Issue link: http://winesandvines.uberflip.com/i/80303
MANA GEMENT Real Estate Interview ED STEINBECK R ealtor Ed Steinbeck's fam- ily has lived and farmed in the Paso Robles, Calif., area since the 1880s. Steinbeck grew up on the family farm on the east side of Paso at a property that is now a well-known vineyard, Steinbeck Vineyards, farmed by Ed's brother Howie. After graduating in 1971 from Cal Poly in San Luis Obispo with a degree in city and regional planning, Ed Stein- beck left the area for a time and worked in Sonoma County as a county planner as well as planning and building direc- tor for the city of Sonoma. He returned home in 1989 and went into the real estate business. He's currently a broker associate with RE/MAX Parkside Real Estate in Paso Robles and has handled a number of vineyard and winery sales in the area. Steinbeck is also a member of the Paso Robles City Council. Wines & Vines: What sort of vineyards and wineries are on the market these days in Paso Robles? Ed Steinbeck: There are 10 wineries of varying sizes on the active market (multi- ple listing service) in the Paso Robles area at the present time. They are spread fairly evenly in the region and range in asking price from $1.95 million to more than $8 million. Permitted sizes range from 5,000 cases per year to more than 20,000 cases per year. Some have excellent loca- tions and facilities for events, and others have a tasting room only. Some are newer, being built in the past five years, and some are more than 25 years old. About a dozen vineyard properties are currently on the market, most with some type of residence. There are three that have very nice homes and some produc- ing vineyard that could be classified as lifestyle properties. W&V: Have sales picked up in the area? What about prices? 58 WINES & VINES SEPTEMBER 2012 Central Coast native shares insights about winery, vineyard sales By Laurie Daniel of grapes that sold for around $585,000; it was originally priced at $725,000. Another parcel of 38 acres with about 33 acres of vines was listed for $1.5 mil- lion and sold for $1.25 million. A third parcel of 10 acres located on the east side, developed with about 9 acres of vines, was listed for $460,000 and sold for $375,000. Paso Robles city councilman Ed Steinbeck has roots in the area's farming history. "Prices are being adjusted to sell on developed vineyards and also seem to be slipping a bit for winery properties." —Realtor Ed Steinbeck Steinbeck: We have more buyers look- ing for both winery properties and devel- oped vineyards this year than last. There have been three sales of homes with established vineyards during the past couple of months, and there are three on the active market. Sales included a 10- acre parcel on the west side with 7 acres Prices are being adjusted to sell on developed vineyards and also seem to be slipping a bit for winery properties. One winery on the current market, for example, recently reduced the asking price by $2 million—more than a 20% reduc- tion. Some of the other winery properties are well priced, some are more aggres- sively priced. Out of the 10 listed on our MLS, two are in foreclosure. W&V: "Lifestyle" buyers largely disap- peared from the market during the reces- sion. Have they started to return? Steinbeck: We have many more lifestyle buyers looking for properties than last year at this time. Most are looking for a nice home with a few acres of vines. Most do not want to work their vine- yards, instead relying on a vineyard care- taker. Some want to be actively involved in the farming operation. A typical property would be 10 or so acres with a newer home of between 3,000 and 6,000 square feet with a great view. Most of the acreage not used for the home site would be developed with vines. This type of buyer is usually in the range of $750,000 to $3 million. Most lifestyle buyers have visited the area in the recent past and have come back more than once to visit their favorite wineries and restaurants. While visiting, they check out the local real estate market and sometimes end up buying into their dream property. Most will eventually make the full-time move, and others will look at a property as a place to visit and entertain friends.