed ski real estate developments that have become so common during the Great Recession. Tamarack and the Yellowstone Club are two other cases. Developers banked on affluent second home buyers, but were left high and dry by the economic downturn and decline in real estate prices.
The model is simple. Buy a large tract of land and either develop, improve or maintain an asset (normally a golf course, ski resort, or both) that inflates the value of a subdivision that you can create from the developable tract. Subdivide the large tract into lots of little pieces. The golf course or ski resort draws in buyers who pay a premium for ski in/out access or plots of land next to a golf course. Membership fees to the private club provide the developer with a small but steady stream of income between land sales and the prospect of continued returns when the membership fills out. Everything is great so long as homesales continue. When they stop, cashflow dries up and the outcome is sadly predictable.
The full 24-page offering can be found here.
The entire development is located in the Odgen Valley near Powder Mountain and Snowbasin. The former owners changed the name in 2005, but the crash of the real estate market coupled with the recession forced the resort into bankruptcy.
Wolf Creek is a classic example of the failed ski real estate developments that have become so common during the Great Recession. Tamarack and the Yellowstone Club are two other cases. Developers banked on affluent second home buyers, but were left high and dry by the economic downturn and decline in real estate prices.
The model is simple. Buy a large tract of land and either develop, improve or maintain an asset (normally a golf course, ski resort, or both) that inflates the value of a subdivision that you can create from the developable tract. Subdivide the large tract into lots of little pieces. The golf course or ski resort draws in buyers who pay a premium for ski in/out access or plots of land next to a golf course. Membership fees to the private club provide the developer with a small but steady stream of income between land sales and the prospect of continued returns when the membership fills out. Everything is great so long as homesales continue. When they stop, cashflow dries up and the outcome is sadly predictable.
The full 24-page offering can be found here.
Wolf Mountain Trail Map
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