Crazy Economics or Funny Money?

The German bank consortium that repossessed the Snowmass Base Village from the developer, the Related Companies, during the financial crisis for $138M in the fall of 2011 after the developer walked away from a reported $507M in loans, and then sold it back to Related in the fall 2012 in a foreclosure sale for $90M, has taken another hit and lost a property tax case in the Colorado Court of Appeals. Snowmass BV HoldCo (a relative of Hypo Real Estate Holding AG) had contested Pitkin County’s classification of the Viceroy Snowmass, a hotel condo project, as residential thereby assessing the the property’s value at $111,543,000. The banks argued that because the condo units were rented out on a nightly or weekly basis, they were hotel rooms and should have been valued at $22,640,000. The Pitkin County assessor estimated the value of all the holding company’s Base Village assets to be $190 million in 2011. The Viceroy was developed by another Related entity, Related WestPac, which purchased Base Village from Aspen Skiing Co. and Intrawest in 2007 for $169 million.

Link to article by Jim Breathard, Oct 30, 13 SS

Stalled building construction was draped in plastic at Hypo Real Estate

Holdings AG’s Snowmass Base Village ski resort in Snowmass Village (SMV),

Colorado, on Aug. 24, 10. (Photo credit: Bloomberg News article on Hypo)