The W Atlanta-Downtown hotel and condos have been taken back by its senior lender, but will remain open for business, the Atlanta Journal-Constitution reports.
The downtown hotel has been embroiled in a protracted ownership dispute, which has included the departure of the original developer from the ownership structure, the failure of original lender Silverton Bank and more than two dozen lenders jockeying for repayment.
The tower was developed by Barry Real Estate Cos., which avoided foreclosure in April by ceding its ownership stake to Capri Capital Partners, the hotel's mezzanine lender, though Barry was still to play a limited role in the property. This week, Capri was foreclosed upon by the senior lender, a joint venture between the FDIC and Square Mile Capital Management. The original lead lender, Silverton Bank, failed in May 2009 and was taken over by the FDIC.
Hotel officials say that the latest move will give the hotel financial stability, and stress that the ownership complications have not affected the hotel's operations. In fact, several conventions have filled the hotel to capacity for 12 nights in October, making it one the best periods since the hotel opened last year.
