The foreclosure is one step toward a deep restructuring aimed at quashing the buyer lawsuits and liens.
One year after a palatial new Hyatt Regency Clearwater Beach (Fla.) Resort and Spa debuted as an emblem of Clearwater Beach’s rebirth, its developers are facing foreclosure on their $141 million mortgage, reports the St. Petersburg Times.
A centerpiece of the city’s $30 million BeachWalk promenade, the 17-story Hyatt Regency Clearwater Beach Resort and Spa has become a hit among vacationers aiming for one of the resort’s 250 condo-hotel suites on the Gulf of Mexico waterfront. But many prospective buyers of the condo-hotel rooms, furious over construction delays, have sued to void their contracts. Of the resort’s 250 condo-hotel rooms, only eight have sold.
Dougherty Funding, the resort’s lead lender, began the foreclosure process last month in Pinellas-Pasco Circuit Court. A mortgage from the Delaware firm paid for most of the resort’s development, including $110 million in construction.
The resort’s owner is Crystal Beach Capital, an affiliate of NJR Development. NJR president Neil Rauenhorst said the foreclosure is one step toward a deep restructuring aimed at quashing the buyer lawsuits and liens. Rauenhorst said the lenders want Crystal Beach Capital to remain at the helm of the resort.
Within three months, Rauenhorst said, the 1-million-square-foot resort will relaunch a campaign to sell the hundreds of remaining condo-hotel rooms. Owners can stay for up to 60 days a year and earn a cut of the suite’s rental rate while they’re away.
Tell Us What You Think!
You must be logged in to post a comment.