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Entries in Real Estate Market Updates

New Hotel Complex in Development for Indian Wells

A new hotel development that marries homes, condos and conventional hotel rooms is planned for Indian Wells.

Developers announced a proposal to build roughly 300 units – in the form of multi-bedroom villas as well as hotel rooms – in a project aimed at attracting multi-generational travelers who are looking for the space and privacy offered by a short-term rental with the careful standards seen in hotels.

The project, located near the Indian Wells Tennis Garden, is also planning the development of 60 to 80 condos, which can be managed by the hotel as vacation rentals.

“When we look at the way people are traveling, when we look at the evolution of the travel space, when we look at the rise of multi-generational travel, we think we’re on the cusp of another change in hospitality,” Phil Bates, a partner with TMC Group, a real estate development firm from Irvine, told residents in Indian Wells on Tuesday.

RELATED HOTEL DEVELOPMENT COVERAGE: Montage breaks ground on luxury resort in La Quinta

 An architect's rendering of a new development planned for the corner of Highway 111 and Miles Avenue in Indian Wells. The project would build roughly 300 hotel rooms, along with condos and villas. (Photo: Submitted photo: TMC Group)

An architect's rendering of a new development planned for the corner of Highway 111 and Miles Avenue in Indian Wells. The project would build roughly 300 hotel rooms, along with condos and villas. (Photo: Submitted photo: TMC Group)

TMC Group officials, along with representatives from Fogelson Group, a Chicago-based real estate development firm, held a community meeting Tuesday at the Indian Wells Golf Resort to unveil the plans for the development proposed for the corner of Highway 111 and Miles Avenue near the Indian Wells Tennis Garden. The project would occupy about 10 acres.

The development team anticipates construction beginning early next year, with completion in 2019 or 2020.

The hotel building with its 300 rooms could be up to 85 feet tall, and is proposed for the back of the site away from Highway 111. Its height was of a concern to some of the roughly 100 residents attending the forum Tuesday.

HISTORY: First airport in Palm Springs was built for El Mirador Hotel guests

“I have a problem with 85 feet,” remarked Andy Elchuck, who lives nearby.

When asked about views of Eisenhower Mountain and other areas, Bates said, “some will be compromised.”

Development plans for the site go back more than a decade when the Fogelson Group proposed building 129 residences and villas. The Fogelson Group is headed by Jerry Fogelson, well-known for his local philanthropy and generous contributions to the Palm Springs Art Museum. He also serves on the board for the Desert Town Hall speaker series.

The property's future was put into question again in 2014 when Phoenix developer Denny Ryerson was unable to finalize an agreement with YAM Capital that would have provided the money he needed to buy out Fogelson and meet critical deadlines connected to his proposed condo development in Indian Wells.

READ MORE: Jerry Fogelson's Indian Wells project faded over decade

The project announcement comes as officials in La Quinta broke ground Monday at SilverRock, marking the start of development on a luxury resort that brings the Montage brand to the Coachella Valley. The project includes two luxury hotels which are scheduled to open simultaneously in October 2019.

Skip Descant is The Desert Sun’s tourism reporter. He can be reached at edescantjr@palmspri.gannett.com and @TDSskip

New Construction on Luxury Resort at SilverRock in La Quinta

 La Quinta Mayor Linda Evans breaks ground with Montage International and Pendry Hotels developers for La Quinta's Silverrock Resort development project, Monday, May 1, 2017. (Photo: Zoe Meyers/The Desert Sun

La Quinta Mayor Linda Evans breaks ground with Montage International and Pendry Hotels developers for La Quinta's Silverrock Resort development project, Monday, May 1, 2017. (Photo: Zoe Meyers/The Desert Sun

La Quinta crossed a milestone more than 15 years in the making Monday morning with a groundbreaking ceremony at SilverRock, marking the start of development on a luxury resort that brings the Montage brand to the Coachella Valley.

More than 100 people sat along the 18th fairway of the existing golf course, which will remain part of the resort,  – a prime view of the Santa Rosa Mountains before them – for the ceremony, including city staff, all current council members and former members Terry Henderson and Lee Osborne, as well as past Mayor Don Adolph.

“I am over the top excited to have today happen,” Mayor Linda Evans said.

The groundbreaking marks a major step forward in the development of a project that has seen years of delays, due to the Great Recession followed by loss of redevelopment funds and the need to bring in a new developer, which the council did in November 2014 with approval of a contract with The Robert Green Co.

The project includes two luxury hotels which are scheduled to open simultaneously in October 2019.

READ MORE: Montage ties name to resort

With the groundbreaking comes the closure of the back nine holes of the Arnold Palmer-designed golf course to begin realignment of three holes to make room for the Montage La Quinta 140-room “five-star” quality hotel.

The second hotel is a 200-room Pendry – Montage’s newest brand.

“It’s the first opportunity to build a Montage and a Pendry side-by-side and it took a very unique location … to do that,” said Alan Fuerstman, Montage founder, chairman and CEO.

“But the appeal of this market and this destination for both brands is so strong, it was a logical conclusion” to bring both, said Fuerstman, whose hospitality career started in Rancho Mirage.

Pendry is a new brand for the Irvine-based Montage International with just two other hotels open – in San Diego and Baltimore.

Fuerstman's son, Michael, heads the Pendry brand, and described it as “ultra-luxury” for the younger, active but well-traveled customer.

 Construction will begin from this site for La Quinta's Silverrock Resort development project, Monday, May 1, 2017. (Photo: Zoe Meyers/The Desert Sun)

Construction will begin from this site for La Quinta's Silverrock Resort development project, Monday, May 1, 2017. (Photo: Zoe Meyers/The Desert Sun)

The golf course realignment will start soon, said John Gamlin, of La Quinta, who has been with the project since the beginning and will be the local face for Green throughout development. 

The improvements must be completed and the course fully reopened by Nov. 1, according to the agreement with the city. The front nine holes will remain open throughout the realignment.

The mass grading for the hotels, conference center and other amenities is expected to start in the fall, followed by the building of the infrastructure, Gamlin said.

GETTING OUT: La Quinta getting out of golf business

The city’s redevelopment agency purchased the then-vacant SilverRock land in 2002 with a vision for a luxury resort with hotels, two 18-hole golf courses and more. The existing golf course opened in 2005.

La Quinta views the development as a major source of revenue that will help secure the city’s financial future, through hotel, property and sales taxes. The city has projected revenue from SilverRock will be well above $50 million in the first 15 years, even with a bed tax sharing agreement with the developer. To date, the city has seen about $40,000 developer impact fees.

Rosemary Genovese, mother of the late Tom Genovese, who was city manager when SilverRock was conceived, was also present. Genovese died while hiking in 2011.

“I think it’s going to be beautiful,” she said. “Very different from the original but … I think it will be a wonderful project for our city. I just wish Tom and Arnie (Palmer) could have been here.”

Desert Sun reporter Sherry Barkas covers the cities of La Quinta, Indian Wells, Rancho Mirage and Palm Desert. She can be reached at sherry.barkas@thedesertsun.com or (760) 778-4694. Follow her on Twitter @TDSsherry

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Existing Homes Sales Continue Sales Growth

The Financial news website CNBC reported this week that resales of homes in the U.S. rose to the highest level in nearly 8-1/2 years. On an annual basis, existing home sales increased 3.2% to the highest level since 2007.

These numbers seem to indicate that the U.S. economy is looking pretty good despite a drop in retail sales, and a slowdown in job growth during June.

Remember, Palm Springs Real Estate Is Local

This national real estate data is interesting and important, but as I always say, real estate is local, right down to the Palm Springs area golf & country club neighborhoods. For desert area homebuyers here’s what’s important right now: 

  • The Price Segment
  • The Location
  • Finance
  • Community Or Property Back Stories

Golf Course Luxury Home At Andalusia, La QuintaPrice Segment

Every price segment in the Palm Springs area real estate market can be different. The sales comps for $400,000 condos in the desert have little significance on the buyer or seller of a $1 million country club property. And frankly, similar homes in different developments can often be worlds apart in sales trends.

Locations

A home or luxury condo in golf community “A” could be trending up in sales and value. By comparison, a similar property in another golf community just down the road can be trending in the opposite direction. We see this almost daily, and this makes real estate here in the desert local.

Finance

Cash is always king for buyers. The second best thing is having your finance ducks in a row before you discover you place in the sun here in the desert. Get pre-approved (not pre-qualified) by a local mortgage provider. Lot’s of mortgage providers including big national banks can make promises they can’t keep. Local specialists know the market and generally won’t deliver unwelcome surprises just days before closing. 

Back Stories

Most every property, including our own Featured Properties, and certainly every development in the Palm Springs real estate market will have what I call a backstory. Backstories can include the owners reason for selling (lots of moving up this year), and information about adjacent listings and recent sales.

Top agents network with other top agents to research backstories. Knowing today’s sales comps is great, but it’s important to discover the real estate backstory for every home and community as well.

Backstories are much more unique to a large portion of the Palm Springs real estate market than most metro areas because this market has a so many niche developments. The Palm Springs area has a high concentration of master-planed, gated communities. Two of these communities in the same price range, and within the same city can have two entirely different backstories (and different sales and pricing trends) even though they are just blocks apart.

Busy & Experienced Is Also Important

At the end of the day, the most experienced, busiest, and thus, most successful Realtors likely know the comps and backstories that can best help their buyer clients find their home in the desert sun. Our Sheri Dettman & Associates team of specialists completes 10 times more transactions than the average Palm Springs area real estate.