Yellowstone, Boyne Buy The Club at Spanish Peaks
SAM Magazine—Big Sky, Mont., July 25, 21013—CrossHarbor Capital, which owns the Yellowstone Club, and Boyne Resorts, which owns Big Sky Resort, have jointly purchased The Club at Spanish Peaks, a 5,700-acre upscale residential development near Big Sky, for $26.1 million. The private community filed for Chapter 7 bankruptcy in 2011.
In a joint statement, the two companies said, "On Friday, July 19, 2012, an affiliate of CrossHarbor Capital Partners LLC, in partnership with Boyne Resorts, closed on the purchase of the assets of Spanish Peaks out of the Chapter 7 bankruptcy proceedings. CrossHarbor and Boyne acquired Spanish Peaks because we believe it has incredible long-term potential. Together, we recognize that the successful development and completion of Spanish Peaks is essential to the future of Southwest Montana and to ensuring the Big Sky area remains a world-class resort destination."
Sam Byrne, managing partner of Boston-based CrossHarbor and a property owner at the Yellowstone Club, released an additional statement of his own. "I am excited by the opportunities provided by this transaction and the partnership that has been established with Boyne Resorts,” the statement read. “I believe this investment will result in important benefits for Southwest Montana, preserving and creating jobs and attracting further investment in the region. I look forward to working with Boyne Resorts, and all of our friends and neighbors throughout the region, as we create a path forward that ensures Spanish Peaks remains a premier Big Sky destination."
CrossHarbor had been angling for Spanish Peaks for months. On April 19, CrossHarbor acquired the secured debt owed on the assets of Spanish Peaks, which were valued at $122 million, for an undisclosed amount. CrossHarbor then submitted a $20 million credit bid for Spanish Peaks to the bankruptcy trustee. That allowed CrossHarbor to counterbid if another group topped its initial bid. And even if CrossHarbor’s bid had failed, the company, as a secured creditor, would have received its cash back from the winner. But CrossHarbor was the high bidder at the auction, held in June.
It is not clear how, or when, Boyne Resorts became a partner in the deal.