German lender Hypo Real Estate Capital has filed suit against Related
Cos. for a $194 million judgment after the Manhattan-based developer
allegedly defaulted on its long-delayed resort project in Snowmass
Village, Colo., at Aspen.
The lawsuit, filed Friday in New York State Supreme Court, names
Related and Patrick Smith, former president of Related Westpac, and
former president of San Luis Obispo, Calif.-based Westpac Investments,
which developed Snowmass under a joint venture with Related. The 1
million-square-foot project was to include 600 luxury residential
units, shopping, restaurants and other amenities.
The suit alleges that Hypo loaned $520 million in March 2007 for land
and the construction of the base village and that affiliates of the
developer guaranteed part of the principal. Hypo alleges that it
accelerated the loan July 6 following a series of defaults by the borrower and that $386 million came due immediately.
According to the suit, the developers signed guarantees for Phase III
payment advances for $37.5 million and $160.7 million, for a total of
$198.2 million. The lender is demanding a judgment amount of $194.7
Attorney Celia Barenholtz of Cooley, representing Hypo, was not
immediately available for comment. Neither Related officials nor Smith
were immediately available for comment.