by North South Partners
Solaris – one of Vail’s newest resort properties is struggling to open…at least in its entirety.
Solaris – has the reputation as the most expensive new Resort Property in Vail – that is, if you choose to measure their cost by the most dollars per square foot of your investment.
Solaris’s own press release from July 9th 2008 says “a full 70% of the residences are under contract, with delivery scheduled for the 2009/2010 ski season.” That was last ski season by the ECT’s count. (Click Here) Solaris’s own home page (www.solarisvail.com) still has a graphic on it that states an alleged quote from the VD “on pace for 2010” Of course if you speak to a few of Solaris’s new retailers trying to open – you’ll get a little different story.
Some of these retailers were scheduled to be in their retail space (by the end of June 2010) and open for business – this July 4th holiday weekend. That didn’t happen in all cases, and some retailers are less than happy with Solaris developer – Peter Noble.
Reports also received by the ECT this week – that Mr. Noble’s bankers aren’t completely happy either. It is traditional for a project that reaches the end of its construction period – to transition from its reported “$325 Million” construction financing to the projects “permanent financing”. Obviously, if an entire project was ‘sold out’ their bankers would cheer ‘yippee’ and transition to their permanent financing would be as smooth as silk.
Reports were received by the ECT this past week suggest that a smooth transition to Solaris’s permanent financing is now in question.
Recall from a few years earlier that Walder Prado’s then ‘new construction’ resort project “the Vail Plaza Club” went into Chapter 11 Bankruptcy (~Oct-2008) and never actually made it to its permanent financing. (Click Here)
What was once known as the Vail Plaza Club is now called ‘The Sabastian’ and is advertised to be open – December 2010 – including an extensive remodel of 2008’s Vail Plaza Club.
Will some of Vail’s resort real estate finance history repeat itself? Time will tell. Keep your ear to the ground and your sunblock on, we should all know more in the next few weeks. This one’s worth watching…