Robert Lavine, founder of RAL Companies, is no stranger to turning vacations into business opportunities. While skiing at The Peaks Resort & Spa in Telluride, Colorado in 1995, Lavine spotted an undeveloped plot of land near the slopes. Unable to resist his entrepreneurial instincts, he decided to turn it into a mixed-use development known as The Inn at Lost Creek.
Lavine’s successful venture in Telluride has not gone unnoticed, as other developers are now venturing into the same market. Florida-based developers Fort Partners and Merrimac Ventures are making their presence known in the icy mountain market, solidifying Lavine’s vision of building in new markets for affluent clients.
The real estate market has experienced a significant increase in value, attracting numerous billionaires and hundreds of millionaires as potential buyers. Tal Alexander, co-founder of Official, highlighted the exponential growth in the luxury market since 2010 and the increasing number of clients seeking high-end properties.
While the desire to build for this affluent group comes with risks, developers recognize the importance of local knowledge and experience. Ophir Sternberg and Ricardo Dunin suffered substantial losses when attempting to establish a luxury resort in Nicaragua, while Yair Levy had to sell his property in Miami after defaulting on a construction loan.
According to Bryan Cho, Executive Vice President of Related Companies, successful execution in the real estate business requires years of relationship building and local presence.
Unlike others, RAL Companies has cultivated strong relationships with local communities and possesses deep knowledge of their markets. Lavine emphasizes the importance of studying the origins of tourists and ease of travel when deciding where to develop luxury properties. Sometimes, even the isolation of a destination can increase its value, as is the case with Telluride.
For real estate agents, staying current on emerging markets is crucial. Tal Alexander, determined to provide the best services to his clients, spent time in St. Tropez researching the local market. In addition to on-site research, the internet has also facilitated the exploration of distant markets and informed decision-making.
Establishing a presence in new markets comes down to word-of-mouth recommendations and building relationships. Developers and agents must adopt the same lifestyle as their clients to truly understand their needs and desires. As Alexander aptly expresses, “My clients are like my friends. The way I live my social and professional life… revolves around my business.”
In summary, developers are increasingly venturing into new markets to cater to affluent buyers seeking luxury properties in picturesque locations. Building successful projects requires a deep understanding of local markets, strong relationships, and the ability to align with the target clientele’s lifestyle. By following these principles, developers are turning their vacations into fruitful business ventures.
Frequently Asked Questions:
1. How did the development of The Inn at Lost Creek in Telluride, Colorado come about?
– RAL Companies founder Robert Lavine turned an undeveloped plot of land near the ski slopes at The Peaks Resort & Spa in Telluride into a mixed-use development known as The Inn at Lost Creek.
2. Which other developers are entering the luxury property market in mountainous locations?
– Florida-based developers Fort Partners and Merrimac Ventures are also venturing into the luxury property market in mountainous locations.
3. What has led to the growth of the luxury real estate market?
– There has been a significant increase in value in the real estate market, attracting numerous billionaires and hundreds of millionaires as potential buyers.
4. What is the importance of local knowledge and experience in building for the affluent market?
– Developers recognize that building for this affluent group comes with risks, so having local knowledge and experience is important to avoid financial losses.
5. How has RAL Companies cultivated strong relationships with local communities?
– RAL Companies has cultivated strong relationships with local communities through studying the origins of tourists and ease of travel, which helps in deciding where to develop luxury properties.
6. What role does research play in informed decision-making by real estate agents?
– Both on-site research and the use of the internet facilitate research of distant markets and informed decision-making by real estate agents.
7. How can developers and real estate agents establish their presence in new markets?
– Developers and real estate agents can establish their presence in new markets through word-of-mouth recommendations and building strong relationships with the target clients.
– Mixed-use development: A development that combines different types of uses such as residential, commercial, and services in the same area.
– High-end properties: Luxurious and exclusive properties with high-level features and amenities.
– Emerging markets: Growing markets with economic and commercial potential.
– Strong relationships: Stable and lasting relationships based on trust and mutual collaboration.
– Target clientele: Specific group of clients that a company or service targets.
Suggested Related Links:
– RAL Companies
– Fort Partners
– Merrimac Ventures
– Related Companies