FORT WORTH-The Fort Worth Star-Telegram reports that the 429-room Sheraton Hotel and Spa in the CBD has sold to 1701 Commerce Acquisition LLC, an investor group of Presidio Cos. in Sacramento, CA. The buyer paid $49 million for the property, which had been at the center of a loan default, bankruptcy, court fights and a potential foreclosure.
Ironically enough, Presidio acquired the property at 1701 Commerce in 2006 and redeveloped it under the Sheraton flag. But Presido defaulted on $56 million in loans, and in 2011, project lenders Dougherty Funding in Minneapolis and Vestin Originations in Las Vegas ended up in court to determine ownership. In late 2011, Presidio deeded the property to Vestin in lieu of foreclosure, and Vestin filed for bankruptcy to avoid foreclosure.
Though Doughtery won approval to foreclose on the hotel, the lender offered extensions to Presido to find financing to close the deal. In the meantime, Prism Hotels & Resorts, which had been under contract at the end of 2012 to buy the hotel for $55 million, walked away from the deal.
The article notes that the hotel will continue operating under the Sheraton flag, though Interstate Hotels and Resorts is managing the property. The new owners say the property will undergo a multimillion-dollar renovation to improve the hotel’s entrance and lobby, meeting rooms and guest rooms.
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