Developers for One Steamboat Place gain reprieve
Timbers CEO: One Steamboat Place foreclosure sale postponed
Timbers Resorts CEO David Burden said Tuesday that the banks pursuing foreclosure proceedings against the unsold condominiums in One Steamboat Place have postponed a scheduled March 16 public trustee’s sale.
Routt County Public Trustee Jeanne Whiddon confirmed Wednesday morning that she received formal notification that the sale has been postponed until April 13.
A group of seven banks that lent $165 million to SV Timbers Steamboat LLC in October 2007 to build the 465,000-square-foot project foreclosed on $100.5 million in unpaid debt in November. The unpaid balance has been reduced to $99.7 million.
“We thought that you should know that the banking group for the balance of the loan on the remaining inventory at One Steamboat Place has agreed today to extend their deadline another 30 days in acknowledgment of the ongoing negotiations with our investment group for a longer term extension,” Burden wrote in an e-mail.
The extension of the sale date at least would put off the possibility that the seven lending banks would take ownership of the unsold luxury condominiums in One Steamboat Place. They are adjacent to the gondola at the base of Steamboat Ski Area.
Burden wrote that he expects the extension to turn into a longer-lasting resolution of the notice of election and demand, or foreclosure notice, filed late last year.
“The One Steamboat Place investment group remains optimistic that a longer term extension will be achieved with the banking group, and when that happens they will be contributing several million dollars more to the property’s operations plus providing financing for prospective purchasers,” Burden wrote.
The deadline has passed for SV Timbers to file a notice of intent to redeem or cure the unpaid balance with Whiddon, meaning the planned foreclosure sale cannot be withdrawn without the banks’ agreement.
The New York branch of a German banking corporation WestLB AG holds the largest share of the outstanding debt — about $58 million.
The condominiums that have already sold at One Steamboat Place, as well as the owners’ common areas, are not subject to the foreclosure. Burden said there are more sales in the pipeline.
In theory, if the trustee’s sale were to go ahead April 13, other parties could bid to claim the unsold condominiums. A more likely outcome to the sale is that the banks would gain title to the condos.
— To reach Tom Ross, call 970-871-4205 or e-mail tross@SteamboatToday.com
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