About Park City's Promontory

Just in the past few days we have seen 2 homes go under contract at Promontory.
Maybe the activity can be attributed to the reorganization plan...but that has not been agreed upon by the court...so then again, maybe not.
None the less, any activity is good to see. I would have to imagine that there is some pent up demand due to people holding off until the bankruptcy is settled....Not to say that the market at Promontory will do a one-eighty when the bankruptcy is finally settled, but I would look for a good bit more activity than what we saw this summer.
People who have been looking for a while know that the project has value, will be a good long term investment/second home, and that now is a good time to be a Buyer in the market at Promontory. Maybe it will take a year for the "blackeye" of the bankruptcy to clear or maybe it will take 3 years...Nobody can predict that with certainty, but over long-term it will be a jam up project.

The two homes at Promontory that went under contract are:
-West View home at $1.599m; 4bd/6ba, 5968 sq ft, $400psf....views of all 3 ski resorts
-Another home in the West View neighborhood at $2.295m; 4bd/5ba, 4500 sq ft, $510psf...nice views here too!

The Screaming Deal is also at Promontory, and in a similar location as the 2 above:

-Short sale at Promontory down to $899,000; 4bd/6ba, 5339 sq ft, $168psf...nice views, backs to open space, easily worth somewhere in the mid-$1m's, needs landscaping, but an awesome deal!!!

Below is a brief recap of what has taken place over the past month in the Promontory bankruptcy hearings.

As you will see, a reorganization plan that is headed up ny Credit Suisse has been proposed by Pivotal , but nothing has been agreed upon. The agreement will hopefully take place after Thanksgiving. The way it sounds, Pivotal (the original owner of the project) seems to be mostly cut out when it comes to the future of Promontory.

Here is the recap and schedule of future events:
January 31, 2009 - Target date for emerging from Bankruptcy.
December 5, 9:00 am - Continued Disclosure Statement Hearing (if necessary).
December 4, 9:00 am - Hearing on adequacy of Promontory's proposed Disclosure Statement.
December 1, 4:30 pm - Deadline for objections to Promontory's proposed Disclosure Statement.
November 7 - Promontory's Bankruptcy Plan and Disclosure Statement (let us know if you'd like to see these documents as we have them and are happy to discuss) was amended on Monday, November 10
November 3 - Pivotal Promontory TRC, LLC (subsidiary of Utah 7000, LLC, which holds liquor licenses for Promontory debtors) filed bankruptcy for convenience of reorganization plan.
October 31, 11:45 pm - Promontory filed its proposed reorganization plan and disclosure statement. Neither is in final form. The Committee anticipates that both will be amended by November 10. The current version of both documents are posted on this website, above and to the left of this comment.
October 22, 2:30 pm - Hearing stricken: Rescheduled hearing on Promontory's motion to assume Sales Center, Park City, and Deer Valley leases. (Credit Suisse has withdrawn its objection, and Promontory's motion will be approved).
October 20, 7:30 pm - After Committee voted to support Promontory's assumption of the Sales Center, Park City, and Deer Valley leases, Credit Suisse withdrew its objection.
October 16, 9:00 am - Hearing stricken. Bankruptcy Court heard arguments about Promontory's plan to assume Park City and Sales Center Leases on October 22 at 2:30 pm.
October 15 - Credit Suisse objected to Promontory assuming Park City and Sales Center Leases.
October 10, 9:00 am - Hearings stricken. Hearings on (i) Second Lien Lenders' Proof of Claim Stipulation with Promontory, and (ii) Acushnet's Application for Allowance and Payment of $7,910 Administrative Expense Claim. The Stipulation was approved, there being no objections, and the Application was granted.
October 9, 9:00 am - Credit Suisse and Promontory resolved their differences and the hearing on Credit Suisse's Motion to Compel Document Production by Promontory was cancelled.
October 7 - Promontory proposed to assume its leases of (i) Sales Center, (ii) Deer Valley, and (iii) Park City. Promontory also proposed to take more time to decide whether to assume or reject its lease of a Cabins model home.

Feel free to contact us at (Rob) 435.729.0022 or via email robalday@yahoo.com for more information about Promontory in general.

UPDATE ON PROMONTORY BANKRUPTCY SITUATION

Late last Friday night the attorney's for Pivotal Group, the developer of Promontory, filed their plan of reorganization with the Bankruptcy Court. Because we know you do not want to wade through the 175+ pages of legal jargon, here are the highlights:

-A new entity will be formed to take over the development
-The new entity will be headed up by Credit Suisse.
-The original development plan will stay in place. This means the 2 to 3 remaining golf courses and other amenities will still be part of the plan.
-Certain employees will remain.
-Lot sales will resume and sales prices must be at a certain level....no fire-sale....good for all us members!

That is the basic jist of it. The creditors have the next month to look at it, then their objections will be heard around Dec. 4, 2008. Promontory looks to emerge from bankruptcy in January 2009. The next few months will be prime buying time, if you are looking to get involved in the development long term! It truly is a spectacular place!

The questions that remain are:
-What will Pivotal's role be moving forward?
-What entity will run the clubs operations?

Stay tuned for more information.

Promontory has its next scheduled court date next Monday, June 23. So while there is no news yet, next Monday afternoon should be interesting. Other than that, there are some good deals in the development, and the golf season in cranking up & running beautifully.

Just in the past day we have seen some decent activity in the market 36 properties came on the market, 10 closed, and 8 went under contract. The high points being:

NEW:
-Promontory lot in the Painted Sky neighborhood at $769,000. I would let this one sit and see how desperate they are. It is priced well, but let it marinate.
-Promontory home at $2.35m; 3bd/5ba, 5030 sq ft, $467 psf, and they are offering Seller Financing...contact me for those details 435.729.0022 or robalday@yahoo.com
-April Mountain townhouse at $1.375m; 4bd/4ba, 2925 sq ft, $470 psf....there are quit a few of these on the market, and I love this area....you are in the middle of town, but still secluded.
-Chatham Hills home for $1.499m; 6bd/4ba, 4162 sq ft, $360 psf is a bit high...again I like this area for the same reasons as above.
-Deer Crest home ar $5.935m; 5bd/7ba, 6707 sq ft, $885 psf...a bit high, but Deer Crest is one of the premiere neighborhood in Deer Valley
-A development parcel at the "gateway" to Heber for $16m; Beautiful 40.39 acres located on the SW corner of HWY 40 and River Rd. in Heber. Close to the Provo River & nature preserve. Land had entitlements for 244 eru's & 120,000 sq ft of commercial space. Current owner has a conceptual mixed use village plan with country approvals. Upside potential for investment or J.V. partner. I have looked at this so give me a call/email if you have questions....It could be a money maker!

CLOSED:
-2 Red Ledges lots at $525,000 and $425,000.
-Lot in Lower Deer Valley's Hidden Meadows neighborhood for $1.25m.

PENDING:
-Residence at the Chateaux in Deer Valley's Silver Lake Village for $520,000; 4bd/5ba, 2800 sq ft, and a one-sixth interest
-Pinnacle unit in Lower Deer Valley at $960,000; 4bd/4ba, 3511 sq ft, $274 psf it a steal for these units....They rent like wildfire!

While Glenwild continues to sizzle, Promontory is a bit slower...just as one might think with the cloud of organization hanging over the development.

Here is a snapshot of Promontory YTD (6/10/08):

-111 lots on the market...which is just an absurd number to say the least.
-2 lots have closed at $310,000 and $705,000
-7 lots are pending sale.

The homes and cabins fair a little better with:

-68 on the market at an average price of $2.9m and average price per sq ft of $509...which is still holding up.
-3 sold at $1.7m, $1.8m, and $2.3m and their average ppsf is $518.
-15 under contract at an average of $2.22m and average price per sq ft of $495.

There is a lot of inventory on the market out there, and prices will probably continue to come down this summer. Hopefully a deal will be in place by the first of the year for how the development will move forward...all signs point to yes, that it will be resolved by then.

With that being said I truly believe that this summer/early fall will be the best time to buy out there since there were no paved roads. The real estate down turn coupled with the Promontory bankruptcy fiasco, will bring out some golden opportunities in the development. I am telling people to look now and identify a few lots or homes that they would want to purchase. Maybe wait a month or so, then start putting in offers and see what flies. There will be desperate sellers. In a few years, we will all look back and wish we would have pulled the trigger.

There is a reason that all 3 parties are trying to come up with deals to get the development from the others...Promontory will become one of the best communities in the West after this re-organization takes place, and the market turns back around. Again Dr. Yun is predicting 30% to 50% appreciation for us in the next 5 years! So contact us if you are interested in getting some information on Promontory real estate. robalday@yahoo.com or 435.729.0022