We’ve handled a lot of short sales and foreclosures. Nothing close to this size, however. Lenders put way too much debt ($1.7 billion) on Intrawest’s high-end resort properties at places like Whistler in British Columbia and Steamboat in Colorado as the market peaked. (Intrawest is owned by hedge fund Fortress) They counted on expensive condo sales to help pay down the debt. It turns out people cut back on second home purchases when the economy goes into a major recession.
Needless to say, the owners are way, way under water. They are trying to negotiate to hold on, since they basically have no equity left in the deal and holding on is like a free option for them if the market does come back. My guess is that this one is going back to the lender.