Four-Season Destination Resort
Balsams is seeking a $131 million senior loan (71% LTC) to complete Phase I of the redevelopment of the Balsams Resort in Dixville, New Hampshire into a world-class, four-season destination resort, and condo development.
Proven team led by legendary resort developer Les Otten, who took Sunday River in Maine from a small local ski hill into the second largest destination ski resort in New England, among many other successful projects.
- Over 11,000 acres of development and recreational opportunities, including three onsite lakes, with substantial infrastructure, permitting, and resources in place
- Planned Unit Development (PUD) secured allowing for the development of 4,600 4-bedroom units in future phases
- Permitting in place for future ski expansion plans which at full build-out would make the Balsams ski experience the largest in the Northeast
- Expects to sell approximately 56% of the residential fractional shares in the Dix Hampshire House and Lake Gloriette development projects and retain and operate the remainder of the residential units along with the commercial space as hotels
- Real estate presales and future projected pipeline sales are expected to be sufficient to repay construction debt within 24-months after starting construction (financial model with assumptions and scenario analyses functions available upon request)
- Current pre-sales of approximately $20MM with non-binding 5% deposits in place with buyers, many of whom are former Balsams guests
- The former Balsams Resort was historically a summer destination. The redevelopment plan expands the Balsams into a major winter destination, complementing the existing summer attractions, and creating a true four-season destination
- Growing tourism and skiing market
- More than 12 million people within a five-hour radius
- The state of New Hampshire is ranked tenth in the nation for number of total skier visits
- New Hampshire generates 2.2 million skier visits per year
- Dixville Notch, New Hampshire, has long been known as one of New England’s most iconic destinations
- Picturesquely situated in the heart of the great Northern Woods and listed on the National Register of Historic Places
- Ideal location for best-in-region winter sports and sparkling clear alpine summers due to high elevation and latitude
- Easily accessible to fast growing target demographics from Boston, southern New Hampshire, and Maine, as well as Montreal, Canada (less than three hours away)
- Domestic and international travelers contributed nearly 1.1 trillion U.S. dollars to the country’s gross domestic product in 2018 alone – domestic travel spending comprises around 80% of the spending
Phase I of the Balsams development plan (approximately $186 million investment) is designed to capitalize on the Balsam’s existing reputation by building out amenities for all seasons with 21st century design and resort concepts to produce a true year-round destination. Creating a world class destination resort.
- Renovation of historic Hampshire-Dix House (85 fully remodeled units, 103 keys and 155 sleeping spaces) and construction of Lake Gloriette House (creating an additional 92 units, 199 keys and 279 sleeping spaces). Expand the existing ski terrain including eight-passenger gondola, four new chairlifts, and state-of-the-art snowmaking systems
- Create a new base village surrounding the old hotels connected to the skiing by the gondola and a skiing suspension bridge connecting the trail system
- Revitalize the existing Donald Ross Golf Course and restoration of the historic clubhouse building
- Integrate trail networks for Nordic skiing, hiking and biking
- Capitalize on and expand world class dining reputation
- Establish a world class spa destination, The Balsams Baths
- Create a world class wellness destination centered on a sustainable resort footprint
- Business plan assumes the sale of approximately 60% of initial real estate inventory in deeded 100-day increments
Leslie B. Otten,
Leader and an innovator – promoted business and tourism for the last 40+ years. Managed Sunday River Ski Resort as the youngest ski operations manager in the country. Enhanced skiing experience by expanding and improving the lifts, creating better snow and making it easy to teach beginners. Founded American Skiing Company which expanded from CA to NH, VT, CO, and UT. Coordinated the purchase of the Boston Red Sox and served as Vice Chairman and Partner. Established Maine Energy Systems, a renewable energy company, with partners. BS in business administration, marketing and economics from Ithaca College School of Business.
Consulted on the re-opening and restructuring of the Chukchansi Casino Resorts. Served as the COO, CFO and Director of Full House Resorts Inc. Owner operator of four regional casinos with significant management projects for the FireKeepers Development Authority and the Buffalo Thunder Development Authority. COO and the CFO of American Skiing Company. MS in Accountancy from Brigham Young University and is a CPA.