Laurelmor property:  Ginn auction draws $150M

By Scott Nicholson

nicholson@wataugademocrat.com

Ginn Clubs & Resorts held a property sale that may have broken state records for the value of resort property sold in a single day.

The company held the event at Laurelmor, a resort the company is developing in southeastern Watauga County. The property, which encompasses more than 6,200 acres and crosses into Wilkes County, has been under development for nearly two years, and Saturday was the first opportunity for customers to tour the property and sign contracts for some of the lots offered in the first phase of the development.

Jim Maskota, executive vice president of real estate for the company, said most of the approximately 500 people in attendance at Saturday’s event would probably sign contracts that day, with an anticipated total sale value of $150 million.

Most of the customers were buying only one lot, though some bought up to four.

Maskota said while some people buy a lot as an investment, most are planning to build a house within three to five years.

The customer base was mostly people from Charlotte or Florida who were seeking seasonal homes and already knew about the Blue Ridge Mountains, Maskota said. However, the developer flew in two potential buyers from Great Britain and Ireland.

“We have sophisticated, educated buyers,” Maskota said. “They know the market and what’s selling at what price.”

Well-known potential buyers included Don Beaver, owner of the Hickory Crawdads as well as Robert Niblock, CEO of Lowe’s.

The developer reportedly sold 240 lots for more than $150 million in one day.

While those wanting to build homes in the upscale resort had to wait until Saturday to sign on the dotted line, the planning process had been going on for six months.

Maskota termed the initial launch as a “whisper campaign,” where availability of the lots was spread by word of mouth.

With lots typically selling between $500,000 and $1.2 million, familiarity with the company’s other developments plays a key role in attracting a customer base. Ginn officials have said about half of the expected resort residents will have property in one of the half-dozen other developments around the country and Virgin islands.

Sandra Rodriguez, who has a home in Ginn’s development in Port St. Lucie, Fla., was one of the first to buy a Laurelmor lot. She had an inside track, however, as her husband works for the company. She and her family were already familiar with the area from a visit two years ago.

“We’ll probably stay here in the summer time,” she said, adding her two children, aged 15 and 14, are interested in attending Appalachian State University.

Rodriguez and other clients were treated to helicopter rides, buffet meals, giveaways, and displays of the hospitality that Ginn plans to offer its resort tenants. Since the company has a number of branches and will operate a lodge and golf course, Maskota said the company had more incentive to make sure customers were pleased  and felt invested in their community

“We do everything in-house: planning, maintenance, recreation,” Maskota said. “We’re a large corporation with a small-company feel.”

The company now has 4,000 employees worldwide and expects to employ about 1,000 at Laurelmor.

A number of Appalachian State University students were on hand to assist customers, and local businesses like Magic Mountain Gem Mine were on hand to make sure those touring the property had a positive experience. Potential customers received free massages, listened to traditional mountain music and met with some of the 15 contractors who were selected by the corporation to build custom homes.

Elizabeth Calloway, a project manager for Hickory-based Moss-Marlow Building Company, said builders would focus on individualized service and design dream homes in the French Provincial design selected by Laurelmor officials. Calloway say her company was one of the larger contractors involved, with nearly 50 employees. “We are proud of the fact that we do most of our own work without subcontracting,” she said. “We’ll probably be adding more people.”

Boone builder Jim Oxley said he was looking forward to building houses in Laurelmor and working with customers “that are enjoyable instead of having a lot of mumbo jumbo.” He added, “There’s great satisfaction in making sure you’re building their dreams.”

Maskota said the sales job was complex, yet simple, because, though the company is large and the development is one of the largest in the state, each property is unique because of the topography. “The property might be in the valley, on a mountain, or near a creek,” he said. “It took a lot more customer time not to sell them on the lifestyle, but to show the properties.”

In order to be able to bid on the homesites, about 750 families each paid a $2,500 refundable deposit that will be applied to the purchase price.

He predicted about 50 would remain to be sold in the first phase, out of a total of about 1,500 single-family home lots that will be carved out of the rural mountain region. The company will begin selling some of the 400 or so condominium units in the spring.

The 18-hole golf course will cost at least $50 million, Maskota said, and will feature some challenging holes that will appeal to golfers. The course is also challenging to designers, as it includes ridges and steep drops.

Ginn Clubs & Resorts has committed to placing up to 2,700 acres of the property in conservation easements. Some local residents have complained about the development’s impact on animal habitat and the watershed, as well as potential damage to the county tax values elsewhere. There were no signs of protest on Saturday.