Saturday, January 23, 2010
Steamboat Springs Developers of The Highmark condominium project at the base of Steamboat Ski Area announced plans this week to offer 15 unsold units in the building at auction March 4.
The property is owned by Steamboat Ventures Ltd., which includes principals in Concord Wilshire Partners of Los Angeles, which has been active in development in Florida and Las Vegas.
William Bone, president of the National Auction Group in Gadsen, Ala., said the owners’ intent is to sell one of the 15 condominiums with no minimum price but with reserves on the remaining units.
“Typically, it’s the first unit that sells at absolute auction, and you’d just offer the successful bidder his choice,” Bone said Friday. “In this case, I’m not certain how they want to do it. They really intend to sell all 15.”
The last reported sales of condominiums at The Highmark came in February 2008 before the national real estate crisis was fully realized. A four-bedroom den and loft penthouse unit sold for nearly $3.2 million. The sales price converted to $1,329 per square foot, and at the time was the most paid on that basis for a residential property in Routt County. There was also a nearly $2.4 million sale that same month.
Construction on the project, known at the time as The Chadwick, began in August 2003, but the foundation was abandoned after the original developer said rising construction costs had busted his business plan.
Work on the building did not resume until September 2005, after the city of Steamboat Springs approved changes to the development plan to allow value engineering. Concord Wilshire took over the project in 2005, reportedly rid itself of some pre-existing contracts and announced that it had pre-sold 17 condos at new prices and listed seven more for sale with an aggregate listing value of $13.3 million.
The building was completed in June 2007.
The developers sued to force seven contracted buyers to close on the sale of their units in December 2007. An attorney representing the defendants countered that the plaintiffs were disingenuously attempting to force his clients into defaulting in order to re-market the condos at higher prices.
The suit was settled in March 2008.
Since then, the six-story condominium tower has been managed as a boutique hotel.
The management is quoting a nightly rental rate of $1,100 for a four-night stay in a three-bedroom condo in mid-February.
The property offers an indoor/outdoor swimming pool, a lobby with a lounge and stone fireplace, game rooms and storage for ski equipment and bikes.
The auctioneers report that the units will be sold furnished. The property will be open for inspection by appointment beginning Feb. 12 by calling 800-650-0882. Auction and registration terms and financial requirements may be found at national-auction.com. The live auction begins at 3 p.m. March 4.