It's a truly remarkable time to discover Telluride, Colorado as the region continues to emerge as one of the greatest mountain resorts in all of North America.

No other setting in the Rocky Mountains offers the unique combination of staggering scenic beauty, world-class cultural amenities, high-quality infrastructure and relatively low-density. Conde Nast Traveler, in its most recent ranking of ski resorts worldwide, recognized Telluride as the #2 resort in the U.S., second only to the long-established resort town of Aspen, Colorado.

In spite of all this well-deserved recognition, Telluride and the newer Town of Mountain Village remain among the best-kept secrets amid competing resort communities nationwide. Telluride's spectacular natural surroundings, rich history and relative isolation make the area a valued treasure among savvy and sophisticated travelers, both nationally and internationally.

Telluride has long provided a wonderfully safe haven for families and friends looking to relax and enjoy the serene splendor of the San Juan Mountains. As a result, it has become a very stable area to invest for many of these same parties. And while returns have proven very significant for investors in the region, the most dynamic days of opportunity lie on the immediate horizon.

Within the last two years alone, over a billion dollars worth of capital has been committed to a series of projects that will raise the standards of lodging and services within the region, while upgrading the infrastructure of both the towns of Telluride and Mountain Village. This includes initiatives toward the much-heralded final approval for construction of the Mountain Village Recreation Center at the base of the Gondola.

Phase 1 of the anticipated Telluride Regional Airport Expansion Plan begins work at the end of next summer, while a highly cohesive series of marketing initiatives led by Marketing Telluride, Inc and the Telluride Ski and Golf Company continue to broaden awareness of the resort's incomparable appeal to the international marketplace. Additionally, air service continues to expand and include regional airport hubs like Atlanta, Salt Lake City, and Los Angeles.

Internationally acclaimed events such as the Telluride Film Festival, Jazz Festival, Wine Festival, Telluride Bluegrass Festival, Chamber Music Festival and Telluride Blues and Brews Festival continue to inspire a diverse world of visitors on an annual basis. And the region is home to a vast array of non-profit organizations, such as The Telluride Foundation, whose mission focuses upon improving the quality of life for residents and visitors through targeted philanthropy and volunteer efforts.
Overall, the future for Telluride looks very bright indeed.


Below is a list of noteworthy developments and initiatives currently underway within the region:

• The Blackstone Group - will launch a $75m+ redevelopment of the Peaks Resort and Spa. The project will involve a complete remodel and upgrade of the hotel's interior and exterior; creation of a limited offering of luxury condominiums, and construction of a separate hotel tower with 36 new residences.
• Rosewood Telluride - a $200m hotel-residence project by internationally-renowned hotel group Rosewood Hotels and Resorts due to break ground in spring 2007 on a site across from the Telluride Golf Course's 1st tee box.
• See Forever Village - Mountain Village's finest luxury residences approach completion; offering a variety of spectacular penthouses and free-standing cabins, with the service and amenities of Blackstone's Peaks Resort and Spa, this private enclave shall include a new onsite fine-dining restaurant.
• Capella Telluride - a 148-unit luxury hotel and residential project underway in the heart of the Village Core. Capella Hotels was founded by legendary hotelier, Horst Schulze, the former Vice Chairman and COO of The Ritz Carlton Hotel Company.
• Lumiere - a $45m boutique hotel set steps from the ski run and managed by the Valencia Hotels, known for properties high in quality and personalized service.
• Element 52 - Located at the base of Kid's Hill overlooking the Town of Telluride, this luxury enclave will feature ski-in/ski-out townhomes and lofts featuring the highest levels of finishes, along with hotel services and amenities.
• Silverline - This luxury condominium project is the vision of Monument Realty of Washington DC. Located directly at the base of the Gondola Terminal in Mountain Village, this modernist project will also house the much-anticipated Mountain Village Recreation Center.
• Cornerstone - Situated on 6,000 acres and one hour from Town, this private ranch community features a spectacular Greg Norman-designed golf course and luxurious amenities ideally suited for families.

Telluride Regional Airport - Approved Expansion Plan will begin construction in September 200 on the five-year project that will significantly upgrade and improve all aspects of the regional airport. Located just seven miles from Town, the airport's plans include specific initiatives such as centering, lengthening and leveling the existing runway to accommodate larger jet traffic, improving safety areas, and constructing a new commercial terminal and hanger areas.

Telluride Market Watch
2006 Year in Review

As 2006 comes to a close, the Telluride real estate market continues to demonstrate its consistently dynamic growth. While most markets nationally weathered significant downturns, price adjustments or swelling of inventories, Telluride benefited from the strength of top-tier buyers, which contributed to the 11% growth of home sales over $5m in luxury markets throughout the U.S.

Owing much to the Telluride Region’s notably finite amount of developable land and a growing universe of interested buyers, the overall dollar volume of sales and median prices continued their upward trend, despite a mild fall off in the number of transactions.

Along with the other exclusive resorts of the Rocky Mountain Region, which includes Aspen, Vail/Beaver Creek, and Jackson Hole, Telluride experienced a steady growth in sales volume on pace with the previous record year of 2005.

The higher-end of the market remained strong with a number of record sales recorded through December, including a $14m+ transaction on Wilson Mesa, a $10.35m sale in Aldasoro Ranch (Bill Fandel represented both sides of this significant sale), and three transactions over $5m in the Town of Telluride.

Mountain Village registered 9 sales of single-family homes above $4m; while market-wide, the region saw 29+ transactions recorded at dollar amounts over $4m. Peaks Real Estate Sotheby’s International Realty was involved in over 40% of these reputable transactions.

Improved properties and vacant land sales within the communities of Telluride and Mountain Village continued to contribute to a majority of the sales within San Miguel County, though larger ranch tracts also registered on the list of notable sales.

Outlook: A tremendous amount of dedicated marketing dollars associated with each of the region’s new development projects, coupled with a growing universe of interested buyers, and the shrinking inventory of developable opportunities, should cause a tidal shift in the supply of available real estate locally.

With the Telluride Region’s limited density, rising construction costs, and a wave of new buyers generated by project marketing initiatives, the market should see a dynamic increase in pricing across all property categories. Additionally, a so-called “land rush” will most likely occur over the next several years, based on established trends in comparable markets.