Note: Looks like we spoke too soon!
Here is a Promontory Update from February 24, 2009.
This was our original Promontory Post...
Kudos to Credit Suisse for Playing Their Hand Right!
In the volatile world of real estate development, developers and their financial backers invariably face-off.
This time, cool heads prevailed.
From where we sit, it sounds like the Pivotal/Promontory Group and Credit Suisse/investors put their heads together and forged an everybody-wins solution, averting what could have been an ugly outcome.
Who Knows the Real Story Behind Friday's Promontory Press Release?
We weren't at the negotiating table, so this is purely speculation on our part, but...
What better way for bankers to secure their investment than to step up and buy the whole enchilada?
Was the "Mortgage Crisis" to Blame For Rising Inventory?
The last year hasn't been an easy period for existing Promontory property owners or for the developer as they have competed against one-another to sell lots.
We watched with keen interest as "re-sale" inventory of vacant lots at Promontory swelled to nearly 100 lots over the past year, not including lots available directly from the developer.
When the circle of repeat buyers at Promontory--the same guys that kept puchasing additional lots in each new developer release--couldn't get financing for additional purchases at Promontory, was there trouble in paradise?
We've noticed the Summit County Notice of Defaults referencing the occasional Promontory parcel, but it doesn't seem to be a disproportionately large number of pre-foreclosures in Promontory relative to the rest of the Park City real estate market.
Any Promontory Cognoscenti Want to Comment?
Please click the "leave a response" link below to share your thoughts on this big announcement.
Here's the Promontory Press Release:
PARK CITY, UTAH, Jan. 25, 2008
Promontory, a luxury second-home community in Park City, and a syndicate of investors led by Swiss investment bank Credit Suisse have reached an agreement in principle on the sale of the Promontory operating and development companies. Parties are currently negotiating definitive documents for the closing, anticipated in February, 2008.
The agreement provides for retention of key Promontory management personnel and the continued operation of Promontory as one of the nation's premier private club communities. Said Rich Sonntag, Managing Director of Promontory, "Though the Utah resort real estate market has remained strong, it is valuable for Promontory to be aligned with such financial strength while awaiting a rebound in the national real estate market."
For additional information, contact: Rich Sonntag, Managing Director, Promontory, 435.333.4025.