Sawgrass Mills Owner Loses Foreclosure Battle

FORT LAUDERDALE, FL-In another example of the hotel market being affected by the economic downturn, the Crowne Plaza Hotel at Sawgrass Mills, located near the popular Sawgrass Mills Mall west of Fort Lauderdale, is scheduled to be auctioned off on May 6th after the owner of the property lost a foreclosure lawsuit to a commercial mortgage-backed securities fund.

The judgment against GFII DVI Cardel Sawgrass, the owner of the Crowne Plaza, is $21.5 million, a figure based on an $18.6 million mortgage plus fees.

The Crowne Plaza brand is a good one, says Scott Smith, senior vice president at PKF Consulting in Atlanta. The foreclosure was probably a function of market conditions in the Sawgrass Mills area, he says, namely the addition of many new hotel rooms in 2007 and 2008, especially full service properties.