Author Archives: DP

Quietly & Carefully?

We suppose our title offers one interpretation of the preceding two years; “secretly and with zero neighborhood input ” might be another way of putting it.

The below invite was sent only to direct abutters, revealing that unlike Mr. Shapiro farther to the south, the Elm Court team still does not grasp the closely knit character of the surrounding neighborhood, an established residential community where everyone knows and watches out for each other; a neighborhood that reached out to Ms. Law numerous times following her purchase, inviting mutually respectful dialogue.

The aspiration “to secure Elm Court’s future in perpetuity” seems a little grandiose under prevailing environmental circumstances; let’s hope that this present ownership, unlike Amstar, understands that such a future must not be secured at the expense of the neighborhood nor the surrounding environment, with all its abundant wildlife.

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A Tale of Two Projects

Remember all that exciting chatter from Linda S. Law about wanting Elm Court to “shine a bright light globally, and be a beacon for Lenox, Stockbridge and the entire Berkshire region.”

Elsewhere she promised, “It is something that will be remarkable for the community. It’s something that is very special and no one else has thought of. I think that we don’t need another wellness and health spa, I can tell you that. Even though everyone wants to do health and wellness, we’ve got plenty in the community. We’re looking at some interesting alternatives. My background has always been in public-private partnerships, always. It has to make everyone happy. But of course, that never happens. But I want both sides happy, not just one.” Law added, ‘I think what we’re cooking up is going to be a killer.’ “ On and on the hype machine churned, while Ms. Law lowered a thick cone of silence between the rotting mansion and the neighborhood in which she intends to do business.

That statement was made in the winter of 2023; yet now, a mere two and a half years later, Ms. Law is singing a rather more familiar song, as recorded in the pages of Town & Country magazine:

“The historic Vanderbilt Berkshires Estate, also known as Elm Court, will soon be a five-star resort. The great-grandson of George Vanderbilt, John Cecil, and real estate developer Linda Law plan to transform the 55,000-square-foot mansion and its 89-acre grounds into a luxury destination with 78 guest suites, 48 individual lodges, and 38 cottages. The project, they say, will preserve the Gilded Age property’s architectural character while introducing more wellness-focused hospitality.”

Wow, what a killer idea! A luxury wellness resort! Who would ever have thought of that? Well, for those with somewhat longer memories, such was the Travaasa vision, as well. Alas, they were unable to find investors willing to add yet another wellness resort to an already saturated Berkshires market. We will save further comment on the market for wellness resorts for another day. We would love to type out the headline:

Elm Court Owner Finally Reaches Out To Neighborhood

We won’t hold our breath.

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In stark contrast, farther south on Old Stockbridge Road, the former Lenox Hunt Club at Overlee, now the Hillcrest Center, has changed hands. The first action (at least from our perspective) from new owner Joseph Shapiro? He reached out to the neighborhood, inviting input and dialogue regarding his plans for a small resort. He listened carefully and with respect.

Whatever doubts we might have about longterm economic viability for the plan, we welcomed Mr. Shapiro’s open, transparent and sincere efforts to be a good member of our shared neighborhood, in harmony with our distinctive & historic character. He was attentive to concerns about lighting, traffic and noise and will work with neighbors to find the best possible way forward.

Since Mr. Shapiro has committed to support and respect our right to the free & peaceful enjoyment of our properties, we will support his vision for a rejuvenated mansion, with renovated dorms providing quality onsite housing for staff. Welcome to Old Stockbridge Road, Joe!

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Let Them Eat Cake

As of today, Linda S. Law and her “team” have still not made any effort to reach out to the neighborhood for open, honest dialogue regarding her “killer” plan to build a large number of luxury villas & condos on the grounds of Elm Court.

She is, however, reaching out to those she apparently feels are more consequential than mere neighbors. As relayed from the website of the Harvard Club of Western Massachusetts:

Alas, there appears to be no such thing as a Free High Tea; tickets are for sale, thus designating the event as a commercial activity:

We note that a cease & desist order issued in 2012 by the Stockbridge Building Inspector remains in effect.

Has Ms. Law received all the relevant permits for her commercial fundraising event, including a one-day liquor license for the “champagne punch”?

Has she made the requisite repairs to assure that members of the public (or at least paying customers with tickets!) are safe & sound while enjoying their “sweet & savory delectables”?

We know for sure that at least some direct abutters have not been properly and respectfully notified. We also know that her preference for secrecy and arrogant disregard for the neighborhood is bound to breed suspicion and distrust.

As we have maintained for over a decade, maximum honesty and transparency are always in the public interest. An owner who cranks up the fog machine, obscured ever more darkly through PR campaigns, does not bode well for this “next chapter”.

Sour Ethers Among the Falling Leaves

What is it about Elm Court (now rebranded as Vanderbilt Berkshires Estate) that seems to bring out lack of transparency from its owners? Is it moldy air inside the mansion, or what?

Primary among our concerns: why, given the acrimony, misinformation and outright hostility that marred the previous chapter of ownership, has Linda S. Law not reached out to the neighborhood, despite several open invitations, made in good faith? Would such dialogue not be in her best interests? Might she not actually learn something about the character of Old Stockbridge Road, and its longtime residents, including those who live on former Gilded Age estates?

First, we relay a Letter to the Editor published in the Berkshire Eagle, written by neighborhood resident, Mr. Wayne Lemanski:

To the editor: As a neighbor of Elm Court, I read with interest Linda Law’s plan to bring a “bright light shining over Lenox.” (“Historic Elm Court has been rebranded Vanderbilt Berkshires Estate. What’s next for the Gilded Age mansion?” Eagle, Oct. 3.)

After purchasing a property that will have a significant impact on a neighborhood, you would think a successful real estate entrepreneur would touch base with the neighbors: introduce yourselves, let neighbors know you plans, how it will effect them and most important to the developer, begin to gain support for the project.

Having owned the property for close to 10 months, the owners have failed to reach out. Lack of neighborhood support killed the Travaasa project, and I would predict Vanderbilt in the Berkshires would face the same outcome. So maybe Linda Law is right to have an extremely pessimistic nature.

Then comes Linda S. Law’s response:

To the editor: As the community recognizes, Elm Court is steeped in a magnificent history over the course of the last 130-plus years.

It has both risen and fallen throughout the decades as a product of both care and neglect. Most recently, Travaasa proposed a plan over the course of 10-plus years that became mired in cost and time and created a groundswell of discontent on Old Stockbridge Road. This discontent was so contentious that emotions became the fuel for litigation that served no one productively.

Our efforts to date have been to carefully and calmly complete a substantive due diligence review on Elm Court’s current conditions while keeping a keen eye on it’s future. (“Historic Elm Court has been rebranded Vanderbilt Berkshires Estate. What’s next for the Gilded Age mansion?” Eagle, Oct. 3.) It remains abundantly clear to those of us who have the courage to rescue such an iconic property that it is essential to first fully understand all of the pressures that face any entity that accepts this responsibility. This process is time consuming.

I appreciate Wayne Lemanski’s point of view and agree that the neighborhood support is an integral component to its success. (“Letter: Elm Court’s new owners should do more community outreach,” Eagle, Oct. 5.) Elm Court’s success will also be ensured if the broader communities of Stockbridge and Lenox continue to be supportive and to partner with us at every opportunity to save this exceptional property. This combined commitment will ensure a pathway forward amidst astronomical costs and hurdles. I promise you, Mr. Lemanski, that your name is on our list when the invitations are extended.

We note there is no longer any pie-flying-through-sky talk of “bright lights” and “global beacons”. No, now there is the harsh reality of “astronomical costs and hurdles.”

Far from something “nobody has thought of before” nor something that is “accretive to the community,” to quote Ms. Law from an earlier sales talk, we are now anticipating a typical intensive residential and rental-unit development designed to squeeze every last dollar from those eighty nine acres and from the rotting manse.

As she also said recently, ‘’I think what we’re cooking up is going to be a killer.” Here we go again.

Something Stirring

Amidst ongoing speculation regarding the future use of Elm Court following the failure of the illusory “Travaasa” scheme to attract a single dollar of investment, and subsequent sale to Linda S. Law, we read the recent report in the Berkshire Edge with interest, particularly the closing paragraph:

“In the press release by Lefkowitz, she wrote that both Law and Peiser were considering opening a luxury resort. During their interview, however, both Law and Lefkowitz would not say what their plans for the property would be. “We have something stirring up that I think is going to happen, but I can’t talk about it yet,” Law said. “It is something that will be remarkable for the community. It’s something that is very special and no one else has thought of. I think that we don’t need another wellness and health spa, I can tell you that. Even though everyone wants to do health and wellness, we’ve got plenty in the community. We’re looking at some interesting alternatives. My background has always been in public-private partnerships, always. It has to make everyone happy. But of course, that never happens. But I want both sides happy, not just one.” Law added, ‘I think what we’re cooking up is going to be a killer.’ “

We agree that the last thing Lenox/Stockbridge needs is yet another luxury “wellness” resort, given that all of the existing options are operating way below capacity. The neighborhood would wholeheartedly welcome and support the sort of creative public/private (and possibly non-profit?) use Ms. Law seems to be hinting at.

As we have noted before, there is precedent for such creative, transformative use of previous Gilded Age Vanderbilt mansions, north on Route 7: Shelburne Farms.

A Sudden Change of Tune

Just a few short weeks ago, new Elm Court owner Linda S. Law, having relieved “Front Yard LLC” of the property, used rather exalted language to describe her plans.

In response to questions from a Berkshire Eagle reporter, she exclaimed that she wanted Elm Court, a sprawling Vanderbilt trophy house dating from the Gilded Age, to “shine a bright light globally, and be a beacon for Lenox, Stockbridge and the entire Berkshire region.”

Here in the neighborhood, having been through the Front Yard (Amstar) chapter marked by years of cynical misrepresentations of their true agenda, we were skeptical, while remaining open to the possibility that Ms. Law might be serious about shining light, through the establishment of some sort of non-profit use, contributing to the public good within the Berkshires and beyond.

In fact, within the very same Vanderbilt family, there is a visionary, thriving precedent for such benevolent use on the shores of Lake Champlain: Shelburne Farms, now a globally recognized center for place-based, sustainable education and regenerative agriculture. Possibly, Elm Court might shine a similar sort of bright light here in the Berkshires?

Alas, according to recent reporting in the New York Post, Ms. Law appears to have changed her tune. She now claims to be “talking with three different resort companies about managing the property,” and wants ” to add more amenities,” such as “a speakeasy, a movie theater and a place for gardening classes to honor the gardening legacy.” The basement will also offer a variety of pampering services within a 15,000-square-foot spa. In other words: same old, same old.

To be sure, we take any story published in the New York Post with a boulder-sized grain of salt. Yet according to our own sources, the new owner has yet to reach out to the Stockbridge Board of Selectman nor to the surrounding neighborhood. Not good signs, regarding attention to the public interest. Not good signs at all. Here we go again?

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Fresh Vision

As reported recently in the Berkshire Eagle, “Front Yard LLC” (Amstar) has finally managed to attract a buyer for its distressed Elm Court property, for the exact amount of the promissory note (0% APR!) that had been held by Elm Court Realty LLC (Robert and Sonya Berle) since 2012: $8,000,000.

So ends the sad chapter of “cradle to grave” (their term, not ours) real estate speculators, and their ill-fated attempt to steamroll a neighborhood while bamboozling local boards with the tantalizing promise of joining a lucrative “world class wellness resort brand” that sounds like a spin-off from The White Lotus: Travaasa.

Where is Travaasa now? Maui, sold. Austin, sold. Berkshires, finally sold. Their tacky plan to attract investors for what was essentially a generic four-story motel using the disintegrating mansion as a Gilded Age fig leaf finally fades to black. It seems that sometimes you get the cradle, and sometimes the grave.

Now comes Linda Law, a new owner with a fresh & promising vision, an investor with experience in restoration and renovation (Blantyre), one who clearly treasures the historic character and cultural legacy of the Berkshires. She speaks of conducting extensive architectural research, and of a deeply felt duty of care. She also expresses the aspiration to recover “vibrancy,” and suggests a use that is “accretive to the community”. As a primary goal, she wants Elm Court to “shine a bright light globally, and be a beacon for Lenox, Stockbridge and the entire Berkshire region.”

Following the grim saga of Amstar, we welcome such a vivid and positive vision, and hope that she sees our neighborhood (her new neighbors) as potential sources of creativity, collaboration and support. Nobody cares about the distinctive character and rich history of Old Stockbridge Road more than the people who live here.

As for beacons of light during our deepening climate emergency, for further inspiration she may want to research the extraordinary non-profit Shelburne Farms, sited along the shores of Lake Champlain, once owned by a different set of heirs to the same Robber Baron fortune, and now the highly respected global leader in place-based, farm-based and sustainability education .

As relayed from their website:

Shelburne Farms is an education nonprofit on a mission to inspire and cultivate learning for a sustainable future. We believe that transformative learning experiences sow the seeds for a thriving and more just world. Our work seeks to create the space, spark the conversations, and share the stories to inspire educators, students, and learners of all ages to build a better future for everyone.

Sounds eminently “Berkshires” to us!

THE INN AT SHELBURNE FARMS

A New Chapter

As we have long predicted, “Front Yard LLC” has not been able to find investment capital for the implementation of a resort plan that made no sense from day one; a plan unsupported by market research and hospitality industry trends, even before the pandemic. Thus it has now been put up for sale as a private residence.

To recapitulate for new readers of this blog, including potential buyers:

Front Yard LLC is an investment shell within private equity real estate corporation Amstar. Amstar has never been a resort developer; they are a self-described “cradle to grave” fund that generates most of its return on exit.

The Travaasa brand was simply “feel good” smoke generated to enhance value in the short term and maximize profit on exit. Where is Travaasa now? Sold.

And what about the President of Travaasa Adam Hawthorne, who assured local boards during countless meetings of his firm commitment to build a global upscale wellness brand that would thrive for decades to come? Well, at least he is still at Amstar, though no longer any mention of Travaasa.

Also of interest: According to the Registry of Deeds, Elm Court LLC (the previous owners) still holds a promissory note for $8 million at 0% APR; the note has not been discharged.

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The neighborhood would of course extend a warm and grateful welcome to a new owner willing to undertake a responsible and environmentally sensitive renovation and restoration of the estate. If that is only feasible/sustainable within a vastly reduced footprint for the rambling pile at its heart, so be it! As we have stated from day one, we would also welcome and support a limited residential development such as Winden Hill or Bishop Estate.

We urge any potential buyer or investor to approach the neighborhood in a spirit of open and respectful dialogue, keeping in mind that we are an established & closely-knit neighborhood looking to retain the special qualities and historic character of Old Stockbridge Road.

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Elm Court Investors

Both the Stockbridge and Lenox Zoning Boards recently approved extensions to the special permit granted to Front Yard LLC for the creation of a “Travaasa”-branded resort on the property. At those meetings, as reported by the Berkshire Eagle, an attorney representing the applicant alluded to delays caused by litigation filed by owners of neighboring properties; increased material prices; and the “complexity” of the project.

We have a few other ideas why investors may be leery of throwing money into the potentially bottomless money pit at Elm Court:

I The project makes no economic sense. There is already existing over-capacity in the Berkshire hospitality industry. The expansion at Cranwell/Miraval will certainly put increased pressure on the industry, above all in the market segment targeted by Amstar/Travaasa. Demographic trends also pressure the market, with younger generations staying away from “destination resorts”, expressing preferences for Airbnb, glamping or smaller inns touch as Tourists in North Adams. In turn, older guests prefer the familiar traditional choices such as Blantyre, Wheatleigh and the Red Lion, all of which are running well below capacity. Then there are Canyon Ranch and Kripalu in the “Wellness” category to which Travaasa also aspires: formidable, established competition, with recently expanded capacity presently not being filled. Where is the market for Elm Court “Travaasa”? We don’t know, because Front Yard never made their case for economic viability during any of their appearances before local boards.

II. The risks and costs associated with the promised “extensive renovation” of the existing Elm Court mansion are unknown. Are there serious lead paint and asbestos issues? Are the foundations for the wings structurally sound? Do other aspects of the rotting mansion retain structural integrity, or will it become necessary to essentially rebuild a sprawling Gilded Age trophy house? If that is the case, then why build a four-story big box right next to the “renovated” sprawling mansion, with all the associated costs of new construction?

III. In order to obtain the special permits, the Amstar CEO at the time, Mr. Gabe Finke, promised to pay for both extensive municipal infrastructure (a complicated and expensive sewage connection as well as water upgrades), together with a sidewalk that would run from Elm Court to the town of Lenox, a sidewalk that many — if not most — of the impacted properties oppose. What are the risks and costs associated with this work? Here again, no specificity was provided regarding the budget nor engineering for these promised improvements in any of Front Yard’s appearances before local planning boards. Investors would need to carefully evaluate how these substantial risks and hidden costs might negatively impact their return.

IV. Front yard/ Amstar has no development experience for a property of this size — or any size! Zero. They are a “cradle to grave” fund that buys properties, tries through a variety of strategies to add value to those properties, and then sell to the highest bidder. They make their money on the exit. Do investors trust Front Yard LLC and Travaasa — a brand now limited to a single operating property, in Hawaii — to manage a major development project such as this? Obviously, they would need a development partner; but would any experienced developer be willing to assume the many known unknowns and unknown unknowns associated with this project? Amstar/Front Yard are promising a return of 7 or 8 percent based on 60 to 70 percent occupancy. Everyone has a dream, but are these numbers even remotely grounded in reality?

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Obviously, there are future uses for the property that would make economic sense, and that the neighborhood would support. For example, the rotting wings could be removed, leaving the original (and far more architecturally distinguished) core of the residence as a small, boutique luxury inn. Such an Inn would be the heart of a limited residential development along the lines of nearby Bishop Estate, with most of the land held in common, and managed by an HOA. Canyon Ranch has struggled to sell its two million dollar condos, but the market for second homes, above all in prime locations such as Old Stockbridge Road, remains strong. As many of us who live here have submitted from the start of this long process, a reasonable, low impact use would be welcomed and supported. The existing plan, a plan that adds a second huge structure directly next door to what was once the largest private residence in North America in a market already saturated with resorts, hotels and other options, is just plain silly. No wonder the Front Yard attorney reports “difficulties” in rounding up investors!

As We Predicted

From the recent edition of “Travel Weekly”:

Miraval Group has acquired the Travaasa Austin Resort from Amstar Group and will spend the next two years expanding and redeveloping the 220-acre property into what will become the Miraval Austin.

Miraval will increase the hotel’s room count to 120 from 70, expand the property’s main restaurant and more the double the spa space. Miraval plans to finish the redevelopment in January 2019.

Miraval, which operates its eponymous resort in Tucson, Ariz., earlier this year took over spa operations at Southern California’s Monarch Beach Resort as part of its expansion plans for its Life in Balance Spa brand. Miraval also said this year that it will redevelop the Cranwell Resort in western Massachusetts.

As opponents of the Dumb Growth project to “save” a rotting Gilded Age mansion by building a massive new big box franchise-style hotel have stated from the start: Amstar, the Otto Happel family office real estate portfolio, is not in the hospitality business.

Amstar buys and sells commercial properties. Most of their total return is generated in the exit strategy, also known as “the grave”. Main investor Otto Happel may eventually decide to exit the “Travaasa wellness” brand entirely; then what happens with Elm Court?

In our opinion, bamboozled by unrealistic promises of tax revenues, boards in the towns of Stockbridge and Lenox failed to grasp what was behind the bizarre idea of using a derelict mansion as a fig leaf for a Courtyard By Mariott or Hilton Gardens, or whatever is at the end of the exit ramp when Amstar dumps the property. Let us hope that Amstar investor Otto Happel has a closer look at the project and concludes that building a project in a neighborhood overwhelmingly opposed to the idea is just plain bad business.

The purchaser of the Travaasa “flagship” in Austin, Miraval, recently purchased the nearby Cranwell resort, slated for significant expansion during 2017. With massive development also proposed for the former Desisto property across the town boundary in Stockbridge, we ask once again: how is any of this sustainable? Dumb Growth compounds to absurdity and then inevitably collapses.