Foreclosure sale of One Steamboat Place again delayed
For 6th time, sale is delayed as investors work toward resolution
Steamboat Springs — Routt County Public Trustee Jeanne Whiddon confirmed Wednesday that the scheduled foreclosure sale of the remaining unsold luxury condominium units at One Steamboat Place has been postponed for the sixth time, this time until June 29.
A consortium of seven banks filed foreclosure proceedings on the developers of One Steamboat Place in November for nonpayment of $100 million in original construction loans.
One Steamboat Place has continued to operate as a resort lodging property for both owners and guests, and was busy throughout the 2010-11 ski season. The managers of the property say it has a strong homeowners association.
As the original foreclosure sale date loomed in the third week in March, a spokesman for the developers, SV Timbers LLC, said the investors were in serious negotiations with the lenders.
David Burden of Timbers Resorts, which led the construction and continues to manage the property, said in November that SV Timbers included two multibillion-dollar companies with $50 million in non-debt equity in the project they had no intention of abandoning.
“I’m positive we’re working this out. My partners are willing to invest many (additional) millions, but only on certain terms. … We’re very confident we’ll get this loan restructured,” Burden said last year.
Whiddon said Wednesday that in theory, the series of postponed sale dates could stretch into next year. The deadline for the lenders to either withdraw their notice of election demand, which constitutes a foreclosure filing, or take the property through to a foreclosure sale is March 16, 2012. Most often, the result of such a sale is that the lenders regain control of the unsold property.
A bank in Germany with New York offices, West LB AG, held the biggest share of the debt at the time of the foreclosure filing at about $58 million. The same bank originally loaned Timbers $130 million in a “global note” in October 2007 and promptly began spinning off portions of that debt to other banks, including Western Slope bank group Alpine Bank, which is one of the creditors listed in the foreclosure filing with $25 million of the development’s debt. Others are CoBiz Bank, $15 million; TD Banknorth, $20 million; MT&SB, $10 million; RBA, $7 million; and Morgan Stanley, $30 million.
Sales since November have reduced the outstanding balance on the construction loan to less than $100 million.
The last developer’s sale at One Steamboat Place was recorded on April 8.
— To reach Tom Ross, call 970-871-4205 or email tross@SteamboatToday.com
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