On January 23rd the Steamboat Pilot and Today reported that 15 units at the Highmark resort ins Steamboat Springs, Colorado would go to auction on March 3rd. One unit will sell at absolute auction with no reserve.
The Highmark property has had a very troubled history and hopefully this will be the final chapter. Back in 2003 the foundation for the project (at that time it was called the Chadwick) was begun and then abandoned, to sit idle for well over a year. After a new developer took over the project and changed the name, construction was completed. Unfortunately, this was not the end of the Highmark's troubles.
In December 2007, the Steamboat Pilot reported that the "Highmark developers sue buyers, Steamboat Ventures: Purchasers' failure to close a breach of contract."
Marketing of the condos within the Highmark started with an in house sales team, with minimal success. Then the sales strategy shifted and the developer offered a lease back opportunity through a local real estate firm. This offer allowed buyers to earn guaranteed rental income from the developer for a set number of years, offsetting carry costs. Unfortunately this incentive program turned out to be a very bad deal for those who jumped at the opportunity. Currently one of these units is in foreclosure and being sold for close to half what was originally paid. It is our hope that once the property is turned over to a true homeowners association, the real value can be realized.
Is this auction a good opportunity? This is the big question. We have performed an analysis of the units being auctioned for our clients and have determined there could be an opportunity. If you have any interest in owning a home across the street from the Steamboat Springs Ski area, contact us and we will review the situation with you. There are a number of variables which need to be considered with an auction of this nature. We can be reached at 970.819.1432 or chris@mybrokers.com
