David Holland sold to Phoenix Realty
July 21, 2009
New York based Phoenix Realty Group through its affiliate PRG Resort Management has purchased the nightly rental business David Holland’s Resort Lodging (DHRL).
This purchase only pertains to the nightly rental business, not property management and other services performed for home owner associations.
Presumably the parent company of DHRL, Crossways Corporation owned by David Zatz, will continue that operation. Zatz’s office declined to comment on Tuesday but said it has more information to release later this week.
Employees of DHRL’s nightly rental operation will now become employees of PRG Resort Management.
The purchase was made July 15 and condominium owners were notified last Monday.
The letter from Phoenix Realty signed by president Keith Rosenthal said the company "anticipates a seamless transition to be completed in mid to late September."
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"We want to assure you that, both during the transitional period and thereafter, you will be working with the same experienced staff and employees, and receiving the same high-quality services, as you have come to expect from DHRL over these past many years," it reads.
In return for signing new contracts with PRG Resort Management, the company promises to repay all monies owed to condo owners for the 2008-2009 ski season over a three-year period in four installments, plus interest.
The letter also promises that all of an owner’s portion of future rental revenue will be deposited in a separate account.
Michael Fried, founder and CEO of Phoenix Realty, said on Tuesday he believes this is a "win-win situation."
"It provides home owners the vast bulk of which have been satisfied with the (DHRL) team’s performance for the past 19 years the opportunity to continue working with that group and receive full recompense for claimed rental revenue for 08-09," he said.
The new deal brings in an experienced and sophisticated asset-management team as new owners and supervisors of DHRL, he said.
While this is good news for condo owners who wish to stay with Zatz and his team, the announcement still leaves questions unanswered for owners who want to be paid their owed spring revenues, but do not wish to sign with the new company.
Phoenix Realty said it did not assume any of those liabilities in the acquisition, presumably leaving Zatz with that responsibility.
Park City attorney Joe Tesch representing some of the affected parties said at first glance it looks to him that Phoenix Realty would be responsible since it bought the entirety of the nightly rental business, assets and debts.
In response to this question, Zatz’s office said more information would be coming soon.
Condo owner John Belbute said via email on Monday that he did not like that this question was left unanswered. He also didn’t like the repayment plan or the amount of interest offered by Phoenix Realty in the installments.
"I am leaving them because they have stopped communicating. I am going to proceed to take legal action. I have terminated our relationship and am also willing to go on the record that they have completely failed to communicate how they are planning to repay any owner who will not sign with them. I’m also willing to say that I offered to stay with them if they would negotiate the terms," he said.