Foreclosure Proceedings Begin – Montelucia InterContinental Resort & Spa
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Montelucia in PV is targeted for foreclosure
The lender behind the new Montelucia InterContinental Resort & Spa (opened Nov 2008) in Paradise Valley has begun foreclosure proceedings against the project.
Eurohypo AG has filed a notice of default against the property at 4949 E. Lincoln Drive, its 293-room resort and 12 unsold single-family detached villas.
The project’s developer, Crown Montelucia Associates LLC, wants to avoid foreclosure, “has worked diligently to avoid this outcome,” and is working on several solutions, according to a statement issued by resort owner and developer Robert Flaxman.
The amount owed to Eurohypo AG is “significantly less” than the original $180 million loan, Flaxman added. Eurohypo AG is a German-based real estate bank.
The 34-acre Montelucia opened Nov. 4, 2008.The resort remains open and will continue to exist regardless of the foreclosure proceedings due to a previously established long-term management agreement.
Valeriano Antonioli, resort and spa managing director, said it will be business as usual, noting that the proceedings are a legal matter between the resort and its owner. He said the resort has exceeded its goals for its first three months of operation, and this week has operated at 100-percent occupancy.
Eurohypo AG also believes it is in its best interests to keep the resort open and advanced funds to pay bills this week, according to the statement.
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