Wednesday, February 13, 2008

The latest on Hotel 71

I made a promise that I would blog about Hotel 71 when I saw stories about it, and I am a man of my word.

The latest is that a JV of Canyon Capital and New York-based investment fund Brickman have obtained a controlling interest in the property by buying a chunk of the $100 MM senior loan and then credit bidding that amount at the bankruptcy auction. Nice move. This should wipe out the mezz lender, Oaktree Capital Management LLC (although you never know for sure without public scrutiny).

The JV wants to "reposition" the hotel. We've heard those words before. This is just a property that has never been on my radar, but I like the riverfront location. Looks like we are back to a wait-and-see with where this property goes.