Trailhead Lodge Auction

Trailhead Lodge was completed in 2009, but by the time developers Resort Ventures West were ready to deliver finished units, the real estate market had turned down dramatically and many of the pre-construction contracts did not turn into closings. Trailhead Lodge is managed for short-term rentals by Wyndham Vacation Rentals. When Salt Lake City company SilverLeaf Financial acquired the six-story Trailhead Lodge in Steamboat Springs, CO and the remaining 58 unsold condos through foreclosure proceedings last year, every real estate broker in town, including myself, was wondering what would a transaction of this magnitude do to our local Real Estate Market. SilverLeaf purchased the outstanding debt of $57 million from Bank of America for the discounted price of $28 mil. The initial price reduction of the residences after the acquisition created little to no activity pushing the new owners to the Auction event which took place in a downtown Denver hotel this past weekend (May 6th). There were 100 interested parties estimated, 25 of which were on-line bidders. There were buyers from 15 different states in US as well as Brazil and Bermuda. To give you an idea of pricing, residences previously priced at $1.3 m, had a starting bid of $335,000. The end result was 24 winning bidders, all accepted by the selling entity, for a total of $9,170,000. We'll have to wait up to 6 weeks to see if all of the above transaction go through the so called due diligence (buyer research) time period smoothly. Word on the street is that this Auction will create a post effect by stimulating buyer activity because of a few different reasons. Many interested parties were not comfortable with the auction format, the training and registration needed prior to the event, the 5% premium on top of the purchase price. Secondly, the auction prices will set a new market for the Trailhead development. I don't think even in their wildest dreams Silverleaf Financial executives would expect a future buyer to pay much more for the remaining inventory than what was paid at the auction event. Those will be a few very interesting weeks coming ahead and this is the time to bank on a good deal for almost a brand new product, with great amenities, located at the base area of one of the best ski resorts in North America. Oh...and did I mention your private line Gondola right outside your lobby doors. If you need more information on the remaining inventory please contact me directly at 970-291-9412 and martin@mybrokers.com I'm looking forward to serving you!