SilverLeaf Financial, which specializes in buying distressed debt, purchased Cornerstone fee simple with clear title, for an undisclosed price in late December. SilverLeaf Financial works closely with the Federal Deposit Insurance Corporation, banks and other financial institutions to purchase assets for the purpose of future monetization, according to its website.
Judging from the information posted on its website, SilverLeaf Financial acquires most of its properties by purchasing notes from banks in default situations and has purchased more than $500 million in face value notes over the past 36 months. In Colorado, this includes the acquisition of the 58-room luxury hotel Trailhead Lodge in Steamboat Springs and the North Valley Tech Center in Thornton.
In 2010, according to The Salt Lake Tribune, SilverLeaf Chief Executive Officer Dwight Shane Baldwin struck a deal that allowed him to escape jail time when he said he would fully repay investors who claimed they were defrauded by his firm. He was originally charged with felony fraud and theft but he was able to reduce those charges to two counts of attempted theft after allegedly deceiving investors.
In its acquisitions, SilverLeaf describes its work as finding opportunities, negotiating terms, coordinating and managing the due diligence, servicing the debt, managing the property if necessary, structuring the exit strategy, and, finally, managing the process to completion.
But since Cornerstone was purchased from Dallas-based Hunt Realty Investments in straightforward business transaction, it remains unclear what SilverLeaf’s “exit strategy,” if there is one, will be with Cornerstone.
Cornerstone is planned for a total of 412 “Homestead” lots ranging in size from one acre to over 100 acres. Of those there are 125 fully improved lots, 56 of which have sold, leaving 69 currently available for sale. There are an additional 287 lots in various levels of improvement within the development.
Included in the purchase are four custom built cabins constructed by the Cornerstone developer. Each large cabin is fully furnished with four master suites and shared amenity space. All four of these “Foursome Cabins” are currently available for sale as well.
The Clubhouse at Cornerstone is 6,000 square feet and includes a dining area, pro shop, men's and women's locker areas, fitness area and swimming pool/ beach area. The Cornerstone club features a 40-acre meadow with stables and horse boarding facilities, located in the northeast and southwest portions of the development.
When the development of Cornerstone took place in 2006, approximately 3,000 acres of open space was set aside within the development as well. Cornerstone residents are free to hike, bike, cross-country ski, and ride trails in this open space. Through its wildlife management plan, wildlife can move freely throughout the area. Cornerstone's focus on sustaining and protecting the health of the property's wildlife and natural environments is evident through their wetlands restoration, forest management, wildlife monitoring and water quality monitoring efforts inside the development.
Anyone interested in available real estate at Cornerstone can call 801/359-2855 ext. 555 or visit cornerstonecolorado.com.