The sale will mark the second time the plagued property has changed hands because of financial woes.
The property, located on the north and south side of Country Club Drive near the Peaks, fell into the hands of hotel investment firm Ramsfield Hospitality Finance two years ago after the development’s ownership group led by Aaron B. Honigman defaulted on a $50 million loan. Since there were no bids in that foreclosure auction, Ramsfield Hospitality Finance became the property’s owner.
Now, according to Richard Mandel, president of Ramsfield Hospitality Finance, if nobody bids on the property in the May foreclosure auction, it will become the property of Bank of America, the primary lender. While it could be a long shot, Mandel said the bank is open to taking offers before the foreclosure sale takes place.
“The bank would entertain an offer if buyers are interested in pursuing it before the sale,” Mandel said on Monday.
The five-and-a-half-acre Rosewood development, approved by the Mountain Village Town Council in March 2007, spans two large lots, with approvals for 75 hotel rooms, 67 condos, 17 employee dorms, and five employee apartments. It was also granted a number of spaces for commercial/retail development.
Mandel said the property still carries those approvals.
“It’s a great plan, and the property is fully approved,” he said. “Right now, there is no way to build a new development in Telluride given the economic conditions.”