Club, Spa & Resort Marketing

Predatory loan decision has huge implications for hotel lending

A judge’s opinion on a bankruptcy case in Montana could have far-reaching implications for other lenders and borrowers in the hotel industry. In a document filed 13 May 2009 in the U.S. Bankruptcy Court in Butte, Montana, Judge Ralph B. Kirscher ruled that owners of the Yellowstone Mountain Club LLC in Big Sky, Montana, were indeed loaned money in 2005 by Credit Suisse in an egregious manner in an effort to increase Credit Suisse’s fees received through syndication. In addition, Kirscher ruled that Credit Suisse’s due diligence on the US$375 million loan was “almost all but nonexistent.” This decision is a blow to an already ailing hotel real estate lending community, said Thomas Morone, principal of Warnick + Co. “It doesn’t need that kind of pain right now. “The issue is that now there’s a precedent,” he said. “You have to step into that hole as a borrower or as a borrower’s lender. You don’t want to let this opportunity pass.” “This is a huge decision,” said David Neff, co-chair of the Hotel & Leisure Group at Perkins Coie LLP in Chicago. “What the judge held up in the opinion is, ‘Not so fast—the way you obtained your claim to the debt is inequitable and harmed other creditors.’” The only explanation for Credit Suisse’s actions is that it was driven to extract fees from the loans it was selling, and “letting the chips fall where they may,” Kirscher said in his judgment. “Unfortunately for Credit Suisse, those chips fell in this Court with respect to the Yellowstone Club loan. The naked greed in this case combined with Credit Suisse’s complete disregard for the Debtors or any other person or entity who was subordinated to Credit Suisse’s first lien position, shocks the conscience of this Court.” Kirscher determined the lender’s claim to US$232 million of the loan was equitably subordinated. In other words, the unsecured creditors and fees associated with the debtors’ bankruptcy claim will be repaid with the auction proceeds of Yellowstone Club before Credit Suisse gets a dime. As the holder of the first mortgage on the property, Credit Suisse should have been first in line to reclaim funds. In fact, CrossHarbor Capital Partners of Boston yesterday (5/29) won the resort auction with a bid of US$115 million, of which the creditors received US$30 million and Credit Suisse received an US$80-million promissory note, according to published reports. Hotel News Now | Hotels News - Article.

WCI to leave bankruptcy behind

WCI Communities Inc. expects to emerge from bankruptcy by the end of September owned by its creditors, according to a reorganization plan filed in a Delaware bankruptcy court. Advertisement Under the plan, first-in-line creditors - those with debt backed by collateral - would get an initial 95 percent stake in the company, which built luxury towers and well-known communities such as Pelican Bay. Lenders with unsecured debt would divide the remaining 5 percent stake. Many of those are local businesses who did work for WCI, including carpet and air-conditioning companies. Local creditors and the attorney representing a court-created creditor committee did not return calls Tuesday. In return, the secured creditors would hold $450 million in debt in the company, including a $150 million promissory note. When WCI filed for bankruptcy protection in August, it listed debts of about $1.9 billion. "The question is whether the creditors will be satisfied trading a greater debt for a lesser debt with a chance at a better return than they would have with a liquidation, said Jack McCabe, a Deerfield Beach-based real estate consultant. The creditors have not approved the plan, but for several months have been part of the negotiations that produced it, said David Fry, interim president and chief executive officer. www.news-press.com - WCI to leave bankruptcy behind 

Bad loans called good business

Instead of foreclosing, some lenders are selling their portfolios of bad loans at auction. And the more troubled the borrower, the higher the price an investor is willing to pay, said Tom McCarthy, managing director of New York-based The Carlton Group. The thinking is that when the loan fails, the new owners of the loan can foreclose and then flip the property for a profit. Carlton has held auctions for such loans across the country and now has $98 million in bad loan pools for sale. McCarthy would not give specifics on how many Tampa Bay area properties are included in the sale, but he said there are several and they are high-end homes. As cruel as it sounds that the buyers will gain if the loans fail, McCarthy said, investors willing to buy the loans will benefit the overall housing market. "This cleans up bank balance sheets," he said. "The lenders will then be more comfortable loaning money when they don't have as many bad loans." What does this mean for homeowners wanting to avoid foreclosure? "It may mean they get to keep their home after all," McCarthy said. "The loan will now be in the hands of someone willing and able to do something about it, to work with the owner." Bad loans called good business.

Can't sell your house? Offer a coupon as some homeowners are doing in Florida

Sellers in Florida’s struggling luxury real estate market are throwing buyers a line: coupons worth a million dollars off their next home purchase. Luxury real estate coupon buzz stirred nationally last week, after Cape Coral resident Rich Ricciani bought an advertisement in a Southwest Florida publication that included a $1 million coupon for his $6.9 million Italian villa. The Wall Street Journal and television news programs in Chicago and California picked up on the program. “We figured everyone likes to save some money,” said Ricciani. 62, a retired accountant who now buys and sells real estate full-time. The house at 1210 Gasparilla Drive was Ricciani’s and his wife’s dream house and it took three years to fully fit all 15,000 square feet. When the project was finished in March the couple’s two children were already grown and the house “was too big for just the two of them,” Ricciani said. Ricciani put the house on the market immediately and, after consulting with his broker, published the coupon in hopes of generating some offers. Indeed, the prospect of six-figure savings caught the eyes of coupon clippers nationwide and “picked up legs and started running” aided by a public relations firm he hired to spread the word, Ricciani said. He said he received calls about the house from as far away as Europe and the Middle East within the week. Can't sell your house? Offer a coupon as some homeowners are doing in Florida : Lee County : Naples Daily News.

More on the Busted Housing Bubbles..

Best and worst housing markets.. interesting method of scoring and determining which areas are suffering and which ones are doing well.. The latest S & P/Case-Shiller 20-city home price index shows a record 18.5% drop from the previous year. Is your city in the pits or relatively stable?

Wishing you’d left the game earlier is a time-honored Las Vegas tradition. Today, that’s true not only for gamblers but for homeowners there. The last time Las Vegas properties were worth more than the average mortgage? August 2003. Blame overbuilding and risky loans, a gambling mentality or even the desert sun, but based on today’s results from the S&P/Case-Shiller home price index, which measures metro home prices in 20 cities through December 2008, Las Vegas is the weakest market in the country. Prices are dropping quickly (down 4.81% since last month and 33% in the last year); the pace of decline is accelerating at the third-fastest rate in the nation; and based on lost equity, homeowners are out 65 months of mortgage payments. All signals that things aren’t likely getting better any time soon. "Vegas is a market unto its own," says Steve Cesinger, chief financial officer at Dewberry Capital, an Atlanta-based real-estate investment firm. "I don’t know what those guys were drinking when they thought all this building made sense. If it does work out soon, then there’s some force out there in the universe that I’m not aware of." More on the Busted Housing Bubbles.. | Pirates! Man Your Women!.

Some Hoteliers Forge Ahead in Poor Economy

Even as other hotel and resort projects conceived and started in better times get scaled back, postponed or canceled, David Pisor is not slowing his down a bit. The founder and chief executive of the Elysian, described as an "ultraluxury" property on Chicago's Gold Coast, is working frenetically to get his 188 guest rooms - and at least some of the 52 upscale condos - up and running by the planned opening date of July 15. Article - WSJ.com.

Four Seasons Resort Great Exuma Closes Doors

A crashing hotel occupancy level has claimed its first trophy victim in the Bahamas. The six-year-old, 180-room, 500-acre Four Seasons Resort Great Exuma has closed its doors. The hotel expected to lose more than $5 million this year, according to the London office of PricewaterhouseCoopers. The accounting firm was named receiver for the property in June 2007 after the owner-developer, Emerald Bay resort Holdings Ltd., defaulted on a $120 million construction loan. The lender was Mitsui Sumitomo Insurance Group Holdings Inc. of Tokyo. Pricewaterhouse has been unable to find a buyer to date. At closing this week (May 26), the resort's occupancy was in the 50 percent range. The resort opened in 2003 at an estimated development cost of $350 million, or about $195 million per room. If sold this year, industry analysts speculate the property will go for under $100 million or about $500,000 per room. Starting room rates at the resort have been quoted at the $500 level. According to the Bahamas Ministry of Tourism, the key statistical factor that sank the hotel was the dwindling number of visitors arriving by air in the first quarter of this year. Four Seasons Resort Great Exuma Closes Doors - Real Estate Channel Global News Center.

Bull market loans return to gore Credit Suisse's investors - May. 29, 2009

Please note - this is a continuation from the post below (previous post) due to the length of the story. However it was such a significant story, we felt it was worth publishing more than just the excerpt)

Posh resorts were the targets

David Miller and his team had successfully marketed the loans to, among other developments, the Tamarack Resort, in Idaho ($250 million); Lake Las Vegas, a 3,592-acre golf community in Nevada ($540 million); Promontory, a 7,200 acre, 10-square-mile, second-home resort outside of Park City, Utah ($275 million); the Turtle Bay Resort, in Hawaii ($400 million); and to four Ginn resorts in Port St. Lucie, Florida, Naples, Florida, Boone, North Carolina and the Bahamas ($675 million.)

One of the more egregious of these loans was made to the infamous Yellowstone Club, the bankrupt private golf and ski resort north of Yellowstone National Park in Montana. The exclusive Yellowstone Club, where the likes of Bill Gates, investment banker Bob Greenhill and former Citigroup (C, Fortune 500) CFO Todd Thomson have multi-million dollar homes, was the brainchild of timber baron Tim Blixseth and his now former wife, Edra. The Blixseths began developing the Yellowstone Club in 1999. (See: Paradise lost).

In December 2004, according to court documents, after years of being the major source of financing of around $155 million for the complex project of creating a private ski area, a golf course, various lodges and homes, Blixseth started receiving emails and calls from Credit Suisse. Miller's team had been trying to contact Blixseth to tell him about Credit Suisse's new loan for developers, such as Blixseth, that he described as akin to a "home equity loan" that broke "new ground...by doing real estate loans in the corporate bank loan market." After speaking to a director in Miller's group, Blixseth invited the Credit Suisse bankers out to the Yellowstone Club to have a look around the impressive resort.

Sealing the deal with a coin toss

Court documents also detail how Blixseth originally wanted a $150 million loan from Credit Suisse but after a few months of negotiation, the size of the loan ballooned to $375 million. Blixseth signed the deal on September 20, 2005. The loan documents allowed Blixseth to take out up to $209 million of the proceeds "for purposes unrelated to the Yellowstone Development," another up to $142 million could be used by "unrestricted subsidiaries" for purposes "unrelated" to Yellowstone, and another $24.2 million or so went to pay off the existing Yellowstone Club debt to a local bank.

To do the deal, Credit Suisse wanted a fee of 3%, or $11.25 million. Blixseth wanted to pay only 2%, or $7.5 million. To resolve the stalemate, Blixseth and Miller decided to flip a coin; Blixseth won.

In the end, Credit Suisse wired $342.1 million to the Yellowstone Club. That same day, Blixseth whisked out $209 million out of the Club's accounts in the form of a loan to another entity controlled solely by him. The windfall was then "disbursed to various personal accounts and payoffs benefiting Tim and Edra Blixseth personally," according to court documents. Blixseth used the money for various purposes including buying trophy resort properties around the world at peak prices to create a time-share development called Yellowstone Club World. He also got himself a Gulfstream jet.

In May 2006, Blixseth created a $209 million unsecured demand note payable to the Yellowstone Club, backdated to September 30, 2005, essentially writing a personal IOU to the Yellowstone Club for the money. Last November, the Yellowstone Club filed for Chapter 11 bankruptcy protection.

The fox in charge of the hen house

On May 12, 2009 Judge Ralph Kirscher, presiding over the Yellowstone Club bankruptcy case, decided to punish Credit Suisse by equitably subordinating its $375 million loan -- moving the bank from the senior secured position in the capital structure where it would get repaid in full before anyone else in the pecking order to the very back of the bus behind all the unsecured creditors.

The Judge's ruling -- in which he called the loan "predatory" -- condemned Credit Suisse noting that numerous entities that received Credit Suisse's syndicated loan product have failed financially, including Tamarack Resort, Promontory, Lake Las Vegas, Turtle Bay and Ginn. He said the loans were "doomed to failure" as soon as they were made while enriching the developers and the bankers along the way. "This program essentially puts the fox in charge of the hen house and was clearly self-serving for Credit Suisse," the Judge wrote. After the Judge's ruling, Credit Suisse said it was "disappointed in the ruling and disagrees with the court's findings."

In a brief filed as part of the trial in the Yellowstone Club bankruptcy, Credit Suisse defended its $375 million loan as "unassailable" and stated that no one could have foreseen "that the greatest economic collapse since the Great Depression would occur, rendering the Debtors unable to pay their debts as they became due." The bank explained further that it bought a $17 million piece of the original loan "long after" it was made and claimed that this would be "strange conduct, indeed" for a firm that "knew the debtors were going to fail." Credit Suisse said the Yellowstone Club stayed current on the loan for three years until it "succumbed to the collapse of the markets and mismanagement."

Sam Byrne gets control of Yellowstone

On May 18, CrossHarbor Capital, a Boston-based hedge fund, submitted a winning $115 million bid to buy the Yellowstone Club out of bankruptcy court, consisting of the issuance of $80 million of new debt to the old creditors and paying $35 million in cash. Sam Byrne, the principal at CrossHarbor and a longtime member of the Yellowstone Club and a developer there, also agreed to invest another $75 million -- and likely closer to $200 million -- of "working capital" into the Club. (A year or so ago, Byrne had made a $456 million bid for the Yellowstone Club -- then lowered it to around $405 million -- that was not accepted.) So in the end, he got control for $341 million less than he initially offered.

"I am happy that the bankruptcy process will soon be behind the Yellowstone Club with the company emerging as a properly capitalized enterprise for its membership," Byrne said in an interview. "Everyone is looking forward to the Club becoming the quiet, extraordinary place that we had all been promised it would be."

For his part, Blixseth, who still owns land at the Club, said he "could have organized a bid" for it "but in the final assessment felt that it is very hard to put Humpty-Dumpty back together again, and decided not to try. I had my role in being the inventor and implementer for 10 years, and it was time for someone who likely looks at the club as just a tool for making money to take it to its final completion." Judge Kirscher will soon rule whether Blixseth must repay to the Yellowstone Club's creditors the $200 million plus he took out of the Club from the original Credit Suisse loan.

And Credit Suisse gets a French chateau

Credit Suisse submitted the only other bid for the Club but withdrew it in exchange for a release from further liability for making the loan in the first place and for a transfer of the ownership to it of Chateau de Farcheville, outside of Paris. The chateau is a sprawling and breathtaking 13th-century, 15-bedroom pile (surrounded by fully reconditioned moat) that Blixseth paid some $28 million for (with the Credit Suisse loan) and now is said to be worth closer to $20 million, assuming a buyer can be found. Duncan King, a Credit Suisse spokesman in New York, had no comment on the outcome of the matter although he confirmed Credit Suisse is no longer making these types of loans.

As for David Miller, he remains at Credit Suisse and was recently promoted to co-head of the firm's U.S. Loan Syndication business. King declined to make Miller available to be questioned about the loan to the Yellowstone Club, the judge's decision in the case or whether the "gravy train" had ended.

The Author of this story - published in Money -

William Cohan is the author of House of Cards: A Tale of Hubris and Wretched Excess on Wall Street, published in March by Doubleday Books, a division of Random House, Inc. 

Bull market loans return to gore Credit Suisse's investors - May. 29, 2009.

Bull market loans return to gore Credit Suisse's investors - May. 29, 2009

(This is a stunning story - bc) Credit Suisse, the large Swiss financial services firm run by the American investment banker Brady Dougan, has sidestepped the worst of the financial crisis. But between 2004 and 2006, the bank was not above making more than $3 billion of senior secured "predatory" (according to one judge) loans to high-end real estate developers operating mostly in the western United States. Within the last year, at least eight of the real-estate developments that received the Credit Suisse (CS) loans are either operating under bankruptcy court protection, have been liquidated or have been foreclosed upon. In one case, the $7.5 million fee paid to Credit Suisse on a $375 million loan was decided with a coin toss between a Credit Suisse banker and a real estate developer. The portfolio of loans was the brainchild of David Miller, a Managing Director at Credit Suisse, who was co-head of the U.S. capital markets business within the syndicated loan group. When Credit Suisse made the loans, it got paid millions in fees and then syndicated them all off to investors, who will be fortunate to get back pennies on the dollar during the various bankruptcy proceedings. (Credit Suisse currently has a minimal exposure to the original loans.) Miller was well aware of the golden goose he had on his hands. In an August 2005 email to a colleague, Miller wrote, "[T]hese are aggressive deals and it is in all of our best interests, that the investors are protected, because if one of them should blow up, you will see these investors pull out of this land development mkt [market] and our gravy train will stop." A windfall for investors In making what were known at Credit Suisse as "syndicated term loans," Miller and his team targeted posh resorts and offered their developers the chance to cash out a big chunk of their investments immediately -- often in the form of a dividend. What's more: In general the developers could use the loans virtually any way they wanted and were not bound to use them for the existing projects that secured the new loans. So the developers enriched themselves while saddling the projects with a crushing debt load that -- it quickly became apparent -- the projects could not support. As a result, the resorts were starved of the capital they needed to keep operating properly. The developers walked away with a windfall; the resorts collapsed. Of course, Credit Suisse was not alone in making these aggressive loans at the top of the market. Other firms, such as Lehman Brothers, Barclays, JPMorganChase (JPM, Fortune 500) and Wachovia made these kinds of master-planned community deals. In sum, industry players estimate some $100 billion of such loans were made. Bull market loans return to gore Credit Suisse's investors - May. 29, 2009.

Resort files bankruptcy - Tierra del Sol - FL

A troubled developer in the Four Corners area near Walt Disney World, sued by British investors after the vacation homes for which they paid thousands weren't built, has now sought protection from its creditors in bankruptcy court. Tierra del Sol Resort Inc. filed a Chapter 11 petition this week in U.S. Bankruptcy Court in Orlando, seeking a chance to restructure so it can resume construction and pay off its debts. The company owes creditors a total of $184 million. "The goal is to restart construction," said bankruptcy lawyer Scott Shuker, who filed the petition for the Orlando-based resort company. Construction ceased last summer at Tierra del Sol, a development that was supposed to total nearly 1,000 condominium units and town homes off U.S. Highway 27, just west of the ChampionsGate resort. The developer ran out of money. Resort files bankruptcy -- OrlandoSentinel.com.

Robert Trent Jones sees great opportunity for Golf Course industry; less Private Golf

In all recessions or downturns, there is opportunity. That's precisely how Bruce Charlton, immediate past president of the American Society of Golf Course Architects, feels about the present golf course market. "The game has been around for 500 years, and over the centuries it's taken various forms," said Charlton, president and chief design officer of Robert Trent Jones II (RTJ II). "I think we're going to see some different things ahead, like a period of new courses as public spaces - the way golf was at its Scottish beginnings. We'll see fewer expensive private clubs hidden behind hedges, and more public facilities where golfers might encounter their neighbors walking their dogs around the links or strolling on public paths built in and around a golf course. People are beginning to realize - again - that golf courses are terrific community assets that both golfers and non-golfers can enjoy, but which can also produce revenue." The Latest in Luxury Resort & Real Estate News - Real Estate Channel Global News Center.

Bankrupt Luxury Community Sold To Same Developer - UT

In a highly unusual bankruptcy outcome, the developer of a luxury golf community near Park City bought it back for pennies on the dollar Friday because the leading creditor was unable to scrap together a bid and nobody else was interested. Promontory, valued at $560 million before the recession took hold a year ago, was sold for just $30 million to a developer who walked away from $350 million in loans packaged by Credit Suisse and sold to hedge funds and other investors. A Credit Suisse spokesman didn't dispute the loss but wouldn't comment. Dallas-based Highland Capital Management, a hedge fund that owns about 40 percent of the loans, didn't return calls from The Associated Press. Francis Najafi (Na-JAF-ee), chief executive of Phoenix-based Pivotal Group, emerged triumphantly from a courtroom Friday as the same owner of Promontory, where more than 350 multimillion-dollar homes have already been built. Members pay hefty fees for golf and other amenities, including opulent lodges and a warehouse-sized horse stable. Najafi kept operations going during a yearlong bankruptcy. Another 1,500 building lots are available across a sprawling sagebrush-covered hill overlooking the ski town of Park City. Najafi said he believes sales will pick up in a year or two, making Promontory viable again. Bankrupt Luxury Community Sold To Same Developer | Mortgages | Financial Articles & Investing News | TheStreet.com.

Sold! Montana’s Yellowstone Club Goes for $115 Million - MT

CrossHarbor Capital Partners LLC paid $115 million to buy Montana’s Yellowstone Club out of bankruptcy court. The Boston-based private-equity firm agreed to pay $35 million in cash and assume $80 million in debt owed to Credit Suisse. CrossHarbor will also infuse up to $75 million in working capital. CrossHarbor’s principal, Sam Byrne, is a Yellowstone Club member, and has been closely following its fortunes. In 2008, CrossHarbor attempted to acquire the club for $450 million. According to the Bozeman Daily Chronicle, the sale capped a week of non-stop negotations in the court of federal bankruptcy Judge Ralph Kirscher. The only other bidder was Credit Suisse, which in 2005 loaned $375 million to Tim and Edra Blixseth, the now divorced couple who jointly founded the club. As part of the final deal, Credit Suisse will be allowed to co-invest in the club with CrossHarbor. Credit Suisse also received additional assets, including Yellowstone Club real estate and a castle in France that the Blixseths had acquired. Unsecured creditors were recognized by the court as $19 million was set aside to pay local vendors, tradesmen, and others. This marks the second major bankruptcy ruling in as many months involving Credit Suisse. In April the Promontory Club outside of Park City, Utah, sold to the Pivotal Group for $30 million. Credit Suisse had put together a $350 million loan package for Pivotal, which it used to develop the resort community before seeking bankruptcy protection. Sold! Montana’s Yellowstone Club Goes for $115 Million | LandReport.com.

Bankrupt luxury community sold to same developer - - UT

The developer of a bankrupt luxury community near Park City was able to buy his own project back. U.S. Bankruptcy Judge Judith Boulden approved the sale of Promontory ranch to an affiliate of the original developer, Francis Najafi (Na-JAF-ee), chief executive of Phoenix-based Pivotal Group. Najafi's major creditor, the Swiss investment bank Credit Suisse, decided not to try to recover Promontory, which is operating at a loss. That left Najafi the only bidder in a courtroom Friday. Najafi bought Promontory for $30 million after defaulting on $350 million in loans packaged by Credit Suisse. Lawyers say the deal wipes out hedge funds and other investors who bought the loans arranged by Credit Suisse. Bankrupt luxury community sold to same developer - KIFI - Idaho Falls, Pocatello, Jackson WY - Weather News Sports-.

$43.7 million resort in Jonestown, Lago Vista facing foreclosure Posting lists developer-owned land, lots in several subdivisions; effect on marina, beach club unclear Lenders have posted a $43.7 million resort home development on the north shore of Lake Travis for foreclosure, according to RexReport.com, a San Antonio company that tracks foreclosures. The posting includes land and lots in several subdivisions owned by MDR Hollows LP, the developer of the Hollows resort, which is in both Jonestown and Lago Vista. Spokespeople for MDR Hollows did not respond to requests for comment. But Paige Saenz, Jonestown's city attorney, said Friday that city officials are in touch with the developers and are waiting for them to explain their plans. "We've given them until next week." Saenz said. "We would like for this to be worked out so the project can keep going." Lago Vista City Manager Bill Angelo said he had not heard about the foreclosure but said he knew the project had lost an investor and had stopped construction. The resort's Web site describes the Hollows as "a paradise deep in the heart of Texas." The development includes casitas priced between $420,000 and $650,000, home sites ranging from $94,500 to $119,500 and villas costing between $180,000 and $550,000. $43.7 million resort in Jonestown, Lago Vista facing foreclosure.

The Bonita Bay Group is selling the clubs in its communities and the upscale development company will be run by an outside consultant for the time being as it tries to stave off bankruptcy, officials said Wednesday. Kitty Green, president of the company, said she’ll resign shortly and when she does, the company will be managed by Timothy Boates of RAS Management Group LLC, a crisis management and turnaround firm based in Newport, R.I., and Gurley, Ala. Boates’ title will be “chief restructuring officer.” Green succeeded Dennis Gilkey as company president in 2007. Boates’ first order of business will be to sell off seven recreational clubs in five communities: at Verandah in east Fort Myers, Twin Eagles in Collier County, Bonita Bay in Bonita Springs, Shadow Wood in Estero and Mediterra in Collier County. Another Bonita Bay community, Sandoval in Cape Coral, has no club and is not affected. Florida Trend -  Florida's Source For Business News.

The Sun Ranch in Montana’s Madison Valley, a spectacular 18,500-acre spread that’s been at the heart of an ambitious conservation development program created by owner Roger Lang, is on the market for $55 million. In an interview, Lang characterized the move as “a personal decision” that would free up capital to further expand his ranch conservation efforts in Montana and elsewhere in the West. “Ninety-eight percent of Sun Ranch is protected by conservation easements,” said Lang, who made a fortune in the tech business before turning his attention to conservation. “The business plan was to sell eight to 10 homesites. But we decided that rather than battle the recession and make the business plan work, we’d take some capital off the table and put it to work buying other ranches.” Madison Valley’s Famed Sun Ranch on the Block | Jonathan Weber | Bozeman | New West Bozeman.

The Greenbrier Hotel Corporation (GHC), owner of The Greenbrier Resort in White Sulphur Springs, announced today that it has sought Chapter 11 protection to help ensure the viability of the resort. As part of the filing, GHC asked for approval of financing from CSX Corporation to support the resort s ability to operate in the normal course in the near-term. The filing should have no effect on the day-to-day operations of the resort or its ability to accept and fulfill advance bookings. Also, GHC announced that it has signed an Asset Purchase Agreement with Marriott Hotel Services, Inc. for the sale of The Greenbrier, subject to substantial conditions. "A sale to Marriott would be a great outcome for everyone associated with The Greenbrier," said Michael Gordon, president and managing director of the resort. The agreement with Marriott contemplates that CSX Corporation would provide $50 million, through an affiliate, to be used in the operation of the resort after completion of the sale. These funds would be paid over a two-year period following the closing of the transaction. Marriott Buys Greenbrier, Pending Union OK - 3/19/2009 10:30:00 AM - Hotels.

Surprise! It's a Bailout for Vacation Homes, Too I'm shocked that people aren't jumping all over the revelation that the no-equity mortgage refinance program unveiled yesterday is going to be available for vacation homes and one-to-four unit rental properties as well as for owner-occupied homes. The Post's Renae Merle reported this detail, which she found in the program rules published by Fannie Mae and Freddie Mac. The refinances are available to borrowers who bought their properties using Fannie or Freddie loans and who are not behind on their payments, but who don't have enough equity to qualify for an ordinary refinance. It's half of a two-part homeowner bailout program. The other half encourages loan modifications that can reduce interest rates and payments for borrowers already in default or near foreclosure. That loan-modification plan is restricted to a borrower's primary residence. But President Obama never made such a distinction when he first announced the broad outline of his plan last month. "The plan I'm announcing focuses on rescuing families who have played by the rules and acted responsibly, by refinancing loans for millions of families in traditional mortgages who are underwater or close to it," Obama was quoted as saying in a Feb. 18 Post story. Perhaps we should have read "close to it," as "close to the water" instead of as "close to underwater." Surprise! It's a Bailout for Vacation Homes, Too - Local Address - Buying, selling and owning a D.C.-area home..

It is certainly not what investors or homeowners expected when they bought into Tamarack -- but five years later, the highly touted resort is shutting down. The resort is closing at the end of the business day this Wednesday, but it's not like a store or a business that can just lock the doors and walk away. This is a resort with a golf course, a ski hill, spa and numerous other amenities that have to be protected for the future. Over the years, we've followed Tamarack's development in the mountains outside Donnelly. Step by step, it seemed skeptics were proven wrong as more and more structures and amenities were added. But within the past year, a combination of financial failings and the economic downturn have put the resort in default. Despite efforts to keep it afloat, Tamarack is sinking under insurmountable debt. Tamarack to close Wednesday, future remains uncertain - Boise- msnbc.com.

$43.7 million resort in Jonestown, Lago Vista facing foreclosure - TX

$43.7 million resort in Jonestown, Lago Vista facing foreclosure Posting lists developer-owned land, lots in several subdivisions; effect on marina, beach club unclear Lenders have posted a $43.7 million resort home development on the north shore of Lake Travis for foreclosure, according to RexReport.com, a San Antonio company that tracks foreclosures. The posting includes land and lots in several subdivisions owned by MDR Hollows LP, the developer of the Hollows resort, which is in both Jonestown and Lago Vista. Spokespeople for MDR Hollows did not respond to requests for comment. But Paige Saenz, Jonestown's city attorney, said Friday that city officials are in touch with the developers and are waiting for them to explain their plans. "We've given them until next week." Saenz said. "We would like for this to be worked out so the project can keep going." Lago Vista City Manager Bill Angelo said he had not heard about the foreclosure but said he knew the project had lost an investor and had stopped construction. The resort's Web site describes the Hollows as "a paradise deep in the heart of Texas." The development includes casitas priced between $420,000 and $650,000, home sites ranging from $94,500 to $119,500 and villas costing between $180,000 and $550,000. $43.7 million resort in Jonestown, Lago Vista facing foreclosure.

Bonita Bay must unload its clubs - FL

The Bonita Bay Group is selling the clubs in its communities and the upscale development company will be run by an outside consultant for the time being as it tries to stave off bankruptcy, officials said Wednesday. Kitty Green, president of the company, said she’ll resign shortly and when she does, the company will be managed by Timothy Boates of RAS Management Group LLC, a crisis management and turnaround firm based in Newport, R.I., and Gurley, Ala. Boates’ title will be “chief restructuring officer.” Green succeeded Dennis Gilkey as company president in 2007. Boates’ first order of business will be to sell off seven recreational clubs in five communities: at Verandah in east Fort Myers, Twin Eagles in Collier County, Bonita Bay in Bonita Springs, Shadow Wood in Estero and Mediterra in Collier County. Another Bonita Bay community, Sandoval in Cape Coral, has no club and is not affected. Florida Trend -  Florida's Source For Business News.

Madison Valley’s Famed Sun Ranch on the Block - MT

The Sun Ranch in Montana’s Madison Valley, a spectacular 18,500-acre spread that’s been at the heart of an ambitious conservation development program created by owner Roger Lang, is on the market for $55 million. In an interview, Lang characterized the move as “a personal decision” that would free up capital to further expand his ranch conservation efforts in Montana and elsewhere in the West. “Ninety-eight percent of Sun Ranch is protected by conservation easements,” said Lang, who made a fortune in the tech business before turning his attention to conservation. “The business plan was to sell eight to 10 homesites. But we decided that rather than battle the recession and make the business plan work, we’d take some capital off the table and put it to work buying other ranches.” Madison Valley’s Famed Sun Ranch on the Block | Jonathan Weber | Bozeman | New West Bozeman.

Marriott Buys Greenbrier, Pending Union OK

The Greenbrier Hotel Corporation (GHC), owner of The Greenbrier Resort in White Sulphur Springs, announced today that it has sought Chapter 11 protection to help ensure the viability of the resort. As part of the filing, GHC asked for approval of financing from CSX Corporation to support the resort s ability to operate in the normal course in the near-term. The filing should have no effect on the day-to-day operations of the resort or its ability to accept and fulfill advance bookings. Also, GHC announced that it has signed an Asset Purchase Agreement with Marriott Hotel Services, Inc. for the sale of The Greenbrier, subject to substantial conditions. "A sale to Marriott would be a great outcome for everyone associated with The Greenbrier," said Michael Gordon, president and managing director of the resort. The agreement with Marriott contemplates that CSX Corporation would provide $50 million, through an affiliate, to be used in the operation of the resort after completion of the sale. These funds would be paid over a two-year period following the closing of the transaction. Marriott Buys Greenbrier, Pending Union OK - 3/19/2009 10:30:00 AM - Hotels.

Surprise! It's a Bailout for Vacation Homes - Washington Post

Surprise! It's a Bailout for Vacation Homes, Too I'm shocked that people aren't jumping all over the revelation that the no-equity mortgage refinance program unveiled yesterday is going to be available for vacation homes and one-to-four unit rental properties as well as for owner-occupied homes. The Post's Renae Merle reported this detail, which she found in the program rules published by Fannie Mae and Freddie Mac. The refinances are available to borrowers who bought their properties using Fannie or Freddie loans and who are not behind on their payments, but who don't have enough equity to qualify for an ordinary refinance. It's half of a two-part homeowner bailout program. The other half encourages loan modifications that can reduce interest rates and payments for borrowers already in default or near foreclosure. That loan-modification plan is restricted to a borrower's primary residence. But President Obama never made such a distinction when he first announced the broad outline of his plan last month. "The plan I'm announcing focuses on rescuing families who have played by the rules and acted responsibly, by refinancing loans for millions of families in traditional mortgages who are underwater or close to it," Obama was quoted as saying in a Feb. 18 Post story. Perhaps we should have read "close to it," as "close to the water" instead of as "close to underwater." Surprise! It's a Bailout for Vacation Homes, Too - Local Address - Buying, selling and owning a D.C.-area home..

Tamarack to close

It is certainly not what investors or homeowners expected when they bought into Tamarack -- but five years later, the highly touted resort is shutting down. The resort is closing at the end of the business day this Wednesday, but it's not like a store or a business that can just lock the doors and walk away. This is a resort with a golf course, a ski hill, spa and numerous other amenities that have to be protected for the future. Over the years, we've followed Tamarack's development in the mountains outside Donnelly. Step by step, it seemed skeptics were proven wrong as more and more structures and amenities were added. But within the past year, a combination of financial failings and the economic downturn have put the resort in default. Despite efforts to keep it afloat, Tamarack is sinking under insurmountable debt. Tamarack to close Wednesday, future remains uncertain - Boise- msnbc.com.