El Jebel Development Sold for $16.5 Million
The Roaring Fork Valley was not immune to the recent economic strife that has been felt throughout the country, but recent activity gives hope that the bottom has been reached mid-valley. Shadowrock Townhomes, a townhouse project located mid-valley in El Jebel, was recently sold to another developer with high hopes of completing the project in the next 40 months.
El Jebel Townhomes Borrower LLC, whose principal is Dave Forenza, purchased the Shadowrock project March 31 for $16.5 million, along with seven completed units for an additional $5.5 million, from the initial developer, Blue Ridge Investments Inc. Forenza is a builder and developer from the Edwards, Colorado area.
The new developer anticipates lower building costs, since labor and materials expenses have decreased over the past two years, and will market the remaining 70 units for lower prices than those proposed by the original developer. In 2008,the largest Shadowrock townhomes were marketed for $1.1 million. Forenza said he will drop the price of the remaining seven completed but unsold units to between $650,000 to $750,000 to create new momentum in the project. The townhomes that have not been constructed yet will be “affordable” according to Forenza, but prices have yet to be announced.
Shadowrock’s Development Journey is detailed below:
- 2007: Construction began for the 100 unit development by Blue Ridge Investments Inc.
- Fall 2008: After selling 23 of the 30 townhomes that had been constructed, Blue Ridge Investments Inc. lost their financing.
- March 2010: The project was purchased by El Jebel Townhomes Borrower LLC for $16.5 million.
- December 2013: projected date for final developer inventory to be sold, according to El Jebel Townhomes Borrower LLC.
