Loan on Park Hyatt Aviara Returned to Special ServicingMonday, April 22, 2013
A $186.5 million loan backing the Park Hyatt Aviara in Carlsbad has been placed back in special servicing because of a payment default by the borrower.
According to data from Fitch Ratings and the financial information provider Trepp LLC, the borrower is Aviara Resort Associates SPE LLC, sponsored by Broadreach Capital Partners of Palo Alto and St. Louis-based Maritz, Wolff & Co., which has an office in Los Angeles.
The property’s loan was modified in 2011 by the special servicer, CW Capital Asset Management LLC, and returned at the time to its master servicer, Wells Fargo. It is now back with the special servicer.
The 329-room property, formerly the Four Seasons Aviara Resort, with an 18-hole golf course, was built in 1997 and renovated in 2006. It was switched to Hyatt Hotels Corp.’s Park Hyatt luxury brand in June 2010, following a management dispute between the owners and prior operators.
According to Trepp, the 2011 modification allowed for deferred interest payments and extended the loan maturity date to February 2017, and also called for additional required financial reserves.
Trepp reported that the property continues to produce negative net operating income, based on the latest financial information submitted by borrowers. Occupancy as of Sept. 30 was 60 percent, its average daily rate in September was $250, and its revenue per available room was $151.
— SDBJ Staff Report