Capri Capital Takes W Atlanta Hotel

ATLANTA-In yet another indication that the condominium and hotel businesses are in a serious slump in Atlanta, on Tuesday of this week, the Chicago-based Capri Capital Partners, LLC reached an agreement with Atlanta-based Barry Real Estate Companies on the conversion of Capri’s mezzanine loan into an equity interest in the W Atlanta Hotel & Residences in downtown Atlanta.

Under the new agreement, Capri assumes the primary ownership interest in the 28-story mixed-use hotel and condo property, which opened in January of 2009. Although Capri spokesman, Trish Hoffman, says that Barry Real Estate will “continue to participate in the economics of the hotel,” she did not explain what that would mean.

Capri gave Barry Real Estate Companies a $43.5 million mezzanine loan to develop the $155 million project, says Hoffman. The Capri loan was in addition to the financing the company received from Atlanta-based Silverton Bank, which was taken over by the FDIC last May.