Just getting word that Stanly Ranch, the huge development that has been open for a few years in Carneros, is defaulting on a loan in the range of $200M and probably going into foreclosure. This is the developer doing so, not Auberge, its manager. Many luxe hotels in Napa with big names are often only managed by the name, not owned by it. This is true with Stanly Ranch.
Word is that the default revolves around the inability to sell the homes on the property. They just are not selling. No one wants a small home for $3M in Carneros with big monthly fees when they can get a better home at that price in Yountville or St. Helena.
Details are still coming out, but this is a major development.
HOA dues on that property is $4598 a month. Add that to the annual property taxes and one is looking at a over $8k a month, before factoring in any mortgage. That is steep.
Crazy that 3.4 is the low end and properies at the back are marketed at 6-8 million. I dont think any “price improvements” will move units. Multiple commercial projects we have worked on or know of had great financing 5 years ago and now are coming due and no longer pencil out at current rates.
It’s not even a home, it’s a condo. Good god, a condo in Napa for 3.5m? What kind of crack was everybody involved in this smoking when they planned it? An 1800 sq ft condo in Palo Alto would be pricy at 3.5m. (OK, maybe not pricy if it’s new, but your commute is 5 minutes to wherever you work that lets you afford this.)
I work in Carneros, a 10 minute drive from Stanly Ranch. I cannot for the life of me understand why anyone would want to live there. Forget 3.4 million plus insane monthly fees, I don’t know why anyone would want a house there at all. It’s a tiny closed-off community in the middle of nowhere, but it’s not a picturesque nowhere. The parcels have no land to speak of. You have to get on the highway if you want to go anywhere at all. I guess it’s round the corner from the new Costco at least?
Best I can tell someone did a study about how many visitors come to Napa compared to how many hotel rooms in the area and thought a resort would pay off, particularly if costs were offset by selling second/third homes.
In 2020 with lower interest rates and ppl fleeing crowded areas it must’ve made sense to enough ppl.
I agree the setting is meh.
Do owners put their units in the resort’s rental pool?
Methinks the target demographic isn’t commuting to a job to get money. It would seem the target demo already has substantial wealth and is in a position where there is no boss to demand regular attendance at some work location.
