Margolias Realty Sells Second Phase of Condo Development for $35M

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MOUNTAIN VILLAGE, CO-Sol Margolias, who moved form Johannesburg, South Africa in 1986 to Atlanta with only $40,000, has built a $350-million real estate portfolio comprised of 1.3 million sf of offices, warehouses and condo conversions. His most recent deal is in Mountain Village, a town of slightly more than 1,200 people that is a 13-minute gondola ride from Telluride. About a dozen years ago, he had invested in a successful condo conversion in Keystone, CO in Summit County, and says he has been looking for another investment in Colorado for quite some time.

“This is a very good location,” Margolias tells GlobeSt.com about his investment in the development called Tristant, of which he sold the second phase, and is making plans to sell the third and final phase. The 20 units in the second phase are comprised of 2,267-sf each, and he sold them in bulk for $1.75 million each to a company that will sell fractional-share interests in them. The first phase, owned by another developer, has already been built. By a way of measure, units in the first phase rent for about $10,000 a week during the Christmas season.

The second phase is under construction and he will complete that within the next 18 months. The third phase will consist of 14 units. “We haven’t priced those yet,” Margolias tells GlobeSt.com. “But we think they will go for a much higher price. We’re selling the phase II units for approximately $1.75 million at an average price of about $757 per sf. We think now that indications are they are worth close to $900 to $1,000 per sf. They got a very good deal. They should be very happy.”

All of the units are ski-in, ski-out units. But that poses a problem because of the steepness of the site. “There’s probably a 100- to 120-foot drop, which makes it fantastically easy enough to ski out and go down the mountain,” Margolias explains. “But when you come back, that steep slope poses a bit of a problem.”

To address it, he is installing a “venicular,” to bring skiers back to their duplexes and triplexes. “It’s like a little gondola on a rail that goes up the mountain side,” he tells GlobeSt.com. “It gives the project a little extra excitement, a little bit of pizzazz. It’s pretty unique for a multi-family development. Some of the big private homes have them. Homes here can sell in the $12 million to $14 million range.”