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Thursday, Mar 28, 2024

Simi Resort May Fly Off

Just a few months after getting entitlements to build a resort at the Hummingbird Nest Ranch, the owner of the unusual Simi Valley property has decided to put it up for sale. The 123-acre site is on the market for $49.5 million, with the brokers at the Beverly Hills office of Sotheby’s International Realty handling the upscale listing. In late April, Simi Valley granted the ranch’s wealthy owner, David Saperstein of Houston, permission to build a hotel, wellness center and spa, conference center and other amenities. The listing surprised city officials who had expected that Saperstein would build the project himself, given that his local development partner said he planned to do so. Saperstein also has owned the property since 1999 and made previous extensive improvements. Simi Valley officials see the planned resort as a key part of the city’s effort to market itself as a tourist destination. “We would love to see it developed as approved. It would be a great amenity for the city and even the region,” said Director of Economic Development Brian Gabler. “It could potentially stay the way it is, but obviously we would be disappointed.” Saperstein, who made his fortune with news and traffic broadcaster Metro Networks, acquired the Santa Susana Mountains horse ranch from Redken Laboratories founder Paula Kent Meehan. He completed $45 million worth of improvements on the property in 2003, including a Spanish villa, cottages, equestrian arena, helicopter pad and lake. The property has been mostly used for weddings and films since Saperstein and his wife divorced in 2006. It was put up for sale once before for upwards of $50 million but later was taken off the market. Dean Kunicki, a Simi Valley consultant who handled the initial development and recent entitlements, did not return calls seeking comment, nor did the brokers at Sotheby’s. But in an interview in June, Kunicki told the Business Journal that he planned to build out the new project for Saperstein in phases over several years. “We really need a space like this here,” he said. “A lot of times we have dignitaries come into town, and where are we supposed to put them? Motel 6?” Alternate uses Currently, filming is a major revenue source for the ranch. In 2005, the second season of “The Biggest Loser” was filmed on site. Since then, the film business has grown to between 20 and 30 productions a year, according to ranch management. In addition, the ranch has hosted at least 60 upscale weddings this year through June. Kaley Cuoco, a star on “The Big Bang Theory” wedded there last New Year’s Eve. A key factor that will determine what price Saperstein could get for the property will be whether the buyer decides to maintain its current uses, close it down for personal use or go forward with the planned resort development. The project is officially entitled for a 105-room hotel, 98 cottages, a conference center capable of hosting 8,000, restaurants, spa, wellness center and more. Currently, the property has 16 guest houses, a 13,000-square-foot Mediterranean mansion and three barns. Kunicki told the Business Journal in June the first phase of the project would include building a restaurant, tennis courts, exercise room and pool. The stables would be converted into the conference center and a 4,000-square-foot administrative services building would be constructed. The second phase would include converting the ranch house into the spa and wellness center with 16 rooms designated for rehab, private suites and private outdoor areas. In addition, 32 of 98 planned guest cottages would be constructed. The hotel and remainder of the cottages could come later. The city recently formed a tourism district to market itself, given that it has a significant attraction to build on: the Ronald Reagan Presidential Foundation and Library. There was excitement about additional development of the ranch. But outside the city, there are mixed feelings about the property and whether any buyer would want to pursue the development. “There’s certainly not a huge need for a resort facility in Simi Valley. It’s not Santa Barbara or on the ocean. It’s not a destination for that kind of thing,” said Adam Christofferson, first vice president and regional manager for Calabasas-based commercial brokerage Marcus & Millichap Inc. “There’s not a very big market for this. It’s going to be a small buyer pool. It would have to be someone with a real creative vision that can see a future that not everyone sees.” Christofferson suggested that other uses for the ranch may be superior, including remaking it as a high-end rehab facility, where potentially famous clients could escape attention. That wouldn’t necessarily require all the planned development. Kunicki had a similar idea this summer, suggesting the property could serve as a hideout after plastic surgery. Bruce Baltin, hospitality consultant and senior vice president at PKF Consulting USA in Los Angeles, said the property does have some potential as a resort. More than that, it’s a unique situation and anything could happen. “We’re starting to see development in the resort side of the business and there could be a market for it because Simi Valley has proximity to the greater L.A. basin,” he said. “But it could be a buyer who wants it for any reason.” Stephen Shapiro, a high-end residential broker at Westside Estate Agency in Beverly Hills, thinks the brokers have their work cut out if they’re looking for a residential buyer. “You’re really looking for the needle in the haystack with that,” he said. “In 35 years, I have never had anyone call me and ask if there’s something in Simi Valley for them. It’s probably going to be a very difficult proposition.” Shapiro said the demand for ranch-like properties in Ventura County is mostly confined to the Hidden Valley area.

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