Solstice Collection Founder Graham Kos Lists Home For Sale

By: Destination Club News
Date: April 9, 2010

Graham Kos, the Founder of the ultra-luxury destination club The Solstice Collection, has listed his four bedroom, four and one half bath residence in Belvedere for $5.2 million.

Purchased in June of 2000 for just over $4 million, Kos has listed the 3,558 square foot home for $5.2 million. Paul Warrin of Sotheby's International Realty is the listing agent for the residence.

Just over a year ago, The Solstice Collection filed for bankruptcy. Known for its architecturally stunning residences, averaging $6.5 million each, Solstice had long dominated the ultra-luxury tier of the destination club industry, merging with competitor Parallel and dominating The Yellowstone Club's global spinoff, Yellowstone Club World.

In May of 2007, Solstice entered into a loan agreement with Fortress for approximately $23.6 million. Secured by the properties within the club's portfolio, Solstice defaulted on the loan, leading to the bankruptcy filing.

A group of members have attempted to revive the club. "Prior to filing for bankruptcy, the Debtors engaged the marketplace for financing," court documents stated. "The only individuals willing to finance the Debtors during a bankruptcy proceeding are 24 Members, who have provided the Debtors with $1.3 million in proposed debtor-in-possession financing secured by a senior lien on the Properties other than the liens of Fortress under the Fortress Agreement...In most destination club cases, the ability to keep the members satisfied and motivated to keep paying membership dues is a critical component of the value of the club and a major attractive selling point to a strategic buyer or plan funder. In these cases, a large segment of the Members are actually providing financing needed in these cases and are participating in the decisions relating to the future direction of the destination club. Having this type of active membership is a significantly positive factor in favor of the Debtors' ability to reorganize...As discussed previously, the Debtors have a motivated and interested membership with the financial means and desire to preserve the destination club. As such, the Debtors believe that, with time, a reorganization of the Debtors' businesses is viable."

Since then, little information has been made available about the future of the club. If you are one of the near 100 members attached to The Solstice Collection and would like to offer your own insight into the club, feel free to reach us at contribute@destinationclubnews.com.