In addition, says Martin G. Alston, Capri Capital Partners' chief administrative officer, "We retained Jones Lang LaSalle to assist in the transition from the Barry Real Estate Co. to Capri." In April, Capri, as manager of a co-mingled fund of institutional investors, assumed primary ownership of the 28-story, mixed-use hotel and condo property when they converted their mezzanine loan into an equity interest. The Barry Real Estate Companies developed the W Atlanta Hotel & Residences.

"We are doing an initial assessment of (the W), including the 75 condominiums associated with it," says Epps. "To date, only one of the condominiums has sold, but we will be working with the current brokerage firm, Atlanta Fine Homes, to get those condos back on track."

"The problem with selling the condominiums," says Epps, is that Fannie Mae views any condominium which shares services with a hotel as a condo-hotel, but these are not condo-hotels, because the units do not go into a rental pool, although they do share a pool and fitness center with the hotel,he says. Once this issue is clarified, that will clear the way for financing of the condominiums, says Epps.