One Steamboat Place restructures debt
July 8, 2011
Steamboat Springs — Timbers Resorts CEO David Burden said late Friday afternoon that the principals in the One Steamboat Place luxury condo development have invested additional millions to free up unsold inventory and resume marketing the vacation homes adjacent to the Steamboat gondola.
The announcement of the successful restructuring of nearly $100 million in construction loans for One Steamboat Place means the cloud of a foreclosure filing by a consortium of seven lending banks has been removed and his company can begin closing some pending contracts and pursuing new sales at reduced prices.
"We and our investor group have made significant multimillion-dollar capital contributions to continue our forward momentum, as well as arranged financing for prospective owners at One Steamboat Place," Burden said in a release. "With this loan restructure completed, the banks are now fully behind One Steamboat Place. The terms of the modified loan, along with additional capital invested from our partners, have provided a very solid footing for the continued sellout of the remaining units in the project."
One Steamboat Place broke ground in late summer 2007 and continued construction through a record snow winter. It posted $15.25 million in sales during its first round of closings in November 2009. The project includes 80 large condominiums with 38 whole-ownership vacation homes among them.
When news of the foreclosure filing, which did not affect previously sold condos at the project, broke in November 2010, Burden registered surprise. He said he had been negotiating under the thought that progress was being made on revamping the loan. The project, which includes an in-house restaurant and spa for owners, guests and club members, borders the ski slopes at the base of Steamboat. It operated through ski season 2010-11 and gave no outward sign of being troubled. That was again the case when summer visitors returned to Steamboat.
Burden said Friday that the original bank loan already had been substantially reduced when the banks filed their notice of election and demand in November. He predicted at the time that what seemed like a drastic measure would result in a loan modification.
"The original motion for foreclosure that had been made by the banks was not the result of poor performance at One Steamboat Place," Burden said.
— To reach Tom Ross, call 970-871-4205 or email tross@SteamboatToday.com