WASHINGTON, DC-The foreclosure auction scheduled for DC’s St.Regis hotel did not occur on Friday. As GlobeSt.comearlier reported, there were rumors that thelender, Barclays Capital, would not begin foreclosureproceedings on the hotel, despite news reports to the contrary.Barclays Capital declined to comment to GlobeSt.com for thisarticle.

|

A source confirms for GlobeSt.com that the auction did not takeplace--and that the reason was due to paperwork or similar issues.In other words, it was not pulled because the lender and borrowerwere negotiating a workout to forestall the foreclosure, asreported in the Irish Times.

|

“No one is going to argue that the inevitable [foreclosureauction] won’t occur,” the source says. “It is just a matter oftime.” In this particular case, the borrower acquired the propertyat the height of the market and is too encumbered with debt to makeit worthwhile for the lender to negotiate a deal. Claret Capital, aprivate equity firm in Ireland, purchased the hotel at the heightof the market in 2007 for $170 million. There is a $101.6-millionnote on the property.

|

Want to continue reading?
Become a Free ALM Digital Reader.

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications
NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.