ASPEN — An unpaid loan balance of $36.3 million has put the historic Hotel Jerome on the auction block.
The 92-bedroom Main Street hotel, built in 1889, is scheduled go to a foreclosure auction sale Jan. 27, Deputy Treasurer Desiree Wagner said Monday.
The Pitkin County Treasurer’s Office opened up foreclosure proceedings for the property Thursday when it filed a “notice of election and demand for sale.” The notice says LCP-Elysian Aspen Owner LLC has an unpaid balance of $36,292,781 owed to Jerome Property LLC, which holds the deed of trust on the property. Jerome Property LLC was formed Aug. 25 in Delaware, according to public records.
“The covenants of said deed of trust have been violated due to the failure to make the final payment due at the maturity date,” the notice said.
Records at the Pitkin County Clerk & Recorder’s Office show that Jerome Properties LLC bought the deed of trust from Aurora Bank, an affiliate of Lehman Brothers Holding Inc., on Aug. 31. The original note holder was Morgan Stanley Mortgage Capital Inc., data shows.
