Archive for May, 2009
Park City Condo Managment Companies–15 Questions To Ask
May 19th, 2009 Categories: Hotels & Lodging, Local Services, Real Estate
Let’s face it…
It’s been a tough couple of months for Park City & Deer Valley property managers.
With a couple of Park City’s largest property management companies announcing they would be late on rent payments due to owners…
Park City & Deer Valley second home owners and investment property owners might want to take a closer look at who’s managing their investments, and ask some due diligence questions.
By the way, these questions were forwarded to us by our friend Jonny Totten from the Park City Area Lodging Association. Thanks, Jonny!
Questions to Ask and Understand When Choosing a Park City or Deer Valley Property Management Company
· How many years has the Property Management Company been operating?
· Business hours: do they vary with different seasons?
· After hours: how are check-ins handled?
· How are emergency- maintenance problems handled?
· Are services sub-contracted or do you maintain a staff to handle housekeeping and maintenance services?
· Review contract in detail and understand the commission structure; i.e. is it based on gross revenue or net revenue?
· How are travel agent and/or credit card fees handled?
· What housekeeping and maintenance services are included? Is there a fee associated?
· Understand cancellation terms and the need for honoring existing reservations.
· How often are owner statements prepared? Review a standard year-end statement to understand credits and charges.
· How do you handle advance deposits? Do you have a trust account for owner rental revenue?
· How do you market your company, and more specifically, how will you market my property?
· What are the start-up costs?
· Do you have projections so I can know what to expect in upcoming years in addition to past years’ actual revenue #s for comparable type properties?
·What can you provide to me with regards to your company’s financial strength and ability to perform on your contractual obligations to owners?
Related Park City & Deer Valley Property Management Articles:
Deer Valley Lodging: Not Too Big To Fail
Park City Property Manager Late on Payment to Owners
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Promontory Foreclosure Auction: The New Owner is…
May 14th, 2009 Categories: Golf, Just Outside of Town, Lifestyle & Activities, Park City
Surprise! In a bizarre turn of events…
The original developers of Promontory–Arizona-based Pivotal Group–tendered a $70 million bid at the April 15 bankruptcy auction, stepped back in, and were able to re-purchase the controlling interest in the project for pennies on the dollar.
Pivotal Now Owns Promontory With Almost No Debt
The Credit Suisse Group lent $350 million to the club in 2005, and most of that money was taken out of the project as “return on capital” by the original developer.
“That is just wiped off the books,” Promontory Managing Director Rich Sonntag said about the debt.
Implausible as it may be, Pivotal now owns the existing club amenities and all future development potential, including the roads, golf courses, clubhouses, and development infrastructure with almost no debt going forward.
Was Bankruptcy Promontory’s Strategy From The Beginning?
Pivotal Promontory Managing Director Rich Sonntag insists that Pivotal CEO Francis Najafi did not orchestrate the bankruptcy to avoid repaying the loans.
Credit Suisse could have emerged as the winning bidder, but the lender withdrew its offer on April 16th.
Credit Suisse Cuts Losses, Not Willing to Increase Stake in Promontory
Credit Suisse had the opportunity to take over the property and protect a $275 Million investment by tendering a bid of $70 million and agreeing to keep the club amenities in operation in the years ahead.
A sign of the global banking crisis and mounting losses around the globe, Credit Suisse was not willing to invest additional funds and opted to walk away from the project instead.
Lenders Providing Financing at Promontory Again?
It should be easier for prospective Park City home buyers and existing Promontory owners to borrow/refinance their Promontory properties.
The bankruptcy had been a dark cloud over the community that prohibited risk-averse lenders from financing homes and lots at Promontory. It sounds like banks will look upon the project with more enthusiasm now that the auction is over.
What Does this Mean for Promontory Home Owners and Club Members?
The good news is that there’s finally some clarity regarding who will control Promontory moving forward.
Like it or not, the developer has the strongest financial position that they have ever had in the project. The infrastructure is almost complete, and there’s no debt!
The bad news is that some members/owners don’t trust Pivotal’s ability to keep the community on track, and they’re disappointed that a new developer didn’t step in and start fresh. Time will tell…
Time to Get a Great Deal at Promontory?
The supply/demand balance of homes at Promontory continues to strongly favor Buyers over sellers.
Since the bankruptcy auction, 4 homes have gone under contract. That matches the total number of homes sold in the previous 12 months!
Cutting right to the chase, Promontory was a popular spot for speculators when the Park City real estate market was booming. Many of those same speculators now can’t keep up with the payments, and we’re seeing quite a few foreclosures and short sales in the neighborhood.
Here are the homes currently available for sale at Promontory
Related Articles:
Talisker Club: World Class Skiing Meets Championship Golf
Red Ledges: Sales Success In Spite of Tough Economy
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Park City Property Manager Late on Payments to Owners
May 13th, 2009 Categories: Park City
David Holland Resort Lodging Follows Deer Valley Lodging’s Lead, Suspends Rents Payable to Park City Condo Owners
Chalk-up another victim to the nation’s financial crisis, as economic forces continue to affect Park City’s nightly rental industry.
A downturn in business during the 2008-09 winter season and the inability to get credit forced a second Park City, Utah property manager to suspend rental payments to owners for rentals in Feb and March, 2009.
More Condo Owners Wait to Receive Rents
In letters to unit owners dated March 27 and April 10 respectively, David Holland Resort Lodging stated that not paying owners moneys owned was “due in large part to the severe national economic crisis” and “in past years when we did not meet our rental projections we were able to use our reserves and borrowed funds to make up the temporary shortfall.”
David Holland Zatz, owner of David Holland Resort Lodging, confirmed Tuesday that he, too, sent a letter to about 300 condominium owners at the end of March announcing a temporary delay of payments.
Credit Crisis Hits Park City Property Managers
“Funding I thought would be available to me wasn’t. Not everyone has declined, so I’m still working on it,” he said.
With 25 years in town, Zatz has successfully navigated his company through the recession in the 1980s and the slowing following Sept. 11, 2001. The difference this time is that banks still lent money during those periods.
“It’s just a different environment right now,” he said. “We’ve weathered all the storms before. I’m confident we’ll be able work through.”
There are vendors affected as well as owners, but the accounts with Home Owners Associations are separate, he said.
Related Park City Property Management Articles:
Interviewing Park City Property Managers: 15 Questions to Ask
Deer Valley Lodging Delays Rent Payments to Owners
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Deer Valley Lodging–Not “Too Big To Fail”
May 13th, 2009 Categories: Deer Valley®, Park City, Real Estate
Deer Valley Lodging Delays Payments to Deer Valley Condo & Deer Valley Home Owners
Deer Valley lodging, a management company owned & operated by Premier Resorts International, sent a letter in late March 2009 to hundreds of property owners warning them that the company would be unable to make rental revenue payments to property owners for rentals in February & March, 2009.
According to the letter, “This extraordinary situation necessitates that we delay payment of current amounts owed to condominium unit owners under our Rental Agency Agreements. DVL plans to pay all owners the full amounts owed as soon as possible.”
The astonishing demise of one of Park City’s most influential property-management firms is being felt in many sectors of the Park City business community.
Because of the enormous range of services property managers offer, the line of unpaid creditors includes everyone from florists to plumbers.
Deer Valley Lodging Terminates Over 100 Employees
Since the announcement, Deer Valley Lodging–Deer Valley Utah’s largest property management firm–has been searching for solutions to its cash-flow challenges.
During the first week of May, Premier Resorts laid off over 100 employees, and announced a cancellation of accrued, unused vacation pay, sick leave, and personal time.
And the news hasn’t gotten any better for Premiere Resorts since the initial announcement…
Premier Resorts (DBA Deer Valley Lodging) Headed Into Bankruptcy?
Park City attorney Joseph Tesch filed a petition for involuntary Chapter 7 bankruptcy in federal court on behalf of a handful of condominium owners at The Lodges at Deer Valley, most of whom are also board members of the homeowners’ association.
According to Premier Resorts International, the parent company of Deer Valley Lodging , the filing “complicated” the company’s search for a solution to pay the 500 plus owners who have not received past-due rental revenues for February and March rentals.
The letter also said the filing “will likely affect our ability to attract financial assistance.”
It was hoped, briefly, that an investor would step in to assume the company’s financial obligations, but it appears now that will not happen. Deer Valley Resort is forming its own property-management arm.
Deer Valley Resort Steps Up, Forms New Lodging & Reservations Division
Premier Resorts, DBA Deer Valley Lodging, had use of the Deer Valley® name through a licensing agreement with Deer Valley Resort. Based on the recent turn of events, Deer Valley decided to revoke the licensing agreement and form a new company to handle the property management needs of the Deer Valley community.
The new company will provide property management services for Deer Valley condo and home owners, and community HOA’s (Homeowner’s Associations).
Kim McClelland will head the new company as Director of Lodging Operations for Deer Valley Resort Lodging and Reservations. Mr. McClelland is a longtime local lodging veteran who has also served as president of the Park City Area Lodging Association, the Park City Rotary Club and the Park City Chamber/Bureau. He is also involved with the Utah Office of Tourism and the Utah Ski Association.
We hope the new company will hire many of Deer Valley Lodging’s other key staff as well!
Related Park City & Deer Valley Property Management Articles:
Top 15 Questions to Ask Your Park City Property Manager
Park City Rental Agency David Hollands Delays Rental Payments to Owners
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