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$56.1-Mil Foreclosure Slams Beechwood Hotel, Golf Course

FT. WORTH-The region's largest foreclosure in nearly a decade is a bitter reality. Lender CoServ Realty, whose parent just filed bankruptcy on telephone and cable operations, takes back a Westin hotel and championship golf course for $56.1 million in debts.

By Connie Gore | Updated on December 04, 2001

FT. WORTH-The lender for the 286-room Westin Beechwood and Greg Norman-designed golf course Tuesday foreclosed on the assets at a public sale in the Denton County Courthouse. CoServ Realty Holdings LP of Denton isn’t talking about its intentions for the properties although both are poised to remain open.

The irony is CoServ Realty’s parent late last week filed bankruptcy petitions for its telephone and cable operations. CoServ Realty took control of the Beechwood holdings for the debt owed: $11.4 million against the 210-acre Creeks at Beechwood golf course and $44.7 million for the hotel and 15 surrounding acres. Officials say there were no other bidders. The transaction reportedly was a non-cash take-back totaling considerably more than the properties’ values in today’s hospitality market. It was the largest foreclosure to come down the pike in nearly a decade. CoServ held a cross-collateralization loan of $10 million for the golf course and $43 million for the hotel.

David R. Farmer, Beechwood Co.’s president and CFO, tells GlobeSt.com that 11th hour talks were shelved to stave the foreclosure via bankruptcy filings for the two single-asset LPs. “It was not the best path for us to take,” he explains. “It was very unfortunate and we wish it would not have happened. A lot of blood, sweat and tears went into the development of those assets.”

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