Ownership Transfer of Flagstaff's Pine Canyon to SilverLeaf Financial Now Complete

SALT LAKE CITY, Aug. 26, 2011 /PRNewswire/ -- Earlier this month SilverLeaf Financial announced that Loan Tree Investments LLC had chosen to exercise their "option to put" the Flagstaff, Arizona luxury golf club and community "Pine Canyon" to the lender, SilverLeaf Financial. This week SilverLeaf reports that the transfer of ownership has been finalized.

SilverLeaf Financial acquired the debt of the 619-acre residential community and private golf course earlier this year in April 2011. Pine Canyon was one of eight loans acquired in a portfolio purchased from a midwest regional bank, the originator of the loans.  

At the time the loan was acquired by SilverLeaf, the respective borrowers Loan Tree Investments LLC had already filed chapter 11 bankruptcy. Sales of the real estate in the development had slowed to the point where the borrowers were unable to pay back their $24 million debt obligation when the loan was called due in mid-2010. Eventually the debtors and SilverLeaf reached an agreement in relation to a repayment plan in bankruptcy court.  

Soon thereafter, Loan Tree Investments LLC exercised their option to put the property to the lender, SilverLeaf. This week the documentation was finalized and the Pine Canyon property ownership transferred to SilverLeaf.

The loan's collateral consists of the private 18-hole golf course and clubhouse, "Camp Pine Canyon" recreational amenities, 3 luxury custom homes, 5 condos, 8 townhomes, 340 finished home lots, 11 cabin lots, 46 townhome lots, as well as additional undeveloped tracts of land located within the development.

SilverLeaf Financial intends on retaining ownership of Pine Canyon long-term and seeks to preserve the standards of excellence Pine Canyon holds, while making Pine Canyon the premier golf club and community for families in northern Arizona.

About SilverLeaf Financial

Headquartered in Salt Lake City, Utah, SilverLeaf Financial focuses on acquiring non-performing commercial loans secured by first position trust deeds. These assets are acquired from the FDIC, regional banks, special servicers and other financial institutions for the purpose of future monetization. For more information, visit SilverLeaf Financial's website http://www.SilverLeaf-Financial.com

Contact:

Campbell Dosch
SilverLeaf Financial
801-359-2855 ext 229
[email protected]

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SOURCE SilverLeaf Financial