ASPEN, Colorado - An unpaid loan balance of $36.3 million has put the historic Hotel Jerome on the auction block.
The 92-bedroom Main Street hotel, built in 1889, is scheduled go to a foreclosure auction sale on Jan. 27, Deputy Treasurer Desiree Wagner said Monday.
The Pitkin County Treasurer's Office opened up foreclosure proceedings for the 92-bedroom Main Street property Thursday, when it filed a "notice of election and demand for sale." The notice says that LCP-Elysian Aspen Owner LLC has an unpaid balance of $36,292,781 to Jerome Property LLC, which holds the deed of trust on the property. Jerome Property LLC was formed Aug. 25 in Delaware, according to public records.
"The covenants of said deed of trust have been violated due to the failure to make the final payment due at the maturity date," the notice said.
Records at the Pitkin County Clerk and Recorder's Office show that Jerome Properties LLC bought the deed of trust from Aurora Bank, an affiliate of Lehman Brothers Holding Inc., on Aug. 31. The original note holder was Morgan Stanley Mortgage Capital Inc., data shows.
The original deed of trust, dated May 24, 2007, was for $48 million, the notice says. That same day Elysian Worldwide LLC and Lodging Capital Partners LLC, both of Chicago, bought the 113,282-square-foot hotel for $52.2 million from Oklahoma Publishing, which paid $33.7 million for the property in June 2005.
Currently, the Hotel Jerome is run by RockResorts, a luxury hotel company headquartered in Broomfield and a wholly-owned subsidiary of Vail Resorts. Inc.
"Hotel Jerome has achieved truly legendary status, both in Aspen and around the world," said David Pisor, founding principal of Elysian Worldwide, said in a statement at the time. "We look forward to working with RockResorts and the city of Aspen as we revive the hotel's historic grandeur."
Pisor did not return a telephone message left at his Chicago office yesterday. Hotel Jerome General Manager Brendan Carlin also did not return a phone call.
Deputy Treasurer Desiree Wagner said the hotel owners can take steps to stave off foreclosure by filing an intent to cure. No such notice had been filed as of Monday, she said.