67.4 F
San Diego
Sunday, Jul 21, 2024
-Advertisement-

Loan Delinquency Forces Park Hyatt Aviara Resort Back into Special Servicing

Ownership of the Park Hyatt Aviara Resort in Carlsbad has been transferred to a special-servicing entity for at least the second time in recent years, due to loan delinquency issues encountered by its owners. The property at 7100 Aviara Resort Drive remains open for business.

According to public filings on June 2, the deed on the property was transferred to an entity listed as 7100 Four Seasons Holdings LLC. The entity is affiliated with CWCCapital Asset Management, a New York-based provider of services related to delinquent loans.

The deed transfer was in lieu of a foreclosure on a bank loan originally taken out by former owner Aviara Resort Associates SPE LLC and assumed by the most recent owners, Broadreach Capital Partners of Palo Alto and Maritz, Wolff & Co. of Los Angeles.

The information is included in data from CoStar Group and Real Capital Analytics, along with filings with the county recorder. At the time of the deed transfer, the prior owners’ principal indebtedness on the loan was $186.5 million.

General procedure calls for a special-servicing firm to line up another buyer for a property, or to assist a prior owner in reacquiring ownership. The Carlsbad resort’s operators were not immediately available for comment.

The same situation occurred in 2010, when a prior ownership entity faced imminent default on the loan financed through Wachovia (currently Wells Fargo) to acquire the property. CWCCapital took ownership of the property before transferring it to the joint venture consisting of the two investment firms.

The 329-room hotel and golf resort property was built in 1997 and has since undergone significant renovations. It was originally known as Four Seasons Aviara but switched to Hyatt Hotels’ Park Hyatt brand in June 2010.

Earlier this year, Park Hyatt Aviara was among four San Diego County hotels included in the annual AAA listing of the nation’s Five Diamond hospitality properties.

Alan Reay, president of Irvine-based brokerage and research firm Atlas Hospitality Group, said the property’s situation likely stems more from issues related to debt being carried by the former owners, rather than hotel market conditions. The owners had been granted a loan modification by the special servicer in 2012 that included a five-year maturity extension, but were still apparently unable to make payments that came due earlier this year.

Reay said Park Hyatt Aviara, for the trailing 12 months ending April 2016, was running at an average occupancy rate of approximately 67 percent, at an average daily room rate of $242. In the current market, local hotels at that amenity level are generally running at closer to 70 percent occupancy and a $300 room rate.

-Advertisement-

Featured Articles

-Advertisement-
-Advertisement-

Related Articles

-Advertisement-
-Advertisement-
-Advertisement-