There are special circumstances associated with the Park Hyatt Aviara Resort loan, but I never would have believed I'd see the day where a loan losing over $1mm a month after debt service (about 1/2% of the total balance) would get extended for 5 years a full year before it's maturity date, but here we are.
After a long dispute and subsequent arbitration with Four Seasons, the operator, Broadreach Capital (the owners) were able to replace them with Hyatt. Hyatt intends to re-brand it as a Park Hyatt (looks like they've already done it). The change in management contributed substantially to the servicer's decision according to the Bloomberg story on it. It also notes that all the payments are current now and the default (September '10) was simply a strategic move to enter the negotiations.
The loan is Four Seasons Aviara Resort - Carlsbad, CA in WBCMT 2007-C30. CW Capital is the Special. 329 keys, 18 hole Arnold Palmer course, renovated in 2006. It's now scheduled to mature in February 2017.
Posts
No comments:
Post a Comment