Another local hotel is heading to the auction block.
The Candlewood Suites Richmond-South is scheduled for a November foreclosure auction, just weeks after its lender successfully fought to have an emergency receiver take over operations of the property.
The three-story, 104-room hotel at 4301 Commerce Road is owned by Tramz Virginia, an entity tied to New Jersey-based hotel operator Tramz Hotel Group. The company defaulted in August on a $5.3 million loan. That caused the entirety of the loan to come due, according to Richmond Circuit Court records.
The hotel sits on 1.5 acres within shouting distance of a Hampton Inn and Holiday Inn and next door to Philip Morris’s massive cigarette production facility. The property was most recently assessed at $4.73 million, according to city records.
An auction is set for 11:30 a.m. Nov. 15 on the steps of the Richmond Circuit Court. Richmond law firm Kepley Broscious & Biggs is handling the auction.
Tramz owns 20 hotels in eight states, according to its website. The Candlewood property is its only hotel in the Richmond market. It owns a Fairfield Inn in Virginia Beach.
A message left for Tramz chief executive Tarrunumn Murad was not returned by press time.
The loan holder on the Candlewood hotel is U.S. Bank. The original lender was Lehman Bros. in 2006. U.S. Bank hired Hunton & Williams and attorney Tara Elgie to gain court approval for a receiver to manage the hotel after the default. Richmond Circuit Court granted approval Sept. 26, according to court records.
Elgie did not return a call for comment by press time.
The appointment of receiver is typical in hotel foreclosure cases. Receivers are brought in to operate the properties and to control the revenue being generated.
The Candlewood property is at least the third local hotel this year to be threatened with foreclosure.
The Hyatt Place at 4401 South Laburnum Ave.
The Hyatt Place at 4401 S. Laburnum Ave. went back to its lender through foreclosure in May. It was acquired in July by Richmond-based Shamin Hotels.
In February, a special servicer was moving the Richmond Marriott West on Dominion Boulevard in Glen Allen toward auction after its owner fell behind on payments. Now, the lender on and the owner of that 242-room hotel are fighting in federal court over whether a receiver should be appointed to take control of the 12-year-old operation.
Some hotels took a beating amid the recession. Those that have gone into foreclosure in the past couple of years typically have had a loan that was taken out as the economic boom peaked.
The property at 700 E. Main St.
Values of some hotel properties dropped during the recession, as did room revenue, leaving many properties under water.
But it hasn’t been all bad news for the local hotel industry.
Richmond-based Apple REIT has begun construction on $30 million, six-story, 210-room hotel at Cary and 14th streets.
And Shamin Hotels last week bought an 18-story office building downtown at 700 E. Main St., where it plans two Hilton-branded hotels that will total 244 rooms.
There are 215 hotels in the Richmond metro market, according to data released this year by Smith Travel Research.
Another local hotel is heading to the auction block.
The Candlewood Suites Richmond-South is scheduled for a November foreclosure auction, just weeks after its lender successfully fought to have an emergency receiver take over operations of the property.
The three-story, 104-room hotel at 4301 Commerce Road is owned by Tramz Virginia, an entity tied to New Jersey-based hotel operator Tramz Hotel Group. The company defaulted in August on a $5.3 million loan. That caused the entirety of the loan to come due, according to Richmond Circuit Court records.
The hotel sits on 1.5 acres within shouting distance of a Hampton Inn and Holiday Inn and next door to Philip Morris’s massive cigarette production facility. The property was most recently assessed at $4.73 million, according to city records.
An auction is set for 11:30 a.m. Nov. 15 on the steps of the Richmond Circuit Court. Richmond law firm Kepley Broscious & Biggs is handling the auction.
Tramz owns 20 hotels in eight states, according to its website. The Candlewood property is its only hotel in the Richmond market. It owns a Fairfield Inn in Virginia Beach.
A message left for Tramz chief executive Tarrunumn Murad was not returned by press time.
The loan holder on the Candlewood hotel is U.S. Bank. The original lender was Lehman Bros. in 2006. U.S. Bank hired Hunton & Williams and attorney Tara Elgie to gain court approval for a receiver to manage the hotel after the default. Richmond Circuit Court granted approval Sept. 26, according to court records.
Elgie did not return a call for comment by press time.
The appointment of receiver is typical in hotel foreclosure cases. Receivers are brought in to operate the properties and to control the revenue being generated.
The Candlewood property is at least the third local hotel this year to be threatened with foreclosure.
The Hyatt Place at 4401 South Laburnum Ave.
The Hyatt Place at 4401 S. Laburnum Ave. went back to its lender through foreclosure in May. It was acquired in July by Richmond-based Shamin Hotels.
In February, a special servicer was moving the Richmond Marriott West on Dominion Boulevard in Glen Allen toward auction after its owner fell behind on payments. Now, the lender on and the owner of that 242-room hotel are fighting in federal court over whether a receiver should be appointed to take control of the 12-year-old operation.
Some hotels took a beating amid the recession. Those that have gone into foreclosure in the past couple of years typically have had a loan that was taken out as the economic boom peaked.
The property at 700 E. Main St.
Values of some hotel properties dropped during the recession, as did room revenue, leaving many properties under water.
But it hasn’t been all bad news for the local hotel industry.
Richmond-based Apple REIT has begun construction on $30 million, six-story, 210-room hotel at Cary and 14th streets.
And Shamin Hotels last week bought an 18-story office building downtown at 700 E. Main St., where it plans two Hilton-branded hotels that will total 244 rooms.
There are 215 hotels in the Richmond metro market, according to data released this year by Smith Travel Research.