Crested Butte Sheraton Sold; Faces Future As Condo/Hotel Facility

MOUNT CRESTED BUTTE, CO— Gart Properties and East West Partners have joined forces to acquire the 240-room/suite Sheraton Crested Butte Resort here from CDC Mortgage Capital in a $7.212-million deal arranged through HREC Investment Advisors. HREC Investment Advisors is the real-estate brokerage and investment-banking arm of Hospitality Real Estate Counselors, with offices in Denver, CO, Chicago, IL and Tampa, FL. It was suggested the new owners plan to convert about half the hotel’s current guestroom facilities into condominium units, with most pegged to sell at less than $100,000 apiece. To effect this changeover, the partnership is expecting to invest in excess of an additional $5 million (for improvements) into the property. After the renovation is completed, the property is slated to encompass some 90 individual condos and 120 hotel rooms. Additionally, it was pointed out condominium owners will have the opportunity to list their units as part of a rental pool. It was further reported the hotel is slated to continue to operate as a Sheraton until mid-April, at which time the property is to be renamed The Lodge At Crested Butte. Geographically speaking, the facility is described as being located at the base of the Crested Butte Ski Area, some 300 yards away from the Keystone ski lift. Finally, it was reported this transaction represents the third mountain redevelopment Gart Properties— the real estate arm of The Gart Cos.— has undertaken, and the second in which the company teamed with the East West organization.—Michael Billig