Marriott Colorado Facing Bank Owned Property Listings

by Peter Vernon on States

Marriott-branded real properties located in Fort Collins, Colorado are facing bank owned property listings. Last August, notice of demand for sale and election were filed in Larimar County on the properties which are part of the portfolio of Los Angeles, California-based Integrated Capital LLC.

The filing of notice is actually the first stage in the arduous and long process of repossession. It also means that the homeowner has defaulted on his mortgage payments. According to records, Integrated Capital bought three Marriott properties, The Residence Inn, The Courtyard and Marriott Hotel in September of 2006 from a group of investors, led by Everitt Cos. And Sitzman-Mitchell and Co.

At the time the properties were sold, Everitt President David Everitt said that the Marriott performed well as an investment. He said that they supported the cap rates imposed on hotels, adding that it was the ideal time to sell according to the business cycle.

The Marriott properties were acquired by Integrated Capital, which was established in 2004. Its goal is mainly to buy and manage hotels across the country.

When Integrated Capital bought the Marriott properties in Fort Collins, it already acquired Residence Inn based in Maryland and Doubletree Hotels based in California. According to court filings, the Marriott properties are at risk of going into bank owned property listings because of the $32 million due on notes that has the original balance amounting to about $32.5 million.

According to industry experts, the Marriott notice of demand for sale is the largest filing so far in the nation. Integrated Capital has until December 15 to file its intention to cure and December 29 for a cure deadline. Sale date for the Marriott-branded properties is currently set on December 30.

Meanwhile, the original note holder pinpointed in the filing is Barclays Capital Real Estate Inc. In 2007, the notes were assigned to Lasalle Bank NA, which in 2008, became a part of the Bank of America and Comm 2006-C8 Commercial Mortgage Pass-Through.

According to industry experts, the number of commercial properties on foreclosures does not reflect actual defaults. They added that many commercial loans that are facing bank owned property listings have been performing poorly for some time now.