Basalt real estate group purchases bankrupt Lakota Canyon Golf Club
Development plans could move forward for about 400 homes in the Lakota Canyon area after the Basalt-based Romero Group acquired the property for about half its appraised value.
Located near New Castle, the Lakota Canyon Golf Club and 122 acres of land designated for residential development were purchased in a bankruptcy auction for $1.5 million, said Dwayne Romero, Romero Group president and CEO.
“It was a very good deal,” Romero said. “Especially considering it was appraised in the high $3 million range.”
Previously owned by Warrior Acquisitions LLC, the company filed for a Chapter 11 bankruptcy after failing to make a $500,000, semi-annual interest payment in 2019.
Warrior Acquisitions cited a downturn in the golfing industry as a factor in the bankruptcy, but Romero said the pandemic led to a resurgence of the sport.
“Golf as an enterprise and a franchise is exploding right now,” he explained. “COVID-19 has helped people rediscover the outdoors, and several courses in the area have seen record summers this year.”
The golf course covers about 195 acres and includes a 7,000 square foot club house and restaurant, maintenance facility and vehicle facility, Romero said.
Created in 2016, the Romero Group has about 80 members and four principals, including Romero. A real estate group and commercial investment owner, Romero’s footprint includes majority ownership of the Snowmass Mall in Snowmass Village.
On the residential side of Lakota Canyon, the group intends to move forward with plans to develop about 400 homes on the accompanying parcels.
“It provides the opportunity for development to fill the long-term need for obtainable housing,” Romero said. “There’s clearly a shortage of housing in Colorado and affordable opportunities are tight. We see the need for something that someone on a reasonable salary can afford and maintain.”
Although the development plans are still in the works, he said the housing could consist of single-family homes, townhomes and condominiums. However, the group is not in a rush to build all 400 residences soon.
“The acquisition price allows us to be patient,” Romero said. “There is no quick dash to the finish line. This could be years and years in development.”
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