10 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.Email This Post To a Friend.
Hotel Burnham Nearing Foreclosure – Restructuring Discussions Begin
December 10, 2009
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