The embattled owners of a building in downtown Aspen were foreclosed on yesterday.
Aspen Public Radio’s Carolyn Sackariason reports.
No one showed up on the courthouse steps to make a bid on the Hopkins Avenue property, which was going for a mere $5.58 million.
Alpine Bank began foreclosure proceedings this past summer, after the developer of the storied building, JW Ventures LLC, defaulted on its promissory note.
The building, which opened in 2009, is home to a penthouse condominium, three affordable housing units, a defunct nightclub and restaurant, and an art gallery. The foreclosure doesn’t include the penthouse or affordable apartments.
It has been the subject of several lawsuits, including one brought by the city government, which resulted in a judge ordering JW Ventures to pay the condo owners $1.3 million dollars. That’s because the developer unlawfully represented to them that they would have exclusive use of the east door and elevator to their two-story penthouse — in order to inflate the sales price. The multi-million-dollar judgement represents the property value loss for having to share their entrance.
The judge noted JW Ventures was having difficulty paying its development loan in 2011 when it sold the penthouse for $6 million dollars.
John Provine, one of the principals of JW, was at the foreclosure auction Wednesday. He says timing was not on he and his partners’ side when they finished the building. And he seems OK with letting it go.
“Good-bye and good luck. It’s an end of era. It’s part of being in the development business. The recession screwed all of us,” he said.
The couple who own the penthouse have sued Provine and his partners as well. The beleaguered couple, who have filed dozens of noise complaints to police, argue that JW violated the real estate contract when it allowed a nightclub to operate in the basement. The couple also has an active lawsuit concerning the building in U.S. District Court.
Meanwhile, developer Mark Hunt had the property under contract. He, along, with several other entities, have liens on the building. They have eight days to notify Alpine Bank that they intend to pay the note and another 19 days to come up with the cash. Sydney Tofany is with the Pitkin County Treasurer’s Office.
“The certificate of purchase does not transfer title,” she said.
So at this point, no one technically owns the building but that will soon change. Who it will be is anyone’s guess.
Carolyn Sackariason, Aspen Public Radio news.