David Hutchinson’s career in the real estate investment business has evolved over almost thirty years, from scanning the classified ads and calling “For Sale By Owner” signs in the early 1980s to managing structured investments under complex partnerships and special purpose entities today. While transaction sizes and the target markets have expanded with time and experience, Mr. Hutchinson’s strategic approach to acquisition, financing, entitlement and disposition has remained a fundamental constant throughout the value creation process. The chronology of his investments have escalated from a couple of condominiums with an initial value of $50,000 to an acquisition, entitlement and development project with a sellout value of $170 million.
Mr. Hutchinson has a demonstrated ability to navigate through the selection process and recognize under-valued properties, with a diverse understanding of the components that add value. A profitable approach to the general illiquidity of real estate and proper timeframe planning has been key to maintaining successful relationships with partners and investors. Mr. Hutchinson’s ability to create value through entitlement and to ultimately generate scarcity and urgency has been a major driver of liquidity upon disposition. Achieving a large portion of profit at purchase has been a solid fundamental evidenced in a number of Mr. Hutchinson’s transactions. Entitlement modifications and enhancements, driven by an understanding of the marketplace in each individual market, further augment value. If the high-end residential niche is underserved and supply is scarce, entitle high-end lots, plan them and deliver them. Understanding the marketplace is also imperative on the flip side. When it becomes clear that the fundamentals and feasibility of a potential acquisition are untenable, Mr. Hutchinson has always had the foresight and willingness to walk away, and, hindsight shows that virtually all of these discarded deals have been burdensome to other owners.
In thirty years, there have been micro and macro cycles that can only be understood through experience. For example, in the early 1990s, lack of financing created by the S&L crisis brought opportunity to those that could see it and Mr. Hutchinson launched his first large project with equity and non-bank institutional debt. The Valley Club project, centered around the concept that high-end private golf and its amenities would drive demand, created high-end residential lots in an area where none existed. The land raw was $10,000 per acre and, after entitlement and improvements, delivered an average of $250,000 per acre on residential lots. Mr. Hutchinson’s track record is unique in that it is largely hands-on and entrepreneurial, although he has had many sophisticated partners that include large institutions, real estate funds and high net worth individuals. As his company has evolved and grown, this hands-on approach has persevered, and drives all aspects of any investment, from analysis to acquisition, from entitlement through financing, from management through marketing of all end product. The company’s marketing arm oversees the market positioning and disposition of all properties and product, has a sophisticated public relations, image, advertising and promotion department, and oversees brokerage offices in varying locations.
Additionally, David is active within the Sun Valley community. In 1986 he was appointed to the City of Ketchum Planning and Zoning Commission, where he served 8 years and was elected to Chairman. He served two terms on Ketchum City Council, as its President and was appointed Mayor of Ketchum from August 2002 until January 2003. He currently is the president of the Board of the Suns Foundation, a non-profit youth mentoring and fundraising organization focused on Blaine County, Idaho.