Hotel Burnham Nearing Foreclosure – Restructuring Discussions Begin

December 10, 2009

Daily Real Estate Updates

sudler-sothebys-logo10 December 2009 ? The Hotel Burnham, located at 1 W. Washington in the Loop, is facing a foreclosure suit by Bank of America. Developers Dan McCaffery and E. Barry Mansur, who converted the office building to a hotel in the late 1990’s, were included in the suit. The owners stated that they deliberately stopped making payments in July, sending the loan into default and thereby allowing them to open restructuring discussions. The loan was combined with other real estate loans and sold to investors as a commercial mortgage-backed security in 2007. Borrowers typically cannot seek a loan modification until the loan is close to default, at which time a special servicer is assigned to handle discussions. The Hotel Burnham loan was placed with CW Capital Asset Management in September of this year. The Burnham, like many other hotels, increased its debt load when credit was readily available, and is now feeling the impact of lower room rates and occupancy levels caused by the steep drop in business and leisure travel.

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About Stacy Braack

Stacy is a seasoned real estate professional with a broad range of hands-on experience including first time buyers, investors, luxury homes, and distressed properties. While this may appear to be a scattered set of expertise, she believes the experience provides maximum effectiveness in today’s chaotic market, which requires extensive knowledge of all aspects of the industry. Stacy’s educational background includes a BS in Industrial Engineering from Stanford University and an MBA in Marketing and Finance from the Kellogg Graduate School of Management. Professionally, Stacy has done everything from operations consulting to city government before she found her passion in real estate almost eleven years ago. It is this passion that drives the most benefit to her buyers and sellers. She is fully committed to your goals – both financial and personal. Her clients describe her as extremely direct, honest, and responsive, and they repeatedly trust her to handle one of the biggest events in their lives. For buyers she works non-stop to find you both a home you will love to live in and one that is a smart investment. Many of her 2008 buyers have realized instant equity in their new homes through ‘pit bull’ negotiation skills. While the market has been tough for sellers, her listings have sold at a rate above that of the market. Extensive, constant, and extremely high-quality marketing, including both print and internet mediums, support every listing, from investment studios to luxury penthouses. She believes that your goals are her priority and her full-time job. She has built her business on referrals from satisfied clients, and she would love to add you to that list. You can contact her at 773-405-4431 or stacy.braack@sothebysrealty.com

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