IBJNews

Lender seeking to foreclose on northwest-side hotel

Back to TopCommentsE-mailPrintBookmark and Share

A creditor claiming it is owed $6.4 million by the operator of a northwest-side hotel is attempting to foreclose on the property.

Colfin NW Funding LLC filed suit Nov. 30 against Park C Limited Partnership, the borrower that operates the Courtyard By Marriott Hotel Northwest under Indianapolis-based Schahet Hotels Inc. Schahet operates several other hotels in the metropolitan area.  

The lender is asking a Marion Superior Court judge to foreclose on the Courtyard By Marriott property and appoint New York-based Gemini Real Estate Advisors LLC as receiver to sell the hotel’s assets.

The three-story Courtyard By Marriott Northwest has 87 rooms and three suites.

The foreclosure filing follows two letters from Colfin dated May 21 and June 2, in which it demanded payment on a note executed in December 2007.

“The borrower failed to pay the creditor upon demand,” the lawsuit said. “As a result of the defaults and per the terms of the demand letter, the creditor declared the entire amount of the note to be due and payable in full by the borrower.”

Colfin’s $6.4 million judgment request includes $5.8 million in principal and $452,734 in interest charges, as well as various other fees.

C. Daniel Motsinger, an attorney at Indianapolis-based Krieg DeVault LLP who is representing Colfin, declined to comment on the case.

Elliott Levin of local law firm Rubin & Levin PC, who is representing Park C Limited Partnership, did not return phone calls. Neither did Greg Schahet, chairman of Schahet Hotels.

Tim Worthington, a 35-year industry veteran who is president of locally based Platinum Hotel Solutions, said Schahet Hotels has a reputation as a “good” operator.

“All I know is the northwest side of town is pretty tough. I don’t know if it’s too many hotels there or what,” he said. “It’s not just them. Everybody is having trouble up there.”

Suburban hotels across the Indianapolis area have been hit particularly hard by the economy, with occupany rates well below 60 percent in most submarkets. 

In July, it was announced a Holiday Inn along Interstate 69 just north of 96th Street would go up for auction. Minneapolis-based hotel chain AmericInn purchased the hotel, giving the company its first Indiana location.

Officials for locally based Dora Brothers Hospitality Corp., which owned the 78-room hotel, sold the property after it could not secure financing from a lender to make needed improvements.

In October, two Baymont Inn Hotels, one in Greenwood, the other in Plainfield, were set to be sold by auction after the creditor took control of the properties through foreclosure.

And, late last year, foreclosure proceedings started on a Knights Inn near Interstate 465 and State Road 37 on the city’s south side and resulted in the sale of the property.

Schahet Hotels operates 10 hotels—seven in Indianapolis, one in Carmel and two in Schenectady, N.Y.

Besides the Courtyard By Marriott Northwest, its local operations include four Hampton Inns located downtown, near Indianapolis International Airport, on West 73rd Street and on North Meridian Street in Carmel.

The company also operates the Holiday Inn Express next to the Courtyard By Marriott Northwest on Woodland Drive and the nearby Residence Inn By Marriott Northwest on Digital Way.

ADVERTISEMENT

Post a comment to this story

COMMENTS POLICY
We reserve the right to remove any post that we feel is obscene, profane, vulgar, racist, sexually explicit, abusive, or hateful.
 
You are legally responsible for what you post and your anonymity is not guaranteed.
 
Posts that insult, defame, threaten, harass or abuse other readers or people mentioned in IBJ editorial content are also subject to removal. Please respect the privacy of individuals and refrain from posting personal information.
 
No solicitations, spamming or advertisements are allowed. Readers may post links to other informational websites that are relevant to the topic at hand, but please do not link to objectionable material.
 
We may remove messages that are unrelated to the topic, encourage illegal activity, use all capital letters or are unreadable.
 

Messages that are flagged by readers as objectionable will be reviewed and may or may not be removed. Please do not flag a post simply because you disagree with it.

Sponsored by
ADVERTISEMENT

facebook - twitter on Facebook & Twitter

Follow on TwitterFollow IBJ on Facebook:
Follow on TwitterFollow IBJ's Tweets on these topics:
 
Subscribe to IBJ
  1. So much for Eric Holder's conversation about race. If white people have got something to say, they get sued over it. Bottom line: white people have un-freer speech than others as a consequence of the misnamed "Civil rights laws."

  2. I agree, having seen three shows, that I was less than wowed. Disappointing!!

  3. Start drilling, start fracking, and start using our own energy. Other states have enriched their citizens and nearly elminated unemployment by using these resources that are on private land. If you are against the 'low prices' of discount stores, the best way to allow shoppers more choice is to empower them with better earnings. NOT through manipulated gov mandated min wage hikes, but better jobs and higher competitive pay. This would be direct result of using our own energy resources, yet Obama knows that Americans who arent dependent of gov welfare are much less likely to vote Dem, so he looks for ways to ensure America's decline and keep its citizens dependent of gov.

  4. Say It Loud, I'm Black and Ashamed: It's too bad that with certain "black" entertainment events, it seems violence and thuggery follows and the collateral damage that it leaves behinds continues to be a strain on the city in terms of people getting hurt, killed or becoming victims of crimes and/or stretching city resources. I remember shopping in the Meadows area years ago until violence and crime ended make most of the business pack you and leave as did with Lafayette Square and Washington Square. Over the past 10 to 12 years, I remember going to the Indiana Black Expo Soul Picnic in Washington Park. Violence, gang fights and homicides ended that. My great grandmother still bears the scares on her leg from when she was trampled by a group of thugs running from gun fire from a rival gang. With hundreds of police offices downtown still multiple shootings, people getting shot downtown during Black Expo. A number of people getting shots or murdered at black clubs around the city like Club Six on the west side, The Industry downtown, Jamal Tinsley's shot out in front of the Conrad, multiple fights and shootings at the skating rinks, shootings at Circle Center Mall and shooting and robberies and car jackings at Lafayette Mall. Shootings and gang violence and the State Fair. I can go on and on and on. Now Broad Ripple. (Shaking head side to side) Say It Loud, I'm Black and I'm Ashamed.

  5. Ballard Administration. Too funny. This is the least fiscally responsive administration I have ever seen. One thing this article failed to mention, is that the Hoosier State line delivers rail cars to the Amtrak Beech Grove maintenance facility for refurbishment. That's an economic development issue. And the jobs there are high-paying. That alone is worth the City's investment.

ADVERTISEMENT