One Steamboat Place developers report foreclosure sale reprieve
Timbers Resorts CEO says banks have put off March 16 sale
March 8, 2011
Steamboat Springs — Timbers Resorts CEO David Burden said today that the banks pursuing foreclosure proceedings against the unsold condominiums in One Steamboat Place have postponed a scheduled March 16 public trustee's sale.
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 since 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 acknowledgement 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 said.
The deadline has passed for SV Timbers to file a notice of intent to redeem or cure the unpaid balance with Public Trustee Jeanne Whiddon, meaning the planned foreclosure sale cannot be withdrawn without the banks' agreement.
Whiddon confirmed this afternoon that she had not received any formal notification on a change in the status of the foreclosure proceedings. The Colorado lawyer representing the banks in the foreclosure declined to comment on Burden's e-mail, or to confirm the 30-day extension.
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 on March 16, 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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