One Steamboat Place debt restructuring deal expected by Friday
Debt plan in works for One Steamboat Place, CEO says
July 6, 2011
Steamboat Springs — One Steamboat Place is poised to move beyond foreclosure, according to the project's developer.
Timbers Resorts CEO David Burden confirmed Wednesday that a deal for the restructuring of nearly $100 million in construction debt on the One Steamboat Place slopeside condominium project at Steamboat Ski Area could be announced as soon as this morning.
The unsold luxury condominiums at One Steamboat Place have been the subject of foreclosure proceedings filed by WestLB AG on behalf of seven lenders since November.
"It's a full resolution of the financial aspects of the project, and it's all very, very good, but it's not done yet," Burden said. "It's our job to get it done in the next two days."
Carbondale-based Timbers Resorts led the development of One Steamboat Place on behalf of a group of investors, including some from Colorado. It has continued to manage the property, where condominiums reportedly were full during the Fourth of July weekend.
Burden said Timbers Resorts already has signed an agreement to remain in place as the management company of record after the project emerges from foreclosure.
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Burden said the restructuring of the debt is over "many, many years," and he confirmed that reduced pricing for the condominiums that sell as whole-ownership and interval units is part of the deal. He declined to divulge asking prices until a formal announcement of the restructuring is released.
However, news of the new pricing was circulating among Steamboat Realtors on Wednesday afternoon.
Jon Wade, of Colorado Group Realty, said his source reported that going forward, four-bedroom units would start at asking prices of $1.65 million, and three-bedroom units would start at $1.4 million. One-twelfth fractional shares will start at $220,000, his source told him. The one-eighth share units can be had for $330,000 with the option of forgoing a membership at Catamount Ranch and Club (including golf) for a discount of $20,000.
"I think it's attractive pricing, and a lot of people will look carefully at it," Wade said. "We'll know more when we see the whole announcement. Having One Steamboat Place moving forward is a great step for us as the Steamboat market recovers."
Pam Vanatta, of Prudential Steamboat Realty, said the possibility that the investors in One Steamboat Place would not be able to modify their loan never entered her thought process. Given the difficult lending market, she expressed the hope that an announcement of the deal would include in-house financing for the purchase of the condominiums.
"I think people have been wanting to see what happens with One Steamboat Place, and this would validate it," Vanatta said. "Any positive news right now influences people's thinking, and who wouldn't want to be there?"
Vanatta added that any new investors who might have come into the project got a good deal.
The largest penthouse condominiums at One Steamboat Place sold for more than $3 million and $4 million in 2008 and 2009.
Realtor David Baldinger Jr., of Steamboat Village Brokers, said he thinks that the market perception of One Steamboat Place still is high but that the return of unsold inventory to the market will help to remove uncertainty about values. He expects there are prospective buyers who have been waiting for a sign that the project's future has stabilized.
"The market has been waiting until the financing was resolved, so it's hard to test demand," Baldinger Jr. said. "But it's one of the showplaces of Steamboat."
Burden said he originally expected the deal to be completed Wednesday, but with the afternoon growing long in New York, where the details are being worked out, he expected the work to carry over to Thursday and possibly Friday.
— To reach Tom Ross, call 970-871-4205 or email tross@SteamboatToday.com
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