The Westin Hotel in Fort Lauderdale has been hit with a foreclosure lawsuit, as it struggles to keep up with new hotels closer to the beach. U.S. Bank filed a foreclosure lawsuit on September 23 against PFL VII LLC, the owner of the 293-room hotel at 400 Corporate Drive. The hotel was built in 1986 with 141,391 square feet, including 22,000 square feet of event space. PFL bought it for $40.5 million in 2007 with a $42 million mortgage.
According to Trepp LLC, the mortgage has $41.3 million outstanding. The payments were current as of early September, but the loan was placed into special servicing for imminent default several months ago. The borrower requested payment relief because of negative cash flows. For the 12 months ended March 31, the Weston Fort Lauderdale generated net operating income of $2.8 million on revenue of $13.4 million, but that was not enough to meet its loan payments without extra capital from the owner, according to Trepp. The hotel had an occupancy rate of 74 percent. Increased online competition has hurt the hotel, which has been unable to raise room rates. The situation is expected to worsen as it enters its slower season starting in August.
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Choosing the right attorney can make the difference between whether or not you can keep your home. A well-qualified Miami foreclosure defense attorney will not only help you keep your home, but they will be able to negotiate a loan that has payments you can afford. Miami foreclosure defense attorney Timothy Kingcade has helped many facing foreclosure alleviate their stress by letting them stay in their homes for at least another year, allowing them to re-organize their lives. If you have any questions on the topic of foreclosure please feel free to contact me at (305) 285-9100. You can also find useful consumer information on the Kingcade & Garcia website at www.miamibankruptcy.com.