RCA in the commercial property press:

Hawaii Foreclosure Wave Crashes Over Lehman's Ritz-Carlton

Wall Street Journal reports: On Tuesday, September 07, Lehman Brothers Holdings Inc.’s estate filed for foreclosure on the Ritz-Carlton Kapalua Resort in Hawaii. The hotel property has been in default for over one year on its $255.0 million mortgage and JV owners Gencom Group and Goldman Sach’s Whitehall Street Global Real Estate LP are not expected to fight the proceedings in court. The Ritz-Carlton venture fell into trouble mainly due to the failure of the owners to follow through on a renovation plan, which included converting 107 of the hotel’s units into luxury condominiums.

This foreclosure is but one in a long line of assets that have become troubled or distressed in Hawaii over the past year. The Wall Street Journal quotes Real Capital Analytics’ data on Hawaii’s beleaguered hotel sector: “Real Capital Analytics counts roughly $2.1 billion in troubled mortgages attached to 11 properties in the state that have defaulted since the start of the recession in 2008.”

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Posted by: Nina Turner

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