One Steamboat Place Foreclosure Update
I have been hearing for about a week that the One Steamboat Place Forecloure has been extended again. This is not uncommon and was confirmed today by the developer and Steamboat Pilot. They have about $100M in outstanding loans to a group of several banks. Typically the banks are jockeying for position based on their place in the capital structure and pushing the developer to pay down the loan balance to extend the loan. The new deadline is May 25th and it wouldn't be a bit surprising to see it pushed out further.
The developer generally looks to keep some level of postion in the property, get forebearance on some of the debt, better terms and an extension of the loan. This type of loan is not a normal mortgage and must be renewed ever 1-3 years so even if the the developer and the project is in good shape that banks are under pressure to improve their loan portfolios and increase their capital there is this sort of dance either way. The banks don't want to take back the project since it will be worth less without a capable developer that brings the right overall experience to the table. There are strong incentives for all parties to figure it out and undoubtable pressure on several fronts here.
Now is the time to wait until the status of the debt is resolved before committing to any purchases since who ends controlling One Steamboat Place, the amount and structure of the remaining debt and their strategy going forward will have real bearing on the value going forward. All of this will determine pricing in One Steamboat Place and the attractiveness of owning there. If you would like to know more details, get a better explaination, come up with the right strategy for you or talk about the current market feel free to give me a call at 970-819-6930 or email [email protected]