Related Companies of New York may soon be faced with the foreclosure of their $3 billion Base Village project at Snowmass Ski Area.
A collection of four banks, led by Hypo Real Estate Capital of Germany, filed papers on Thursday in Pitkin County District Court seeking to foreclose on Base Village Owners, LLC, a subsidiary of Related Companies, claiming it defaulted on a $520 million loan. The bank also filed a motion to have a judge name a receiver for the Base Village property so it can be managed during the foreclosure proceedings.
Related Companies began construction on phase one of the Base Village Project in 2008 with its partners. The investment group envisioned a three-phase redevelopment of the existing village into a gorgeous 2.8-million-square-foot multi-use complex with 550 luxury condominiums, hundreds of hotel rooms and several posh restaurants.
Unfortunately, like many real estate projects, plans were slowed by the recession with issues arranging condo buyers and financing difficulties. Hypo, the lender who led the court filiings, itself needed a bank recapitalization by the German government last year.
To date, phase one has seen the completion of the all-new 95-room Viceroy luxury hotel, 78 Viceroy condos and a handful of trendy restaurants.