By Kristena Hansen, courtesy of the Phoenix Business Journal
The Hilton Garden Inn in central Phoenix, which largely serves travelers passing through Phoenix Sky Harbor International Airport, has been placed into foreclosure for falling behind on its roughly $25 million loan.
Records in the Maricopa County Recorder’s Office show the lender started the foreclosure process Oct. 12 and the hotel, which is near 40th and Van Buren streets, is set to go to auction Jan. 15.
In addition, $204,023 still is owed in property taxes for this year, according to records in the Maricopa County Treasurer’s Office.
The loan in default was initially issued to Gateway Hotel LLC in 2008 when the hotel property was purchased, records show.
According to the Arizona Corporation Commission, Gateway Hotel LLC was formed in 2007 by Douglas Edgelow, who is listed as manager, and members Windsor Gateway LLC and Century Hospitality Co. LLC.
Edgelow is also the owner of Phoenix-based Equus Development Corp., a home and condominium developer, which also controls the aforementioned Windsor Gateway entity. Century Hospitality is controlled by member Kenneth Edwards, who has a 10 percent interest in the hotel property, Edgelow said.
The foreclosure filing is the result of failed negotiations with the lender over the past several years, Edgelow said.
“There’s a lot of people that are the same as me who have had their properties taken away in same exact way, the same exact basis,” he said. “It’s terrible.”
Gateway Hotel initially obtained the loan from Silverton Bank NA in Atlanta to purchase the property (which included an office building at the time) and then erect the 192-room Hilton.
