W Downtown Atlanta Hotel & Residences Foreclosure by September 7

W Downtown Atlanta Hotel & Residences atlantaSKYrise.com

The W Downtown Atlanta Hotel & Residences is scheduled to go into foreclosure as early as September 7th according to a Georgia Public Notice filing on August 12th. Since it opened, the W has had it’s fair share of troubles, including a complete absence of condo sales. They sold one penthouse unit upon opening, then nothing. After some time, they “dramatically” reduced their pricing, but even that failed to capture buyers. The condominiums are beautiful and designed to perfection. Perhaps the modern aesthetic doesn’t appeal to Atlanta buyers? In this market, it’s all about price, price, price. Could be we seeing another condo auction sometime in the future? I’ll keep you posted. If you are curious about the foreclosure notice, take a look after the break.

NOTICE OF SALE UNDER POWER
STATE OF GEORGIA, COUNTY OF FULTON
Under and by virtue of the power of sale contained in that certain Leasehold Deed to Secure Debt, Assignment of Leases and Rents and Security Agreement from45 Allen Plaza Development, LLC,a Delaware limited liability company (the “Grantor”) to and in favor of Specialty Finance Group LLC (“SFG”) dated April 10, 2008, filed for record April 11, 2008, and recorded in Deed Book 46597, Page 1, Fulton County, Georgia records, as amended by that certain First Amendment to Leasehold Deed to Secure Debt, Assignment of Leases and Rents and Security Agreement, dated February 24, 2009, filed for record February 25, 2009, and recorded in Deed Book 47633, Page 508, aforesaid records, as assigned by SFG to the Federal Deposit Insurance Corporation (“FDIC”), as Receiver for Silverton Bank, N.A. by that certain Instrument dated May 18, 2010, filed for record June 9, 2010 and recorded in Deed Book 49090, Page 343, aforesaid records, as further transferred and assigned by FDIC to 2010-1 SFG Venture LLC (“SFG Venture”) by that certain instrument dated May 18, 2010, filed for record June 9, 2010 and recorded in Deed Book 49090, Page 365, aforesaid records, as further transferred and assigned by SFG Venture to Downtown Atlanta Hotel LLC (“Holder”) by that certain instrument dated August 3, 2010, and recorded in the public records of Fulton County, Georgia (as amended and assigned, the Leasehold Deed to Secure Debt, Assignment of Leases and Rents and Security Agreement is hereinafter referred to as the “Security Deed”); which Security Deed secures i) that certain Promissory Note – Tranche A , dated April 10, 2008, payable by Grantor to SFG in the original principal sum of EIGHTY-FIVE MILLION AND 00/100 DOLLARS ($85,000,000.00), ii) that certain Promissory Note – Tranche B dated April 10, 2008, payable by Grantor to SFG in the original principal sum of TWELVE MILLION AND NO/100 DOLLARS ($12,000,000.00) (collectively, the “Notes”) and (iii) the obligations of Grantor under that certain Construction Loan Agreement by and between Grantor and SFG dated as of April 10, 2008 (the “Loan Agreement”), all as now held by Holder; there will be sold at public outcry by Holder as attorney-in-fact of Grantor to the highest bidder for cash between the legal hours for sale before the Courthouse door in Fulton County, Georgia, onthe first Tuesday in September, 2010,the following described land, improvements and appurtenances (hereinafter collectively referred to as the “Premises”) to wit:

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10 Comments

  • Kevin, in a foreclosure sale, would the hotel/residences likely be re-branded? Sad to see these suffer. Thought these condos were beautiful, though downtown’s not my scene (and I speak for much of the target audience with that comment).

  • I don’t think so Sara. They have a contract to manage the hotel and condos. I doubt the W brand would pull out. The condos are gorgeous, just maybe too modern for some Atlantan’s and the pricing was way too high to start.

  • I also agree that even though the condos are indeed gorgeous, most of the W’s target market still aren’t too keen on the downtown scene. Hopefully one of these days in the future, we will see a completed Allen Plaza and a dramatic transformation in that part of downtown Atlanta, as Hal Barry is hoping for, and at that point hopefully the downtown W would be more favorable… Not holding my breath on the transformation, but that’s something that I would love to see…

  • Location, location, location.

    I was totally their target audience but opted for a Metropolis resale, where I know exactly what is going to be around me for a good many years.

    I’m sure they’re physically more gorgeous, but what you can walk to, and how you feel when you’re walking there, is everything to me in highrise product.

  • Quoted by Stephen: “I’m sure they’re physically more gorgeous, but what you can walk to, and how you feel when you’re walking there, is everything to me in highrise product.”

    I totally agree!

  • What can you walk to from the W? Drinkshop, BLT, Centennial Olympic Park, Social, Room, Max Lager’s, Barley’s, The Aquarium, World of Coke, Mellow Mushroom, Downtown Hotel District (lots of great restaurants e.g. Il Mulino, Meehan’s, Ray’s in the City), Peasant Bistro, Johnny Rocket’s, Luckie Food Lounge, Cinnabon, Rise Sushi Lounge, Legal Sea Foods. All of these places – and more – are easily within 4 blocks. Not to mention the fact that it’s one block from the Civic Center MARTA station.

  • Sorry I forgot to say that I have walked those areas near the W at all times of the night for the last couple of years and have never ever ever had a problem. As long as you don’t go south through the parking lots and Americasmart no-man’s land things are very well lit and developed. There’s also a good neighborhood of people over there with TWELVE, Centennial House, and the Museum Tower all within a couple of blocks.

  • We toured the W Residence Downtown last week. For the most part, I found the units to be rather uninteresting and occasionally wacky. Clearly, the exterior appearance was significantly more important than usable floor space. Some of the mid sized two bedroom units have extremely narrow entry halls lined with louvered doors!
    Further, there is no club room, the residential lobby is extremely small with no furniture for waiting guest.
    We are the target market for this property and we do love downtown as we live at TWELVE Centennial Park next door. However, pricing is not in the real world despite the recent reduction.
    Square Mile Capital, the new owner, is not taking offers, even cash, at this time.
    It will be interesting to see what comes of this project.