This was posted on the renorealtyblog.  I thought it was worthy of reposting here.  Any comments?  Start copy:

When the Siena sold on the Bankruptcy Court’s equivalent of the courthouse steps for $3.9M on Wednesday, terms of the closing were 48 hours.  Yet the deal still hasn’t closed.  What’s the hap?

The mortgage holder sent this letter to their investors.  The assertion that the investors might reap ANY return at all on their investment  is specious at best.  Any investment in the Siena is wiped out.

REreno has covered recent Siena action, and has a pretty spicy archive of documents.  Downtown Makeover has a good comment string going on, too.

Update 17 November – The Bankruptcy Court judge finally issued his Order approving the Sale of the Siena to Grand Siena LLC this afternoon.  Both the buyer and the seller had “out” clauses if the Order was not entered by today. The Order is a very interesting document,and contains information never before made public.  There is a letter from Barney to the Gaming Commission that is CC’d to 8 parties, 3 of which are among the 5 member partnership buying the Siena.  I’m guessing the other 2 are on the CC list, so I’ll do some digging to find out who they are.  The other interesting attachment is the list of personal property included in the $3.M sale, which lists a depreciated value of about $12M.  Did the Siena really sell for a third of the value of the furniture, kitchen equipment, slots and 15,000 16 ounce plastic logo beer cups?  The new owners could have a huge garage sale, implode the Siena when they are done, end up with a prime Truckee Riverfront property, and still clear $5M or so.  Read the Order HERE.

During an aside at the auction hearing, each bidder estimated what percentage of their bids were the physical property and personal property.  2 of the bidders were at 75/25, which would value the Siena at $48M if the depreciated personal property list is accurate.  The third bidder was at 70/30 (I believe this was Grand Siena LLC) would would translate to a value of $40M.  Did they just steal the Siena?

My gut is that the Siena package was worth about $13.5M.  The needlessly rapid auction sale excluded a lot of entities who may have been interested in the property (if the need to sell the Siena was so dire, why did it take over a week to enter the Order?).  The Order allowing the auction to take place was only entered the day before the auction, and I personally know of one qualified bidder who dropped out because of uncertainty on what the terms were actually going to be.  If my estimates of real value are in the ballpark, the RE Reno investors who financed the Siena were hosed out of about $10M in this process.  That would be about 20% of their original investment, but it would have been something.  Why do I sense the Siena saga is going to be with us quite a while longer?