(This story, in slightly different form, originally appeared in Incisive Media's Daily Business Review.)
MIAMI-A New York real estate investor and hotel operator has purchased the mortgage note on the DoubleTree Miami Mart Hotel and Convention Center near Miami International Airport. Great Neck, NY-based United Capital Corp. acquired the note in mid-July.
The mortgage has an outstanding balance of nearly $60 million and is secured by the 12-story hotel with 334 rooms, 166,000 square feet of convention space and 24,000 square feet of retail space. Anthony Miceli, United Capital chief financial officer, declined to say how much the publicly traded company paid for the note.
The note is in default and scheduled to be sold at a foreclosure auction July 30. United Capital expects to take title to the property at the public sale and operate the hotel.
Miceli didn't know whether it would continue operating under the DoubleTree flag. United Capital plans to invest $12 million renovating the property.
The seller was lender Gramercy Investment Trust. Gramercy made the loan to SF Hotels, led by Georgi and Lourdes Zaczac of Miami, in March 2007. After the loan went into default, Gramercy filed a foreclosure lawsuit against SF Hotels in early 2008. A foreclosure sale was scheduled for June 29 but was postponed as Gramercy looked for a note buyer.
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