Private Equity Will Pour In: STR's Colorado Resort Communities

Private Equity Will Pour In: STR's Colorado Resort Communities

Real Estate Consultant · Evergreen, CO · Member since 2018 · 1k+ posts · 736 votes

A major private equity fund with a trillion dollars of assets under management will be going heavy into the STR/Vacation home market in the Colorado resort communities. Their exit strategy is simple. The rise in property values. Appreciation. Communities like Aspen, Steamboat Springs and Breckenridge will see properties rise in value exponentially. They also do not depend on income. They will pay the minimum taxes and basic maintenance. If and when the communities get over their hatred of this industry they may then bring that model into play. Until then these properties will not be available for any use other than comps for their LP's, and friends.

I am told that they plan to invest a billion dollars into Colorado. They will entertain partners as well. 

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Jay HinrichsBusiness Member
Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
4y
Quote from @Nate Marshall:

A major private equity fund with a trillion dollars of assets under management will be going heavy into the STR/Vacation home market in the Colorado resort communities. Their exit strategy is simple. The rise in property values. Appreciation. Communities like Aspen, Steamboat Springs and Breckenridge will see properties rise in value exponentially. They also do not depend on income. They will pay the minimum taxes and basic maintenance. If and when the communities get over their hatred of this industry they may then bring that model into play. Until then these properties will not be available for any use other than comps for their LP's, and friends.

I am told that they plan to invest a billion dollars into Colorado. They will entertain partners as well. 


well with the price of homes in those locations that should buy them about 20 to 30 homes and make zero impact  :)
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  • Rental Property Investor · Dallas, TX · Member since 2018 · 15 posts · 6 votes
    4y

    That stinks. Prices are already ski high in popular resort areas

  • Ryan MoyerBusiness Member
    Property Manager · Orlando Kissimmee Davenport Salt Lake City, Park City · Member since 2019 · 991 posts · 1k+ votes
    4y

    Sounds like Zillow trying to do the same thing algorithmically last year and tanking their stock 80% when it blew up in their faces.

    Good luck to them, I guess.  Lots of holding costs and markets that are up 100%+ already in the last year, in areas where the snow quality and ski experience gets worse every year.  Maybe an opportunity one day if the market stays flat or even pulls back some over the next few years and they decide to cut their losses.

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  • Jay HinrichsBusiness Member
    Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
    4y
    Quote from @Nate Marshall:

    A major private equity fund with a trillion dollars of assets under management will be going heavy into the STR/Vacation home market in the Colorado resort communities. Their exit strategy is simple. The rise in property values. Appreciation. Communities like Aspen, Steamboat Springs and Breckenridge will see properties rise in value exponentially. They also do not depend on income. They will pay the minimum taxes and basic maintenance. If and when the communities get over their hatred of this industry they may then bring that model into play. Until then these properties will not be available for any use other than comps for their LP's, and friends.

    I am told that they plan to invest a billion dollars into Colorado. They will entertain partners as well. 


    well with the price of homes in those locations that should buy them about 20 to 30 homes and make zero impact  :)
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