The developer of an enormous Ute Avenue mansion that at one time was the most expensive home on the market in Colorado is being sued by a lender who has foreclosed on the residence, which is now in receivership, Aspen Daily News reported today. Aspen developer Leathem Stearn contends a Pitkin County judge’s receivership order for the nearly 19,000-square-foot home was improper and has filed for federal bankruptcy to try to hang onto it. Built in 2011, the mansion drew media attention for its numerous amenities, including a lazy susan for vehicles in the five-car garage, a two-lane bowling alley, 40-foot ceilings and a floating staircase, a 30-foot rock-water wall and an indoor saline pool and hot tub. It also has seven bedrooms and 11 bathrooms, along with ski-in access from the nearby Ajax Trail. Stearn told CNBC in 2013 that it was a “lifestyle compound.” It was initially listed for $45 million before the price was reduced to $39.7 million. The home has never sold, according to Pitkin County Assessor records. Stearn sued Dutch businessman Paul J.A. van Hessen, the holder of $16.8 million in loans, in May, alleging that van Hessen is falsely claiming ownership of the home. Stearn also alleges the lender has fouled efforts to market and sell the home, and develop an adjacent house and common elements the residences would share. Van Hessen sued Stearn in June, saying that the developer has failed repeatedly to pay back the loans. Judge Chris Seldin of Pitkin County District Court in June ruled in van Hessen’s favor, putting the property into receivership. However, ownership of the property is not settled. The case has been removed from Pitkin County District Court and is now in the hands of a federal judge after Stearn filed for chapter 11. It was the second time since 2010 that Stearn has filed for bankruptcy. To fund the development, Stearn received loans from various entities, court filings show.
