The W Atlanta-Downtown hotel and condos project went back to its lender this week. The Atlanta Journal-Constitution reported
that the hotel tower, which was developed by Barry Real Estate Cos. was foreclosed upon by the senior lender, a joint venture between the FDIC and Square Mile Capital Management. Barry Real Estate had ceded its ownership stake to Capri Capital Partners, the hotel's mezzanine lender, in order to avoid foreclosure. The original lead lender, Silverton Bank, had failed in May 2009 and was taken over by the FDIC. In May, the FDIC auctioned the servicing rights to the loan to Square Mile and so both are part of the latest move. The hotel, which opened last year is doing brisk business. The hotel's general manager reports that several conventions have filled the hotel to capacity for 12 nights in October. This month the hotel is offering a Breast Cancer Awareness month package
that includes 2 ThinksPink cocktail, free valet parking and a $10 donation to the Young Survival Coalition with rates starting at $219.
Other W hotels have had similar problems. The W Boston has been fighting foreclosure
for months. The W Union Square in New York City was in foreclosure for months but was recently purchased
. The W San Diego was foreclosed on over the summer and is now owned by its lender.