Montage Goes to the Bank

When they came to town in 2006, L3 Development of Chicago hit the ground running. They had purchased the old Golden Phoenix hotel / casino and quickly gutted the structure down to the steel framework. Two floors were added to the top and the entire building has been transformed into a 24 story mix of townhomes, lofts, penthouses, and rowhouses, with street level retail space. I've watched the progress since the initial demolition and it has turned into a beautiful building. However, the ugly economy has led Fernando Leal, developer of the Montage condominium project, to relenquish ownership of the property to Chicago's Corus Bank.

Even though L3 is current on its loan, Leal said the decision was made to enter into a rare transaction called a "deed in lieu of foreclosure," whereby the bank assumes ownership of the property in exchange for releasing the borrower of all loan obligations. To ensure that things keep moving forward, Leal said L3 will continue to manage the project as part of the agreement. About 40 percent of the 377 units have been sold and a certificate of occupancy was scheduled to be issued on December 17.

Downtown Makeover has more detailed information about the Montage's conundrum, including the text of Leal's letter to buyers explaining what L3 is doing and why it is turning the Montage over to Corus Bank.

Sources: Downtown Makeover and the Reno Gazette-Journal

Sign up to receive the Reno / Tahoe Newsletter and stay on top of what's happening.