Mammoth Crossing

Ashley Toups
760-914-0066
[email protected]
BRE#02057867

Matthew Lehman Real Estate Disclaimer. We obtained the information above from sources we believe to be reliable. However, we have not verified its accuracy and make no guarantees, warranties, or representations. It is submitted subject to the possibility of errors, omissions, change of price, rental or other conditions, prior sale, costs, lease or financing, or withdrawal without notice. We include projections, opinions, assumptions or estimates for example only, and they may not represent current or future performance of the property. You and your tax and legal advisors should conduct your own investigation of the property and transaction. Any information important to you should be verified through sources in which you feel confident.

Overview

Mammoth Crossing is a premium development opportunity located in Mammoth Lakes, one of North America’s most popular resort destinations. In addition to its location within this highly visited resort, Mammoth Crossing makes up three corners of the most animated district of Mammoth Lakes. Only steps from the Village Ski Gondola, transit hub, events plaza, shopping and ski back trail, Mammoth Crossing fulfills the Town of Mammoth Lake’s requirement as a “feet first” pedestrian opportunity.

The opportunity consists of three corner locations:

Site 1

is approximately 1.79 acres and is located at the northwest corner of the intersection, enjoying convenient pedestrian access to the popular North Village resort node, whose gondola station provides a popular portal to the renowned ski mountain. This highly visible site is home to Mammoth Brewing Company, currently the prominent tenant of the property. Maximum density for Site 1 is 110 rooms per acre, not to exceed 80
rooms per acres for the aggregate of the entire Mammoth Crossing district.

Site 2

is an appropriate location for a three or four phase mid-rise condo/hotel project. Maximum density for Site 2 is 81 rooms per acre, not to exceed 80 rooms per acres for the aggregate of the entire Mammoth Crossing district.

Site 3

has two separate zonings, the northern portion has 2.96 acres zoned MC, while the southern portion is 1.2 acres and is zoned “Resort”.

Maximum density for Site 3 (MC zoning) is 61 rooms per acre, not to exceed 80 rooms per acres for the aggregate of the entire Mammoth Crossing district. The Resort zoning allows for a higher density than the MC zoning, but will likely be restricted due to the shape of the Resort zoned parcel.

Increasing property values, low real estate inventory, growing visitations, and limited land availability make Mammoth Crossing truly unique. Its location within an approved North Village Specific Plan paves the way for a simplified development process as entitlements are effectively in place.

Mammoth Crossing sits among other reputable developments. Surrounding projects include the Westin “Monache”, Village at Mammoth (Grand Sierra Lodge, Lincoln House, and White Mountain Lodge), 8050 Residence Club, Limelight Hotel (underconstruction), and a proposed Marriott flagged hotel on the Berner property. Recent land sales are available and give strong support to current land value, while current condominium sales provide strong revenue estimates for the projects incorporating condominiums as an end-use.

**Allowable Rooms assumes 2-bedroom units on the Resort Zoned  parcel of Site 3. The estimated rooms under highest and best use is 204.

The elevation of Site 1 is above properties to the south and as a result affords incredible views of the Sherwin Mountains. Higher floors built on Site 1 will allow mountain views in all directions.

Because Site 1 is located on the northwestern corner of the Main Street and Minaret intersection, access to the North Village is very walkable and pedestrians will not need to cross streets. The Village ski gondola, transportation hub, shopping and restaurants are less than a blocks distance.

The corner location lends itself well to a quality hospitality product with ground floor food, beverage, and retail uses.

Conceptual Develoment for Site 1

Site 2 has a triangular shape with a focal point at the corner of Lake Mary & Minaret Roads and another focal point at the midpoint of the Lake Mary frontage. Both focal points afford high traffic visibility for those traveling to and from the Village at Mammoth or Mammoth Mountain’s primary ski lodges. These focal points afford the greatest height and encourage animation through ground floor retail and restaurant uses. This site is one of the best development locations in Mammoth Lakes.

The tiered topography and varying height requirements lend the site well to a phased building approach, like the three phased approach used in building the Village at Mammoth. Site 2 fronts on two primary corridors entering the Village and affords the ability to accommodate separate developments.

Height allowances of up to 65’ opens the opportunity to views in many directions including views to the Sherwin Mountains, the White Mountains, and Mammoth Mountain Ski Area.

Conceptual Project for Site 2

Its corner location offers approximately 1001 square feet of frontage along Main Street and Minaret Road and because the site was previously improved with two dated motels approximately 25% of the site is graded and level.

Site 3 has two distinct zonings, lending itself to two separate projects. The northern portion of the site consists of 2.96 acres zoned Mammoth Crossing (MC) while the southern 1.2 acres is zoned Resort (R).

The R zoned parcel is included in the total site acreage but is not  within the North Village Specific Plan. The R zoned parcel is contiguous with the MC zoned parcels and is essentially delineated by a 40’ roadway easement, East Bear Lake Drive. East Bear Lake Drive provides access to the Gray Bear development just east of the site.

With building heights up to 65’, improvements will be afforded views to the Sherwin Mountains, the White Mountains, and Mammoth Mountain.

Conceptual Plan for the MC Zoned Parcels (2.96 Acres)

R Zoned Parcel (1.2 Acres)

The Resort (R) zoning within Site 3 is not located in the NVSP, but rather a separate master plan named “Lodestar”. Although the R zoning by itself permits 8 “units” per acre, the parcel’s inclusion within the Lodestar master plan dramatic increases the allowable density to 44 units per acre, or 52 total units for the 1.2-acre site. This equates to 104 rooms, assuming 2 bedrooms per unit. While the site has a legal density of 52 units, the topography, shape, and physical characteristics limit the physical and financial feasibility to an estimated 8 units. For clarification, a “unit” as defined in the Lodestar master plan is NOT the same as a “room” as defined in the NVSP. Instead, a unit has a far broader definition affording one or more bedrooms per unit. For
example, a two-bedroom or a three-bedroom condominium would be considered one unit under the Lodestar master plan.

Through discussions with local builders and based on research of market demands in Mammoth Lakes, the highest and best use for this site is to build eight townhome style residential units. Market demands indicate the greatest desire for three-bedroom townhomes with 1740 to 2,025 square feet of living area and a private two car garage. Construction costs for wood frame townhomes is lower than mid-rise construction requiring concrete and steel. Additionally, sale prices per square foot are proving to be higher for premium townhomes than smaller mid-rise units.

Land Sales (as of May 2023)

Below is a summary of development properties either listed for sale, under contract for purchase, or recently sold. Mammoth Crossing is a key development parcel, and it is therefore important to look at other significant sites to best understand attitudes of buyers and sellers in the current market. These listings represent all the key development properties in recent years.

Village East Property – is a 5.37-acre assemblage of land, located directly across the street from the Village Gondola and west of the Berner Property. This property is presently used as an interim parking lot for the Village at Mammoth and proposed for high-density, mixed-use development comparable to the Village at Mammoth. The property is zoned Plaza Resort within the North Village Specific Plan, which is the highest density zoning within the Village Corridor.

Like the subject property, this property has an excellent location steps from the Village at Mammoth events plaza. The Plaza Resort zoning for this property allows an aggregate of 80 Rooms per acre, however there as an additional 124 room density bonus granted to this property as part of a density exchange with the Westin Property to the west.

3789 Main Street “La Sierras” – is a .96-acre parcel of land having recently sold for $3,490,000, or $3,635,417 per acre. This parcel is located on Main Street and has a similar overall development potential to the subject site. This parcel was previously improved with a structure that had exceeded its useful life and those improvements have been razed due to health and safety issues.

Like the subject, this parcel is a similar distance to the Sierra Star Golf Course and just a few blocks from the Village at Mammoth. The drawback of this site is that it is not located in the North Village Specific Plan and not surrounded by consistent development standards. Building standards for improvements up to 2.0 Floor Area Ratio (FAR) for this site, formerly 80 rooms per acre.

The Woodsite – 4.04 acres of level land located approximately one block to the south of the subject properties. The Woodsite abuts the Sierra Star Golf Course along its southern edge and has historically been used as an event site for summer festivals. The Woodsite is zoned Specialty Lodging, affording 48 rooms per acre, or 193 rooms for the entire parcel.The highlights of this parcel are the fact it abuts the Sierra Star Golf Course and that it is generally level.

The drawbacks of this site are a greater distance from the Village core and a lower density than the subject. This site will not afford the same views as the subject properties, and it will present end users with a longer uphill walk to the Village center and gondola access. This property was listed for sale on 6/2/2022 for $6,400,0000.

The Berner Property – 2.1 acres of land, improved with industrial and storage structures at the end of their useful life. This property is an important comparable due to its within the NVSP and is a comparable distance to The Village Gondola, Events Plaza, and Village center. This parcel allows very similar development uses with a lower overall density of 48 rooms per acre. The property was recently sold with approved entitlements for 101 rooms.

This parcel has a level development area of roughly 1.2 acres and upsloping topography area of approximately .7 acres. The owners (Greens Group) received development approvals for revised 101-unit branded Marriott hotel which they propose to break ground on in the spring of 2023.

Village East Property – is a 5.37-acre assemblage of land, located directly across the street from the Village Gondola and west of the Berner Property. This property is presently used as an interim parking lot for the Village at Mammoth and proposed for high-density, mixed-use development comparable to the Village at Mammoth. The property is zoned Plaza Resort within the North Village Specific Plan, which is the highest density zoning within the Village Corridor.

Like the subject property, this property has an excellent location steps from the Village at Mammoth events plaza. The Plaza Resort zoning for this property allows an aggregate of 80 Rooms per acre, however there as an additional 124 room density bonus granted to this property as part of a density exchange with the Westin Property to the west.

Yotel/Nevados Property – is located at the north-east corner of Main Street and Minaret Road in Mammoth Lakes. This is one of the most visible properties in Mammoth Lakes and consists of 2.58 acres of land with two buildings nearing the end of their useful lives. After its sale in 2018, a concept called Yotel was proposed for this property consisting of smaller than typical rooms with substandard finishes; this concept was not well received by the open market. This property had since resold in 2022 for 35% above its previous sales price.

This property sits directly across the street(east) from the Mammoth Crossing parcels and may resurface in the future with a more market compatible design. This parcel sold with housing requirements mitigated, resulting in a higher sales price per room than competing properties. 80+ rooms per acre permitted for this site.

The Limelight Parcels – are an assemblage of 6 parcels in the North Village Specific Plan zoned both Plaza Resort and Resort General, two of the higher density Plaza Resort zonings within the North Village. While these parcels offer a good location adjacent to the Westin Monache, the topography on the eastern half is steep, presenting high development costs for the entire assemblage. At present the Limelight owners are building a mixed condo/hotel project consisting of 154 rooms, an initial phase for a larger project.

The Limelight is a key project for Mammoth Lakes as this is being brought forth by reputable developers from the Aspen, Colorado area. *This property was sold with a negative parking covenant adversely impacting the sale of the parcel by $1.3 Million. 48-80 Rooms per acre permitted depending on the individual parcels within the entire project. Project construction began June 2022.

The Minaret Parcel – is a 3.21-acre parcel of land located directly to the south of the Mammoth Crossing Site 2. This parcel is listed for sale by Matthew Lehman Real Estate and is currently under contract for purchase. The Minaret Parcel is zoned Specialty Lodging, affording 48 rooms per acre, and has a unique shape.

While 2/3 of the parcel is generally level, 1/3 of the parcel is relatively steep and narrow when considering development. 48 Rooms per acre permitted for this site.

Map of Recent Land Sales

Summary of Land Sales

The land comparables provide good support to value from a sales comparison prospective. It is evident that prospective buyers are placing great emphasis on price per developable room. The price per developable room for the comparable sales provided ranges from $19,554 to $37,990, with a predominance of value around $30,000 per room. The Village East Parcel was granted an unique density bonus through a density exchange with a neighborhing proprety within the North Village Specific Plan and lends good substance to the the price of Mammoth Crossing. This property has already been graded and has an interim use as the Village Parking Area.

The most recent sale of the Yotel/Nevados proprety is perhaps the most reflective of the sale given the parcel’s location, size, density and overall appeal. The buyer of this site has been an active builder in Mammoth Lakes with a proven success record. The recent sale of this parcel also helps demonstrate the increase in value (35%) for development projects in Mammoth Lakes over the past 5 years.

The Limelight property is an outlier representing the lower end of the sales price per room range. This lower than average sales price per room is attributed to the following factors: The Limelight property was sold with a $1.3 Million negative parking convenant resulting in a lower than market sales price. With adjustments made for the negative parking convenant, the price per allowable room increases from $19,554 to approximatly $22,772. The steep topograpy of the development site also lends support to its lower than market price per room. As stated previously, construction on this project begain June 2022.

In conclusion, the land comparables lend strong support to land value through pricing per developable room. Zoning and current demands for residential condominiums indicate the highest and best use for the property is likely a condo/hotel product, similar to that seen in the Village at Mammoth. The pending development of the Limelight and Berner properties suggests support for lodging demand in the Mammoth Lakes area and the desire for reputable deveopers to bring forth flagged projects.

Projected Condominium Sales

Recent sales of comparable condominiums in the Village area and surrounding premium locations lend the best support to projected sales for these sites. This is attributed to mid-rise designs, underground parking, and proximity to the village core. The Westin Monache would typically lend good support to value, however sales from this project have not been considered as recent sale prices have been impacted due to a pending remodel assessments (roughly $40,000 to $60,000 per unit). Active listings from the proposed Limelight will offer the best direction of pricing as this property is located across the street from the Mammoth Crossing sites, and it is the newest project with a good quality buildout. Approximate marketing prices for the Limelight are likely to be roughly $1,000,000 per bedroom and will set the upper limit for condominium sales in Mammoth Lakes.The Reserve and the new Lakeview Townhomes lend the strongest support to value for suggested townhome, or chalet style homes, on the R zoned parcel of Site 3.

Prior Year Sales (as of May 2023)
Sales of Mid-Rise units from the Village at Mammoth

Sales of Townhome units near the Village or Sierra Star Golf Course

The Mammoth Condominium Market Condominium Market Mammoth Lakes (As of May 2023)

The Condominium market is an important indicator of value for the Mammoth Crossing District as the highest and best uses for the district are tied to condominium sales. At present the highest and best use for each parcel is a mid-rise condo/hotel product with ground floor commercial, like that seen in the Village at Mammoth. The condominium market is the largest residential market for Mammoth Lakes. Median pricing for condominiums has been increasing over the same period as the single-family home market. This said, increases for condominiums have been more consistent year over year. Because condominiums continue to be the largest sector of the Mammoth Lakes real estate market, they provide an accurate depiction of market attitudes due to the high volume of sales data.
Prices per square foot over the prior 12 months, in the Village District, range from $924 to $1142 per square foot. In 2022, the entire Mammoth Lakes condominium market proved a total of 333 for sales median price of $755,000.

Both Westin and the Village at Mammoth realize the highest occupancy rates in Mammoth Lakes as well as the highest sales prices per square foot. The ongoing issue with the condominium sales market is the lack of inventory. While the inventory has increased in recent months, a consistent inventory of 29 units has been available in Mammoth for 2023. January 2022 saw inventory levels drop as low as three units.

North Village Specific Plan (NVSP)

Mammoth Crossing is located within the North Village Specific Plan (NVSP). The NVSP sits in the northwest portion of Mammoth Lakes consists of 41 separate parcels totaling approximately 64 acres. Since the Specific Plan was adopted in 1991, some consolidation of ownership has occurred, but most of land remains under multiple ownerships. The NVSP is located adjacent to Main Street, Lake Mary Road and Minaret Road. The objective of The NVSP is to create a set of land use designations and development standards which will facilitate the development (or renovation) of “North Village” as a concentrated,pedestrianoriented activity center with limited vehicular access. The North Village development will be oriented toward yearround uses and visitor activity, to strengthen the existing winter visitor market and to improve Mammoth’s attractiveness to spring, summer, and fall resort visitors. Unification of development throughout the Specific Plan Area through the establishment of architectural and landscaping guidelines will strengthen North Village’s image as a resort activity node in Mammoth Lakes. The NVSP focuses on the creation of visitor services and attractions, while emphasizing pedestrian access and mobility. Parcels developed for non-lodging purposes will be oriented toward visitor commercial uses.

Room densities per acre vary for each parcel within the Mammoth Crossing designation; approximately 110 rooms per acre for Site 1, 81 rooms per acre for Site 2 and 61 rooms per acre for Site 3, not to exceed 80 rooms per acre for the aggregate of all sites. Plaza Resort (PR).

2. To provide a complementary pedestrian-oriented node that enhances the overall vitality and critical mass of lodging, retail, dining, and entertainment uses.

3. To provide a well-defined retail frontage with enticing shops and restaurants at ground level along Lake Mary Road, with high visibility from streets and pedestrian linkage corridors.

4. To provide additional parking opportunities through on-street parking and convenient structured parking.

5. To provide attractive public spaces that can serve as venues for visitor activities and events as well as pedestrian circulation.

Land Use Policies

1. Visitor-oriented commercial facilities shall be developed in the Mammoth Crossing district to expand and complement those in the Plaza Resort district, and to contribute to the critical mass of such uses in the North Village as a whole.

2. A range of lodging facilities shall be provided within the district, offering a range of short-stay accommodation choices. The various lodging facilities shall provide a complete range of guest services and amenities that enhance the overall visitor experience and draw visitors to the North Village.

6. The operation of a hotel or condominium hotel (“hotel”)
uses shall include the following services and amenities:

•  Reception area with 24-hour supervised front desk and key disbursement.
•  A central switchboard connecting to all units.
•  Space for rental management operations.
•  The hotel management entity shall have at least five years’ experience in the hotel management business and shall ensure that all portions of the condo/hotel are maintained and operated in accordance with a quality hotel standard.
•  If the units will be sold and not operated in total as a traditional hotel, those units which are sold shall be fully furnished with standardized furniture, fixtures, and equipment at the time of initial sale. Any condominium CC&Rs should require maintenance of standardized
  interior design and furniture so that it is consistent with use as a short-term rental accommodation.
•  Daily housekeeping and linen service.
•  Ski and luggage storage.
•  Participation in any future Town central reservation and booking system.
•  An in-place reservation system. REV. 09/14 23

• Participation in Destination Marketing Organization (membership and/or support).
• o Hotel-operated shuttle service.
• o Room configuration shall complement the proposed uses for the hotel.

7. It is strongly preferred that meeting/conference space included in the Mammoth Crossing sites be consolidated to allow for at least one large conference facility of at least 9,000 square feet.

8. The applicant for future project phases within the MC district shall use commercially reasonable efforts to efficiently use energy during project construction and operation, or as mandated by State or Town regulations. In addition, the project shall implement measures to reduce greenhouse gas emissions to the maximum extent feasible. Such strategies shall be reviewed and approved by the Town with each use permit and building permit.

9. A story pole plan shall be submitted in conjunction with a use permit application for any of the three hotels or other significant new development on the Mammoth Crossing sites. The story pole plan shall be approved by the Town before it may be erected, and shall be used to inform the Town, Planning Commission, and public prior to and during the public hearing for the use permit.

10. Each future development occurring on the Mammoth Crossing sites shall include such on-site and off-site improvements to facilitate pedestrian and bicycle

Sitting at the central-eastern edge of California, Mono County is 108 miles in length, reaching from the Alpine County border to the north to the Inyo County
border to the south. The County’s width is 38 miles from the crest of the mighty Sierras to the Nevada state line to the east. Its land area is 3,030 square miles, 80% of which is federally owned and roughly 5% privately owned.

Much of this land is contained in the Inyo and Toiyabe National Forests. Summer and fall visitors enjoy many activities such as fishing, hunting, camping, hiking and some of the most spectacular scenery found in the Sierra Nevada Mountains. Winter visitors engage in skiing, snowmobiling, cross-country skiing, and other outdoor activities.

These extraordinary mountain boundaries offer precipitous canyons, broad valleys, many crystal-clear lakes of glacial formation and a unique sage brush covered semi-desert land. The Sierra Nevada boundary is dominated by three towering peaks (Mt. Dana, Mt. Lyell, and Castle Peak) which rise to an elevation exceeding 13,000 feet. The county’s drainage is realized by the East and West Walker rivers to the north, the Owens River to the south and many innumerable
Sierra streams.

camping, fishing, and nearby Yosemite National Park are the primary draws of tourism during the late spring, summer, and early fall months. MMSA is the closest major ski resort to Southern California’s 23 million residents which provide approximately 85% of MMSA’s visitors. From a peak elevation of 11,053 feet, MMSA has a vertical drop of 3,100 feet with more than 3,500 acres of skiable terrain. The Mountain’s unusual geography and massive snowfalls, combined with typical California sunshine, create a unique mountain environment. News in 2014/2015 came from the owners of MMSA with the purchase of “Big Bear” and “Snow Summit” ski resorts in Southern California In July of 2017, a new announcement was made indicating MMSA was being purchased by a joint venture (Alterra) between Henry Crown and Company (HCC) and KSL Partners, LLC. Alterra will boast 12 fourseason mountain resorts and approximately six million skier visits, 20,000 skiable acres and significant land available for real estate development. Details on the Joint Venture.

been coordinating with the Federal Aviation Administration (FAA) on a revised Airport Layout Plan (ALP) that will accommodate future air
service needs. The new ALP calls for expanding infratructure development and a 40,000 square foot air terminal, of which the FAA will financially partner with the Town of Mammoth Lakes. For the time being, Mammoth Lakes is being serviced by a regional provider, Advanced Air, servicing McClellan-Palomar Airport, Burbank, and Hawthorne Municiple Airport. See Mammoth’s Air Service Stratigic Plan.

Bishop Air Service

In addition to regional air service into the Mammoth Yosemite Airport, Mammoth will also be offering season air service from United Airlines into Bishop Airport, only 40 minutes from Mammoth Lakes. Details on Air Service to Mammoth Lakes .

Much of what Mammoth has to offer visitors is published though a variety of marketing campaigns. Mammoth’s Visitor Guide is an example of the branding seen by visitors in physical and online format.

Tourism and Town Revenue

Although Mammoth Lakes is known internationally for its skiing and outdoor activities, most of its visitors originate from Southern California. These visitors tend to travel in parties of four people staying an average of three to four days per visit. The winter season captures the greatest visitor spend while summer and fall seasons capture the least. Additional details can be obtained in Mammoth’s Visitor Profile study completed in 2018.

Transient Occupancy Tax (TOT) is the driving financial mechanism for the Town of Mammoth Lakes’ and makes up approximately 58% of the Town’s Major Revenue Components.

Key Revenue Components 2023 –
General Fund Town of Mammoth Lakes

As can be seen from the Adopted Budget for 2022-2023, TOT Revenue makes up approximately 58% of the Town’s revenue, making transient rentals, a key component to the Town’s future.