The sale of the remaining residential and commercial condominiums in Hotel Terra is a sign of the Teton Village lodge’s strength and the recovering value of the Jackson Hole real estate market.
So say the investors, William E. Grady of Threefold Capital and Bryan Donohoe of RREP Management LLC, who created Bison Teton LLC to purchase the 20 units.
“We look forward to participating in the continued stabilization of the Jackson Hole real estate market and the maximization of the value of Hotel Terra alongside our fellow condominium owners and the greater Jackson Hole community,” Donohoe said in a Nov. 27 press release.
Grady described Terra as a “condo-tel,” in which residential units are owned privately and managed like a resort by Terra Property Management.
The units have been in limbo for the past year. Sweetwater Lodge LLC, a Boise, Idaho, company, owned the condos in the second phase of the Hotel Terra project.
In March, Wells Fargo Bank announced it had begun foreclosure proceedings against Sweetwater. County records and a legal notice published at the time of the foreclosure claimed Sweetwater took out a $28.2 million construction mortgage from the Jackson State Bank and Trust in 2007 and borrowed another $4.5 million in 2009 from Wells Fargo, which took over Jackson State Bank in 2008.
The legal notice said Sweetwater owed about $24.6 million on its 2007 loan and $3.85 million on its second loan.
In May, Wells Fargo took over the properties, paying $11.2 million in an auction in which the bank was the sole bidder. Bison Teton purchased its 20 lots from Wells Fargo on Nov. 15.
“It’s difficult on a project when you build in two phases, and in the second phase the developer is being foreclosed on,” said Rob DesLauriers, manager of Terra Property Management and president of the Terra Homeowners Association. “There are a lot of questions in the marketplace. We’re very pleased to see [the Terra units] in the hands of stable owners with a long-term vision.”
DesLauriers called Bison Teton’s acquisition of the rest of its unsold Terra units “a vote of confidence for the brand and for the Jackson Hole marketplace, too.”
“It feels like the market continues to recover,” he said. “The hotel business has recovered to a certain degree. It’s trending very positive, and the real estate market seems to be following suit.”
Threefold Capital is headquartered in Westfield, N.J., according to its website, and provides “financial advisory services to owner/operators of commercial real estate properties and investment management services to institutional investors. We are specifically focused on opportunities to restructure and recapitalize case flowing commercial real estate projects which have financially challenged or underperforming assets.”
RREP is the real estate branch of Unionville, N.Y., firm Ranieri Partners.
“We invest across the distressed residential real estate sector,” its website states.