Bank Selling Waterfront Hotel, Condo Project

Previously known as the Lexington Plaza Waterfront Hotel, the full-service hotel property sits along the waterfront in the heart of downtown Stockton's revitalized entertainment district, walking distance from Stockton Arena, Weber Point Events Center and Banner Island Ballpark. The development includes 179 guestrooms with plasma televisions, 42 condominium units, a restaurant and bar, a pool and whirlpool, a fitness center, and 12,000 square feet of meeting space. None of the condos have been sold.

The property has been in receivership for the past year. Atlas Hospitality received the exclusive listing after no one bid for the property at First Bank's foreclosure auction at the beginning of the month. The minimum bid was $12 million. No one bid because they would have had to put up the amount in cash on the courthouse steps and then still would have been responsible for millions of dollars in unpaid taxes and liens against the property.

Instead, First Bank met the minimum with a credit bid, paid off the liens and back taxes and hired Atlas to sell the property so it can get back at least some of its now plus-$40-million position in the property. A call for offers is expected on or about mid-October.

"Now prospective buyers have time to inspect the property, which is now clear of liens," Atlas Hospitality president Alan Reay tells GlobeSt.com. "Subject the strength of the buyer, there is the potential for financing (from the seller)."