Balsam Mountain Preserve, a mega-development in Jackson County, was sold to the highest bidder on the courthouse steps Monday (Jan. 25) in a closely followed foreclosure proceeding.
TriLyn, a private equity investment firm which initiated the foreclosure, was the highest and only bidder for $15 million and is now the new owner for 120 unsold lots on the property and all the recreational amenities, including an Arnold Palmer designer golf course, dining room, swimming pool, horse stables and myriad other features.
TriLyn was owed $20 million on an outstanding loan made to Balsam Mountain Preserve by developers Chaffin and Light. But the total had grown to about $22 million due to legal costs and interest since defaulting.
Prospective buyers have 10 days to file an upset bid. Each time there is an upset bid, the 10-day clock is reset.
The fact that TriLyn bid only $15 million when it claims it is owed $22 million shows they may be willing to part with the property and take a loss on the investment in exchange for cold, hard cash.
The foreclosure moved at a relatively fast pace, with just five months passing since the lenders made their intent known and foreclosure took place. Balsam Mountain Preserve developers attempted to stall the process longer, hoping to find financing to bail themselves out, pay off the lender and retain ownership of the development, but were unable to do so in the amount of time they had.