Foreclosing party places sole bid on Aspen Club
With roughly a dozen onlookers and interested parties attending, Wednesday morning’s foreclosure auction for The Aspen Club & Spa ended unceremoniously with a single bid of $52.59 million by the creditor who initiated the proceeding.
Immediately after, Sydney Tofany, county deputy treasurer and public trustee, announced the winning bid, the eight-day countdown began for junior lienholders to file what’s called a “notice of intent to redeem.“
After the redemption period expires, the highest bidder will take possession of the property, Tofany said. Creditor Revere Capital plans to complete its notice of redemption Thursday, its founding partner confirmed.
Clark Briner of Revere Capital said after the auction that Revere is teaming up with resort and hotel developer Meriwether Co. to take ownership of the property and parties have agreed to the terms. The plan is to pay off creditors, which include contractors and subs owed more than $25 million, and restart the unfinished redevelopment of the project that’s been dormant since the fall of 2017.
More details of the venture will be released after the joint venture takes ownership of the property, Briner said.
Revere Capital is a real estate investment firm with headquarters in Dallas. Boulder-based Meriwether is behind resort hotel developments in Carmel and Rancho Mirage, California, and such Colorado mountain towns as Breckenridge, Eagle, Steamboat Springs and Telluride.
Revere has said in court filings it is owed $15 million for a bridge loan it gave the club. Briner took the control of the club, which previously was run by Michael Fox, Sept. 1.
The highest bidder so far, GPIF Aspen, is owed $30 million in principal alone, according to foreclosure records. Documents from Aspen Club’s Chapter bankruptcy case, which was closed earlier this year, indicated the sum was $42 million because of interest.
The construction project site for the Aspen Club & Spa is located at 1450 Ute Ave. on the east side of town. Fifteen of the site’s townhomes are between 60% and 80% complete, six condominiums are 30% complete, and the commercial component is 30% complete, according to filings in the bankruptcy case. The club has been closed for nearly five years.
The plan is to get the club back to its membership numbers of 1,000, Briner said.
The county typically has conducted foreclosure auctions on the front steps of the Pitkin County Courthouse, but it was moved to Veteran’s Memorial Park next to the administration building to allow social distancing.
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The Pitkin County Restaurant Alliance will have to wait until Feb. 19 before it can make its case to a judge to lift the Red-level public health order banning indoor dining.