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Big Bear Lake is located about a two-hour drive from Los Angeles, nestled into the peaks of the scenic San Bernardino National Forest. This four-season mountain getaway offers everything from summer mountain biking to boating on the 7-mile Big Bear Lake to multiple winter ski resorts to explore.
With an adorable and walkable downtown village area featuring plenty of opportunities to sip, shop, and dine, there’s something here for everyone. I’ve been fortunate to spend a good amount of time in Big Bear, and I can tell you that what sets this town apart is how it feels like a down-to-Earth alternative to some of the more elite mountain towns in SoCal. That said, if it’s luxury you’re after, don’t fret; there are plenty of upscale accommodations in Big Bear where you can feel like royalty, such as the recently reopened and revitalized property, Hotel Marina Riviera, which feels like a dreamy Nordic escape.
However, in this destination with a population of just around 5,000 year-round residents, you won’t ever be judged for going to dinner in jeans and a flannel—”adventure status” overtakes “attire” in priority. Grab a local brew at Big Bear Lake Brewing Company in the heart of Big Bear Village, or a bite at Amangela’s Sandwich & Bagel House with generous portion sizes that will leave you feeling satisfied for hours of afternoon quests. Whether you’re embarking on an epic Jeep Tour, a Pontoon Boat Rental at Pleasure Point Marina, or hitting the slopes at Big Bear Mountain Resort, it’ll be an unforgettable, laid-back mountain vacation.
Which Destination Is the Spot for Me?
DONNELLY, Idaho – It is one thing to invest in the hospitality business for the first time by taking ownership of a struggling condo-resort in Idaho with a lot of perceived upside. It is something altogether different to also take over all operations of a four-season mountain community near Lake Cascade with ski, golf and lake amenities, F&B, meeting and event space, a retail village, as well as manage 500 sold homes where 30% to 35% of owners utilize the rental pool.
That’s where the Miami-based Navarro family is today after spending two years to acquire a struggling Tamarack resort in Donnelly, Idaho, with a fractured ownership structure in 2018 at a steep discount. They have since invested about $250 million of their own capital without any private equity or institutional backing to rebuild and expand from the 200 units when they took over.
The partners at MMG Equity Partners — brothers Gabe and Marcel Navarro and brother-in-law Martin Pico — also strongly believe guests are looking for an easier, hassle-free experience and can only deliver if they own the experience from A to Z.
In unison, managing partners Gabe and Marcel said, “We like to be pretty involved. We’re not a passive capital partners.”
They also own some 40 shopping centers in Florida for the business formed after selling in 2007 a 60% stake in Navarro Pharmacies and a vitamin manufacturer to a PE firm. They together sold both businesses outright – Navarro to CVS and Nutriforce Nutrition to Vitamin Shoppe – in 2014.
The Master Plan Tamarack Resort spans approximately 4,200 acres — 2,124 acres of state-leased land and over 2,000 acres of private property. The family has entitlements to build 2,200 more dwelling units over the next decade, including single-family homes, townhomes, condominiums, hotels, and conference facilities. Fifteen more units are currently under development and the Navarros are also building an 80-unit condo-hotel that will fly Marriott’s Autograph Collection flag in about two to three years in the resort village. They will follow that up with a micro-hotel “Yotel-like crash pad” condo-hotel concept and then a branded luxury condo-hotel.
Longer term, the family would entertain opportunities outside Tamarack, but Gabe said they have more than enough to keep them occupied right now.
The family has revived the Robert Trent Jones Jr. golf course, completed the alpine village, built a Mid-Mountain Lodge and are nearing completion on the first marina on Lake Cascade. Tamarack is also planning 5,000 acres of new ski terrain, positioning it among the nation’s largest resorts. It’s a good thing they have a long-term, generational hold perspective.
Under the Navarros ownership, the family said skier visits are up 250% and real estate values have tripled. They expect the resort piece of the business to be profitable in about 12 months and as occupancy grows, the percentage of units going into the rental pool is expected to break 50%.
Long-term play
No doubt, the learning curve for the family has been steep, but they are still here to talk about it.
“We had challenges with just having people believe in us... It was a very challenging asset that went through bankruptcy. We had to really deliver on the things we said we’re going to deliver,” Gabe explained.
It was also tough to sell real estate when construction was just getting started. “Most people sat back and said, ‘Hey, let’s see if these guys from South Florida do what they say they’re going to do,’” Gabe added. “I would say it was probably the same thing on the senior management side and getting the right team in place took us a few years. We have that now.”
So, the hardest parts are behind the partners. They are past the stigma of the property’s past and starting to demonstrate that they’re delivering on their promises. “Now it’s really just a matter of developing the resort at the pace that the market absorbs,” Marcel added.
As the Navarros looked to increase the pace of development, about six months ago they did an EB-5 raise that was very well received. It was originally planned for $80 million and increased it to $160 million. It is not fully drawn, but it is fully subscribed.
What the family also seems to have on their side is patience – a willingness and ability to have a long-term view.
“Doing the right thing to have long-term success, maybe not short-term financial success, was really important,” Gabe said.
The right model
The condo-hotel model was the clear way to position the property with Gabe suggesting recent hotel developments throughout the Mountain West region are almost all for-sale condos under a flag.
“With the shoulder seasons, you’ll end up on an annualized basis with a high-50s occupancy. So, for-sale condos are really the way to go where they price in the $1,500 per square foot range,” he said.
What the Navarros are also learning is group and event business is what will help drive them toward profitability. In the last 12 months, they have aggressively promoted Tamarack as an event venue for corporates and groups in the Pacific Northwest.
With a full church/chapel at the resort, they do about 50 weddings a year. There are two more meeting and event spaces nearby as well as a new 12,000 square foot Mid-Mountain Lodge and event space on the lot of the golf course.
On top of that, they expect the branded Marriott product will further help drive midweek and group business. “We’re starting to see a lot of growth in that segment, which in the ski resort business is important to drive the midweek and the shoulder season,” Gabe explained, adding they anticipate doubling weddings from the 45 they host during the summer/fall.
Staunchly independent
What the family continues to do with vigor is focus on the customer and best meet the needs of what has increasingly become a family experience.
Surprisingly, the Navarros have come to understand half of their homeowners don’t ski or don’t ski enough to buy a season pass. That makes the four-season piece of the offering extremely important.
“Bring golf back was really important. Our marina is probably equally or more important,” Gabe said, adding that 100 slips will be open for next summer.
What remains on the to-do list is working harder to drive shoulder season business, which they said is an intense focus right now.
At the same time, the family believes being independent is only going to further benefit the business as the build-out continues.
“People are looking for that less-crowded experience that’s easy,” Marcel said. “Folks are getting tired of the mega resorts. Being that fiercely independent resort that we are, and being able to focus on the guest journey, I think it resonates.”
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