Market Sharing with Damion Matthews: PART 2

EDITOR'S NOTE: This is PART 2 of our "Market Sharing" Q&A series with Damion Matthews, a luxury real estate agent in San Francisco and editor of SFLuxe.com. If you missed PART 1, you can read it here.

The Elan Report: Where do you see the luxury market in the city heading in the next year?

Damion Matthews: San Francisco's luxury market has remained relatively sheltered from all the housing issues of the past few years. Prices have fallen, of course, but sale activity has remained steady. I don't see activity either rising or falling in any dramatic fashion, and I don't see sudden shifts occurring in pricing either.

TER: What amenities are your affluent clients looking for in a vacation home?

DM: Views are always number one. If the residence doesn't have a major view, forget about it. After that, they want to be close to the downtown area and really feel like they're in the middle of all the action.

TER: What makes Alta Collina so unusual as a fractional residence?

DM: The first thing I saw when I walked into the home was the bay. It was a clear, sunny day, and the bay was just mesmerizing.

Even though I've lived in the city my entire life, I still took a minute to stop what I was doing and enjoy the view. There's just nothing like it in the United States! You're in the heart of San Francisco, right at the base of Coit Tower, and yet when you go out to one of the balconies, you feel as if you're in a secluded Mediterranean resort.

TER: Who do you see as your ideal buyer of Alta Collina?

DM: That's a tough question because I believe a wide variety of people will enjoy it. I will say that the beautiful setting of the home makes it ideal for anyone looking for a romantic vacation.

Market Sharing with Damion Matthews: PART 1

Damion Matthews of Engel & Völkers in San Francisco is one of the city's rising stars in the luxury real estate market. He is also editor ofSFLuxe.com, a website that celebrates luxury living in San Francisco. Recently, The Élan Collection joined forces with the chic, cool and tech-savvy Matthews to market the Alta Collina residence in San Francisco's upscale Telegraph Hill. We asked him to give us the inside scoop about the city as a metropolitan vacation destination for our "Market Sharing" Q&A series. Here's Part 1 of the Q&A:

The Élan Report: What makes San Francisco such a unique vacation home market?

Damion Matthews: I always marvel at how San Francisco has something for absolutely everyone. You can easily create your experience of the area to match whatever your lifestyle is. If you want to be cosmopolitan, we have fantastic theaters, nightclubs, restaurants and shopping. If you want to be outdoorsy, we have hiking, surfing, biking, skiing, flying. If you want to be totally relaxed, we have countless spas and opportunities for romantic wine country excursions. We have the nation's best sports teams, some of the most important museums, the leading businesses in the world, a wonderful zoo and lots of kids' attractions, plus glamorous social events for the adults. I mean, there's just always something new and fun to do!

TER: Recently, Fractional Life reported 65 percent of overseas investors have expressed interest in fractional investments this year. Do you see fractional home ownership growing in metropolitan locations like San Francisco?

DM: Oh, absolutely! It's a relatively new concept for San Francisco, but with the high prices that premiere properties command in the area, fractional ownership is exciting to people who love the area but are weary of investing several million dollars into a home they won't use full-time.

TER: If a client was choosing between a pied-à-terre in New York or San Francisco, what would you tell them to ultimately sell them on S.F.?

DM: Ah, the New York versus San Francisco debate! I love it! A lot of people simply have residences in both cities. But it depends on their lifestyle. With so many people needing to do business in the Silicon Valley or in Asia, a San Francisco pied-a-terre is a necessity for a lot of people.

TER: What's your best advice for purchasing a fractional residence in San Francisco?

DM: Buying a vacation property is one of the rare instances when you can actually not feel guilty about letting your emotions guide your purchase. You want to be excited about the place! If you walk in and have that "wow" feeling, then it's the right place. And not just from an emotional standpoint, but from an investment standpoint...because if you decide to sell it later on, your potential buyers will feel the same way about it that you do.

Stay tuned for PART 2 of Matthews' interview tomorrow...

Market Sharing with Marti Gellens

Marti Gellens knows La Jolla's luxury housing market front, back and sideways. In the past ten years, she (along with mom and real estate partner Maxine Gellens) has closed $1.2 billion in real estate sales and recently joined forces with The Elan Collection to market "Casa del Mar," a breathtaking 4,000-square-foot oceanfront property in La Jolla, Calif. For our ”Market Sharing” series, we asked Marti to share her insights on her hometown, the local luxury housing market and what makes Casa del Mar such a desirable vacation home.

The Elan Report: Why is La Jolla such a desirable vacation spot?

Marti Gellens: It’s not only a great place to vacation, but it’s a great place to live because it feels like you are on vacation. The climate is never too hot and never too cold; the views are unbelievable; and there is so much shopping, great restaurants and different kinds of beaches. It’s like the French Riviera…La Jolla has a very European feel.

TER: What are the most popular amenities your affluent clients ask for?

MG: In general, they prefer homes that are newer. They also want big master bedroom and big closets. If it’s a second home purchase, they want to be on the ocean, near the ocean, or close to town… those are the qualities that are really important to them.

TER: So, how much does a view really play into a purchase decision for a vacation home?

It’s huge. If someone wants a vacation home in La Jolla, they usually want a view.

TER: Where do your clients typically come from?

MG: We have many buyers from Texas, Nevada and Arizona, who want to escape the summer heat. They usually start arriving in June. When it comes to buying second homes, we also have a heavy influx of Canadian buyers.

TER: What’s ahead for the overall luxury market in La Jolla?

MG: La Jolla will always be a destination spot. Although all markets have struggled in this recession, vacation destinations like La Jolla are usually the first to turn around. In 2010, we’re already starting to see a comeback in sales in the overall housing market. We are very much looking forward to our summer buying season starting in June.

TER: Describe the best elements of Casa del Mar for us.

MG: The architecture of the house is spectacular, and it’s located right on the ocean with a pool—which is very difficult to obtain today. The master bedroom with the glass upper deck is a very unique feature—perfect for enjoying the views. And, Casa del Mar also has wonderful outdoor entertaining spaces on both the ocean side and non-ocean side.

TER: Why is it a good opportunity in your mind?

MG: There is only so much oceanfront property here. When the market turns around, oceanfront real estate will see the biggest and quickest upswing. It’s the best place to invest your money. As far as the fractional opportunities offered through The Elan Collection, it’s a great way to own a piece of La Jolla oceanfront for a fraction of the cost. Most people who purchase second homes don’t typically use them like they think they will. We think 4 to 6 weeks a year is the perfect amount of time to enjoy a vacation home.

Market Sharing: A Q&A with Montana’s Cathy Gorman, Élan Residence Specialist

For our second ”Market Sharing” Q&A series, we invited Cathy Gorman, 20-year real estate veteran and Élan Residence Specialist in Big Sky, Montana, to share her thoughts on the local luxury housing market and what makes The Big EZ Lodge such a standout vacation property in The Élan Collection.

What makes Big Sky such a unique vacation destination in your mind?

The Big Sky area stands out as Montana’s finest recreational area. The fact that this corner of Montana is extremely beautiful, with vast wilderness areas and a sparse human population makes it very special. The Big Sky area offers the “Biggest Skiing in America” at Moonlight Basin Ranch and Big Sky Resort, without the crowds typically found at other ski r

esorts. In addition, the area has two private resorts, The Yellowstone Club and The Club at Spanish Peaks. Other outdoor activities include fly fishing in one of three blue ribbon trout fisheries, whitewater rafting, Nordic skiing, snowmobiling, hiking, camping, mountain biking, horseback riding, climbing, hunting, golf and tennis. Wildlife abounds as big game mammals migrate in and out of Yellowstone National Park, just 12 miles south of Big Sky.

Can you tell us a little about The Big EZ Lodge? Why is it a trophy property in your opinion?

The Big EZ property sits on 60 acres in saddle facing East and South with sweeping views of the Gallatin Range and the Spanish Peaks. The Big EZ Lodge was designed by Montana’s premier architect and built from log and stone by two true craftsmen. The fact that no expense was spared in any aspect of the property is evident from the moment you drive through the gate to the moment you step inside the lodge. The property is truly ideal for use as a corporate retreat or as a family compound.

Why are you optimistic about selling fractional shares at The Big EZ Lodge?

It is true that second homeowners rarely spend more than a month each year enjoying their investment. In this economy, the concept of shared ownership will be attractive because it means shared financial responsibility as well. To only have to pay for the time you spend at your vacation home is very attractive.

Where do you think potential owner-members at The Big EZ Lodge will come from?

Geographically, I think they will come from the West Coast, the South—particularly Florida, Georgia and Texas, as well as New England and Minnesota.

Where do you see the luxury market in Big Sky heading in the next two years?

I think that we will see a slow return of the luxury market of five years ago. I believe that the high-end buyers will come back to the Big Sky area because it is such special place. Instead of investors, we will see buyers who come for the love of the area and the quality of life that is unique to Big Sky.