Overview

William Meinhold of Swoboda Hospitality Specialists was retained as Listing Agent to negotiate a sale of the Clarion Suites at Yuma, Arizona on a short sale. The property is a 164 two room suites property. The balance on the existing note was $11,600,000.00.

Challenges

The property sold in 2007 for $14,500,000.00 and had a underlying note with the remaining balance being $11,600,000.00. The revenue on the property had dropped from $4,000,000.00+ to under $2,500,000.00 and had become a non performing property. The lender was willing to settle the note for $5,000,000.00 but required a hard money deposit of $250,000.00 up front.

Goals

Find a Buyer that was willing to execute a non contingency Purchase Agreement, paying all cash at close of escrow with a non refundable $250,000.00 deposit.

Results

Secured a Buyer that was knowledgeable of the Property and understood the situation that was willing to execute the required Purchase Agreement and place the non refundable deposit into escrow. This Buyer closed escrow within the required 45 day period, thus enabling us to liquidate the asset under the terms and conditions required by the Lender. The Lender received $5,000,000.00 for the underlying note which allowed the Tenant in Common entity to distribute the balance to it’s partners.