Big Sky, MT

The 13,400 acre, private golf and ski enclave, Yellowstone Club (YC) sale to CrossHarbor Capital is finalized at a price of $115 million, according to Yellowstone Mountain Club's CB Richard Ellis. The Big Sky, Montana bankruptcy sale was finalized August 5, 2009, ending a long battle for control between Sam Byrne and Edra Blixseth.

The many Yellowstone Club real estate and Montana luxury home choices include large homesites on which to build your own, custom luxury estate; on-the-mountain chalets; single-family custom homes; private ranches, or condos in either The Enclave or at Sunrise Ridge. Many of this Yellowstone Club real estate offers golf course property or ski and snowboard access, too.

Dine at one of three rustic Yellowstone Mountain Club lodges; choose the Rainbow Lodge with its own outdoor, heated pool and views of Lone Peak; the Warren Miller Lodge at the base, offering the most elegant mountain dining in Montana; or the Timberline Café, right off the main lift for a quick, gourmet lunch before skiing undiscovered powder in the back-side trees.

The YC maintains a 24-hour professional security staff, public safety and traffic staff, Fire Department, and EMT - Emergency Medical Team.

At Pioneer Mountain's base, the 143,000-square-foot Warren Miller Lodge includes over 20 elegant condos; grand dining room; comfortable lounge; ski shop: retail and office space; business center; world-class spa; exercise room; casual café with games, TV, tables, and bar; and teen center.

The Yellowstone Club boasts more than 2,700 vertical feet of skiing, 60 skiing and snowboarding trails, children's instruction area, Magic Carpet kids' lift, terrain snow park with of rollers, jumps, rails, boxes and more, and all on the 2,200 acres of ski and snowboard terrain, boasting an over 300 inch average annual snowfall.

Taunya Fagan Prudential Big Sky, Montana Real Estate, Bozeman, MT

giving you the advantage...®

Eight months after it tumbled into bankruptcy, the posh Yellowstone Club has a new owner, and a new lease on life. By Jonathan Weber , 7-17-09 Sam Byrne, principal at CrossHabor Capital Partners and the new owner of the Yellowstone Club. The sale of the Yellowstone Club to Boston-based CrossHarbor Capital Partners was formally completed Friday, ending the main chapter of an extraordinarily tumultuous bankruptcy proceeding and paving the way for the revitalization of the luxurious private ski resort. CrossHarbor, led by real estate investor Sam Byrne, paid $115 million for the 13,600 acre club near Big Sky, Montana, and has committed additional money to fund operations and assure payment of trade creditors. CrossHarbor will operate the club in partnership with Discovery Land Co., and plans to invest in additional ski terrain and re-orient future real estate development away from the steep hillsides and toward the base area. The high-end resort real estate market is moribund, and it’s not clear how quickly the sale of multi-million-dollar lots and condos and $300,000 memberships might resume. But the sale assures that the club will remain open and employees will keep their jobs, and the many tradesmen in Bozeman and Big Sky will receive the money that they are owed and have at least the hope of future work at the club. “I am very happy that the Yellowstone Club has today successfully emerged from bankruptcy as a well capitalized enterprise that will have a bright future for its members, employees and the community,” Byrne said. “This reorganization is not only a great result for the club, but also for the local vendors and trades people in the greater Big Sky community who will, after a long wait, be paid the monies due to them.” Tom Beckett, lead attorney for the club’s creditors, said hundreds of trade claims had already been approved for payment by the key parties, and money would likely be forthcoming within the next few weeks. The Yellowstone Club, founded just ten years ago, features extraordinary private skiing, a championship golf course, and an exceptional natural setting in the high mountains north of Yellowstone National Park. But the club was forced to file for bankruptcy protection last November in the wake of the divorce of club founder Tim Blixseth, the collapse of the real estate market, and years of reckless spending. Blixseth engineered a $375 million loan from a Credit Suisse-led lender group in 2005, and he and his then-wife Edra spent much of the money on personal luxuries, and on exotic vacation properties around the world that were supposed to be part of the ill-fated Yellowstone Club World. Byrne, who had invested heavily in a condo project and other property at the club, had tried to buy the club from Blixseth in early 2008 for more than $400 million, but that deal fell apart. In the bankruptcy proceedings, Credit Suisse and Blixseth attempted to blame the mess on a supposed plot by Byrne and Edra Blixseth to get the club on the cheap. Those arguments ultimately went nowhere, but not before they precipitated a bankruptcy court battle that Judge Ralph B. Kirscher, in a ruling this week, said was “of a magnitude never seen before in this court.” The court fight was settled in June after a scathing ruling from Judge Kirscher stripped the Credit Suisse lender group of its priority claims. Kirscher ruled that the bank had acted with “naked greed” in making a loan that was based on bogus appraisals and was far too large for the business to support. Blixseth was also accused of breaching his fiduciary duties to the club, and a trial on those charges will resume in bankruptcy court in the fall. Blixseth has appealed the ruling approving the bankruptcy reorganization plan and the accompanying sale to CrossHarbor. But Judge Kirscher earlier this week refused to stay the sale pending the appeal, stating the the appeal was very unlikely to succeed. Meanwhile, Edra Blixseth is herself in personal bankruptcy, and that case has been very tumultuous as well, with Tim Blixseth and some creditors alleging a range of misconduct by Edra. She received ownership of the club last August as part of the couple’s divorce settlement, and Tim Blixseth has aimed to cast the club’s bankruptcy as her fault. But the evidence suggests that bankruptcy was all but inevitable by the time she took control. Credit Suisse, Edra and others may yet attempt to recover assets from Tim Blixseth, notably properties in Mexico and Turks and Caicos that were acquired at least in part with proceeds from the Credit Suisse loans. Those deals were not in violation of the loan agreements, but the assets could nonetheless be subject to clawback in the wake of the bankruptcy. The club currently has 320 members - a few of them celebrities, including Bill Gates. But the bulk of the members are low-profile rich folks and they were generally supportive of the CrossHarbor deal. A number of club members have co-invested in the club with CrossHarbor, as has Discovery Land Co., operator of more than a dozen high-end private clubs around the world.

With spring snow showers carrying on, Big Sky continues to feel the effects of winter while looking forward to sunnier days. Likewise, off-season gives everyone a chance to reflect on the season, evaluate their position in life and plan for the trail ahead.

It is easy to be distracted by the "noise" and mixed messages the media sends regarding the national real estate market. Now more then ever it is important to analyze the local market and make informed decisions based on accurate data.

ERA Landmark Real Estate specializes in market analysis to keep both buyers and sellers abreast of the opportunities and challenges of our current market. Many Big Sky property owners look back at the investments they have made over time and recognize the smart moves that they either made or did not make. A few people may even lament the offer or opportunity that they let "get away".

Today, Big Sky real estate is presenting buyers again with opportunities: smart buyers are finding value in properties throughout the area with a broad selection of inventory, favorable interest rates and a unique local market. Qualified buyers are poised to take advantage of the limited number of well-priced properties. Multiple offers are appearing once again in our market on properties priced to move.

Is this "the Bottom"? Timing the bottom of the ski hill at the end of your run is easy enough. Timing the bottom of the real estate or stock market is not so simple. Typically, the trough is obvious after the fact, once the market is up ticking and prices are increasing. Waiting for the market to adjust may bring increased prices and more competition for fewer properties.

What will interest rates do? The future value of interest rates is difficult to predict. What is certain is that low interest rates are available now to provide buyers with favorable options.

Inventory surplus Inventory of single-family homes and vacant land in Big Sky/Gallatin Canyon is at an all time high. The number of condo/townhomes that are currently on the market is trending down for the first quarter of 2009 relative to past years. The decrease in number of buyers is leading to an extensive selection of properties that remain as unsold inventory (pushing market absorption rates to all time highs). The lower number of potential buyers actively pursuing properties right now has significantly shifted the market in the favor of buyers. Sellers need to be aware that if they want to sell their property in 2009, they will need to price it to stand out among the vast competition, most likely under current market value.

Market analysis: The overall dollar volume was down 67% to $11,895,000 and the number of transactions was down 34% to 21 sales, when compared to the first quarter of 2008. (According to a Jackson Hole report, their overall dollar volume was down 65% while the number of transactions was down 79% to 29 sales.) Meanwhile, the average sale price fell for the first time in 4 years and the median sale price is down for the second year in a row. As of May 2, there were 674 available properties in all of Big Sky.

Single-family home sales have dropped significantly, down 50%, while the average and median sale price decreased 55% and 61% respectively. The $1-$2 Million segment of the market currently has the most available inventory for single-family homes. As of May 2, 2009, 43 of the 136 single-family homes on the market were listed for under $1 million. The median list price of $1,595,000 displays the divide between current list price (Seller's expectations) and the first quarter sold median price of $728,000 or the current under contract median list price of $819,500 (Market reality). Another perspective to consider is that the buyers that purchased in the first quarter or 2009 sought well-priced homes (under $1 Million) that they saw value in purchasing.

Vacant land sales have been more consistent between the first quarter of 2008 and 2009. The sales volume for each quarter was 7 units with the median sale price decreasing by 14% in 2009. The average sale price dropped significantly (75%) due to a land sale in 2008 for $7,000,000.

Condo/townhouse sales were down 43% with only 8 sales in the first quarter of 2009, average sale price was up 13% while the median sale price dropped 17%. Meanwhile, current inventory offers buyers 258 individual units for sale. Condominiums may face stricter financing guidelines as lenders redefine second-home properties and investment properties to limit their risks.

What does the future hold? Our office and agents are staying in the business. Although the downturn has affected the Big Sky market, we have weathered past recessions and fluctuations in buyer confidence. We are committed to helping you make the best of what Big Sky has to offer: investing in a lifestyle for the long-term.

www.ERABigSky.com

36 Center Lane
Meadow Village Center

Arrowhead Mall

PO Box 160699
Big Sky, MT 59716
406-995-3444
888-996-3444
bigskyinfo@eralandmark.com

 

 

Ushering in a new era for the Yellowstone Mountain Club, Sam Byrne's Boston-based Crossharbor Capital has won control of Big Sky, Montana's Yellowstone Club with a bid of $115 million.

Judge Ralph Kirscher ok'd the bid, which includes Sam Byrne's commitment to inject up to $75 million into the Club, with $19 million dedicated to pay unsecured creditors, most of whom are regional business owners.

The Yellowstone Club is a private 13,600 acre ski and golf community in Big Sky, MT.

Photos from Saturday, March 7, 2009, skiing in Big Sky, Montana with the family.

Our son is progressing fast, skiing the Magic Carpet Hill as well as skiing Blue slopes and Green slopes between his papa's legs.

No fun here...

The Montana snow was excellent, the Montana sun couldn't have been brighter, the big Montana sky clearer...the camaraderie better.

Tremendous views and the Tetons (not shown) are often visible on these very clear days... just a bit too many alto stratus clouds this day...