Steamboat’s Trailhead Lodge foreclosure continued
September 2, 2011
Steamboat Springs — Routt County Public Trustee Jeanne Whiddon confirmed Friday that the foreclosure sale of Trailhead Lodge at Wildhorse Meadows has been pushed back a week from Wednesday to Sept. 14.
Bank of America filed foreclosure proceedings on Trailhead Lodge at Wildhorse Meadows, a luxury condominium project near the base of Steamboat Ski Area, in May.
The action affects the remaining 57 unsold luxury condominiums in Trailhead Lodge and not the 27 residential units that have sold.
Documents contained in the notice of election and demand filed at the Routt County Courthouse show that the outstanding balance on a Bank of America loan of $57.36 million stood at $41.74 million. Alpine Bank also has a piece of the debt. The original construction debt was extended by LaSalle Bank and acquired by Bank of America through a merger.
Brent Pearson, chief financial officer and principal in Resort Ventures West, the development entity that oversaw the city permit process, said in May, "What happened to Trailhead is the same thing that happened to every condominium project that launched in 2007. Given the circumstances, this is good for Trailhead Lodge and very good for the overall Steamboat market. Trailhead needs to go through this process."
Trailhead Lodge is a $71 million condominium project (including land costs) that broke ground in summer 2007. The five-story building comprises 184,000 square feet. A July 2007 sales event saw 62 of 86 condominiums go under contract with an aggregate value of $56 million. However, the majority of those contracts did not close.
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In all, 27 residential and one commercial condominium sold at Trailhead. One-bedroom condos in the lodge sold for prices from $575,000 to $750,000, and two-bedroom units sold into the high $900,000 range. At the higher end, for example, a three-bedroom, four-bath condo sold for $1.45 million in 2009.
Pearson said the foreclosure sale date set a process in motion.
"It means the recapitalization ticker has begun ticking," he said. "It gets the whole process of (determining) overall ownership in the next 120 days going."
Pearson told the Steamboat Pilot & Today in July that the debt associated with Trailhead Lodge does not encumber other phases of the broader development known as Wildhorse Meadows. He said the same thing Friday about the impact of the foreclosure.
The notice of election and demand does not have implications for the nearby Wildhorse Marketplace commercial center or the more modest condos at First Tracks, Pearson said earlier this year. The single-family lots that sold out in The Range, a block from Trailhead, and the public people mover gondola that ferries skiers and pedestrians from a bottom terminal near Trailhead to the base of the ski area, as well as other amenities grouped in Trailhead, also are unaffected.