The Ritz-Carlton Rancho Mirage has been sold in a trustee's sale, allowing the project to move forward.

The auction of the property took place on July 8, Rancho Mirage officials and the hotel's new joint venture partners confirmed Tuesday.

Acquiring the property was Rancho California Investments, LLC, an affiliate of the Gencom Group, an owner and developers of luxury-branded hotel properties in the country that is linked to the original transformation of The Lodge of Rancho Mirage, and Miami-based Magna RE, a private business investment firm.

Terms of the “credit bid” that clinched the sale and cleared the property of mechanic's liens and outstanding debt was not disclosed in the $312 million foreclosure action.

Rancho California Investments, the holder of the note, initiated the foreclosure to get the property out of limbo.

The project by GENLB-Rancho LLC, a subsidiary of Gencom, stalled when Lehman Brothers Holding Inc. declared bankruptcy.

Curt Watts, director of economic development for the city of Rancho Mirage, said the credit bid by Rancho California Investments now means that the lender owns the project. It also means the project can move forward.

Magna RE is the driving force in the equity behind the joint venture.

“New financing can now be put into place,'' Watts said, before he headed into a briefing to learn about construction, credit and project staging.

Rancho Investments and Magna RE noted in a statement that construction plans to finish the 244-room hotel property would be announced within the next several months. Typically, it can take 60 to 90 days to ramp up for construction and close on loans to move forward.

“This acquisition provides a unique opportunity for us to continue our growth in the luxury sector of the hospitality market,'' said Guillermo Coldesina, partner of Magna RE.

Karim Alibhai, principal of Gencom, said the joint partnership is well-capitalized, and has extensive experience in the investment and development arena.

“We are confident that this will be a tremendous opportunity to expand our portfolio of assets” as part of this strategic relationship, Alibhai said.

Dana Hobart, the mayor pro tem of Rancho Mirage and chair of the Palm Springs Desert Resort Community's Convention and Visitors Authority governing group, said this could put the project on schedule for a 2011 opening.

The hotel must open by June to be eligible for transient occupancy rebates and other financial assistance from Rancho Mirage.

It's been a long haul, he said, noting Gencom has been caught between a rock and a hard place with Lehman Brothers.

“They stuck with this project. When 98 percent of any other project in the United States collapsed and failed, they are carrying it through to fruition.”