MONTROSE - Cornerstone Colorado, a private golf community between Montrose and Telluride, has closed and will likely go on the market, again.
The 6,000-acre resort went into foreclosure in March and is now under the control of Cobalt Companies, a Salt Lake City firm that acquires distressed real-estate notes, said Michael Roberts, general counsel for Cobalt Companies.
"We thought we'd operate it and sell it at the end of the season or continue to operate it, but the carrying costs were too high and it didn't make sense," Roberts said.
In December 2011, Cornerstone, which features a Greg Norman-designed golf course, members' lounge, bar and grill, exercise facilities and residential community, sold for an undisclosed amount to SilverLeaf Financial of Salt Lake City.
Cornerstone previously was a subsidiary of Hunt Realty Investments of Dallas-based Hunt Oil Company.
SilverLeaf hired Kemper Sports, an Illinois-based golf management company, to operate the golf course and clubhouse.
Cobalt Companies subsequently took over the property after SilverLeaf was in breach of its loan covenant. That breach involved several items, including payments on the property, Roberts said.
Cornerstone opened for the golf season around Memorial Day weekend under the direction of Cobalt Companies and with golf operations being handled by Escalante Golf.
The decision to close the golf course was reached on June 12 and operations ceased on June 14, Roberts said.
Most of the thirty employees at the golf resort were laid off, with only a "skeleton staff" staying on to maintain the greens, provide security and continue operating the watering system for the benefit of homeowners, he said.
The foreclosure doesn't affect the homeowners within the golf community, but the sale does include 69 of the 125 fully improved lots and an additional 287 lots in various degrees of improvement within the development.
Roberts would not disclose how much was still owed on the note, or the property's future listing price. He said all interested buyers should contact Cobalt Companies.