By Kris Hudson
Related Cos. is in a deal to buy back a portion of Snowmass Village, Colo.
New York real-estate developer Related Cos. is back on the ski slopes in Snowmass Village, Colo., having struck a deal to reclaim part of a project that had suffered a financial wipeout during the recession.
Prior to the recession, Related and its partners had bought most of the commercial core of tiny Snowmass, a ski village near Aspen, with plans for a $3 billion overhaul and expansion. On the project’s Base Village parcel, Related built a 151-room Viceroy hotel, a 600-space garage, several shops and restaurants and the foundation of a second luxury hotel.
However, as the recession worsened in 2009, many of Related’s equity partners stopped financing the project, and lenders led by since-nationalized German bank Hypo Real Estate Capital Corp. quit allowing draws on the project’s $520 million construction loan. The lenders foreclosed on the Base Village portion of the project in 2011, though Related still owns the rest of Snowmass’s commercial core.
In May, Related quietly reached an agreement to buy back the Base Village from FMS Wertmanagement, the firm designated by the German government to dispose of the property and other real estate seized by Hypo.
Each side declined to divulge the price of the deal, which is expected to close by year end. “We look forward to discussing the future of Base Village with all interested parties, and to sharing additional details of our plans once the transaction has closed,” said Dwayne Romero, Related’s president in Colorado, in a statement released by the company.