The Pad is a hybrid hotel and hostel at 491 Rainbow Drive in Silverthorne. (Courtesy of The Pad/David Lauer)
The Pad, a bankrupt hotel and hostel in Silverthorne, will be sold for $10.1 million to an investor from Steamboat Springs if a bankruptcy judge signs off on the deal.
That price tag is significantly lower than what it cost to build The Pad, half of what it was valued at just last year, and far less than what The Pad still owes its largest lender.
The Pad opened in November 2021 after 20 months of costly construction. It has 36 rooms and 101 beds, plus meeting rooms, decks with hot tubs and an independently owned bar. The husband-and-wife duo of Rob and Lynne Baer, who live in Silverthorne, created the Pad.
Its construction was funded by a $12.3 million loan from BRMK Lending out of Seattle and $2.8 million from Lever Capital in New York. When the Baers were unable to repay, The Pad was placed in receivership last September. It went bankrupt the following month.
On Aug. 15, Blue Rhino Investments agreed to pay $7.5 million for The Pad and to assume $2.6 million of the Lever loan. BRMK will receive $6.6 million from the sale — half of the $13.3 million that The Pad said BRMK is owed and far less than the $18 million BRMK says it is owed.
BRMK and other companies that are awaiting money from The Pad have until Sept. 6 to object to its sale. BRMK’s spokespeople and its attorney, Peter Murphy with the Denver law firm Markus Williams Young & Hunsicker, declined to say this week if BRMK will object.
One of the shared bunkrooms inside The Pad, a hotel and hostel in Silverthorne. (Thomas Gounley/BusinessDen)
Blue Rhino, which is owned by Stephen Caragol, plans to hire the Baers to manage The Pad, according to court documents filed in its bankruptcy case. Blue Rhino has been a minority shareholder in The Pad, lawyers for the hotel and hostel told the bankruptcy court.
“The sale contract is the highest and best offer received,” they say, “and what the debtor believes would be the highest and best offer following a full and robust marketing.”
The Pad opted not to hire a broker “but did consult with Hilco Realty and CBRE,” it told the U.S. Bankruptcy Court on Aug. 16. The Baers believe $10.1 million “is more than would be received through a full marketing process (and) without the need to incur a commission.”
The Pad’s attractiveness was hampered by its uniqueness, it told the bankruptcy court, “as a majority of buyers want to purchase traditional hotels, particularly a flagged hotel with a franchise as opposed to an independent hotel” that is also a hostel. To make matters worse, revenue declined when a receiver ran The Pad “and has struggled to recover.”
In June, the most recent month it reported financials for, The Pad had $116,000 in receipts and $189,000 in disbursements. In May, it took in $130,000 and spent $110,000.
Dan Emert of Prime Investment Properties in Steamboat Springs worked as the buyer’s broker. He did not respond to requests for an interview with himself or Caragol this week.
The Pad has been represented by bankruptcy attorneys Keri Riley and Jonathan Dickey with the Denver law firm Kutner Brinen Dickey Riley.
The Pad is a hybrid hotel and hostel at 491 Rainbow Drive in Silverthorne. (Courtesy of The Pad/David Lauer)
The Pad, a bankrupt hotel and hostel in Silverthorne, will be sold for $10.1 million to an investor from Steamboat Springs if a bankruptcy judge signs off on the deal.
That price tag is significantly lower than what it cost to build The Pad, half of what it was valued at just last year, and far less than what The Pad still owes its largest lender.
The Pad opened in November 2021 after 20 months of costly construction. It has 36 rooms and 101 beds, plus meeting rooms, decks with hot tubs and an independently owned bar. The husband-and-wife duo of Rob and Lynne Baer, who live in Silverthorne, created the Pad.
Its construction was funded by a $12.3 million loan from BRMK Lending out of Seattle and $2.8 million from Lever Capital in New York. When the Baers were unable to repay, The Pad was placed in receivership last September. It went bankrupt the following month.
On Aug. 15, Blue Rhino Investments agreed to pay $7.5 million for The Pad and to assume $2.6 million of the Lever loan. BRMK will receive $6.6 million from the sale — half of the $13.3 million that The Pad said BRMK is owed and far less than the $18 million BRMK says it is owed.
BRMK and other companies that are awaiting money from The Pad have until Sept. 6 to object to its sale. BRMK’s spokespeople and its attorney, Peter Murphy with the Denver law firm Markus Williams Young & Hunsicker, declined to say this week if BRMK will object.
One of the shared bunkrooms inside The Pad, a hotel and hostel in Silverthorne. (Thomas Gounley/BusinessDen)
Blue Rhino, which is owned by Stephen Caragol, plans to hire the Baers to manage The Pad, according to court documents filed in its bankruptcy case. Blue Rhino has been a minority shareholder in The Pad, lawyers for the hotel and hostel told the bankruptcy court.
“The sale contract is the highest and best offer received,” they say, “and what the debtor believes would be the highest and best offer following a full and robust marketing.”
The Pad opted not to hire a broker “but did consult with Hilco Realty and CBRE,” it told the U.S. Bankruptcy Court on Aug. 16. The Baers believe $10.1 million “is more than would be received through a full marketing process (and) without the need to incur a commission.”
The Pad’s attractiveness was hampered by its uniqueness, it told the bankruptcy court, “as a majority of buyers want to purchase traditional hotels, particularly a flagged hotel with a franchise as opposed to an independent hotel” that is also a hostel. To make matters worse, revenue declined when a receiver ran The Pad “and has struggled to recover.”
In June, the most recent month it reported financials for, The Pad had $116,000 in receipts and $189,000 in disbursements. In May, it took in $130,000 and spent $110,000.
Dan Emert of Prime Investment Properties in Steamboat Springs worked as the buyer’s broker. He did not respond to requests for an interview with himself or Caragol this week.
The Pad has been represented by bankruptcy attorneys Keri Riley and Jonathan Dickey with the Denver law firm Kutner Brinen Dickey Riley.
