The largest ranch in the Roaring Fork Valley is owned by a Bahrain-based investment company that recently filed for Chapter 11 bankruptcy in New York City, InsideRealEstateNews has learned.
The 813-acres Aspen Valley Ranch, currently on the market for $52 million, is the closet ranch to Aspen and is one of the assets in the bankruptcy reorganization of Arcapita Investment Holdings Ltd., which controls about a $2.5 billion portfolio of real estate investments, private equity, venture capital and infrastructure.
The Aspen Valley Ranch, which initially had been listed at $88 million and then $59 million before its asking price was reduced by another $7 million last month, is part of the Arcapita International Luxury Residential Development I, which also owns a project in Steamboat Springs.
In addition to the Colorado properties, the luxury residential development group holds a total of $689.4 million in resort properties, including a 4,300-acre development in Tuscany, Italy and a 15-acre beachfront parcel on the island of St. John in the Virgin Island.
Joshua & Co. listing
Aspen Valley Ranch is the closest ranch to Aspen.
“Aspen Valley possesses the unique traits of both a historic, working ranch and a luxurious recreational getaway, with senior water rights, flat, irrigated pastures, and a new 10-stall horse barn, as well as vast, adjacent public lands, trails, a recently enhanced stream, ponds, wildlife, and awesome Elk Range views,” according to Aspen-based Joshua & Co., which is listing it. The real estate company went on to describe it as, “New rustic/chic 5,750 square foot-foot home and 1,900 square-foot ranch manager cabin in place, along with the approvals to either build a whole lot more or preserve some or all of it with a conservation easement.”
A report in January, before the most recent price reduction, listed it as the fifth most expensive ranch for sale in the U.S.
The listing price of Aspen Valley Ranch has been slashed by 41 percent from its original asking price.
The main residence was designed in 2009 and contains four of the ranch’s seven bedrooms. Features include inlaid Argentinian maroon leather flooring, a 30-foot-tall room with views overlooking Elk Range and ski terrains, a spa off the back patio, a couple’s steam shower and a copper tub in the master bath.
The ranch also includes senior water rights and a 10-stall horse stable
A buyer who put down 20 percent and received a 4.25 percent loan would have monthly principal and interest payments of $203,743 on a 30-year loan.
Also part of the bankruptcy filing is One Steamboat Place, which includes 38 condominiums and 42 private residence club units. One Steamboat filed for foreclosure in 2011.
Arcapita bought both Colorado properties in 2007, before the real estate market collapsed.
The global recession and the debt crisis in the Eurozone are the two primary factors leading to Arcapita’s bankruptcy filing, according to the filing. The asset values fell and the recession made it difficult for the company to access additional capital. The company was the borrower under a $1.1 billion Sharia-compliant debt facility that was to mature on March 28, but it was unable to repay. Instead, the company filed for bankruptcy.
One Steamboat Place, which filed for foreclosure last year, is part of a Bahrain company’s bankrupty.
“After reviewing all the available options with management and its financial and legal advisors, the board has agreed that a filing for protection under Chapter 11 is not only a necessary step, but the best course of action, to safeguard the interests of the bank’s stakeholders,” Mohammed Abdulaziz Aljomaih, chairman of Arcapita’s board, said in a statement when it announced the bankruptcy on March 19. “It will allow Arcapita to restructure its balance sheet and reorganize its business to maximize recoveries for all creditors and other constituencies. This was a difficult decision. But after lengthy review of all the alternatives open to us, there is no question that this is the right course of action, which we are taking with the support of the board. Arcapita is committed to completing this reorganization as quickly and efficiently as possible.”
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