Saturday, October 3, 2009
ATLANTA, GA—Lodgian, Inc. (NYSE Alternext US:LGN), one of the nation’s largest independent hotel owners and operators,reported that it is developing a strategic plan to strengthen the company’s balance sheet and better position the company for the near- and intermediate-term. In conjunction with this plan, the company is conducting an analysis of its operating portfolio. Results of the review to date are as follows:
· The Merrill Lynch Fixed Rate Pool 3, secured by six hotels, is in default. The loan matured on October 1, 2009. The company has engaged in negotiations with the lender regarding extension and modification of the loan, with no resolution to date. Unless some agreement is reached in the near-term, the company intends to return the hotels to the lender in full satisfaction of the debt;
· The company has stopped servicing the debt secured by the Crowne Plaza in Worcester, Mass., and intends to return the hotel to the lender in full satisfaction of the debt; and
· The company continues its cost reduction initiatives.
“We continue to focus on strengthening our balance sheet by extending maturities for certain debt facilities and pursuing options with respect to overleveraged assets,” said Dan Ellis, Lodgian president and chief executive officer.
“Year-to-date, we have extended $71.6 million of the Merrill Lynch mortgage debt that matured on July 1, 2009. We remain committed to reducing administrative and operating costs to improve the operating performance of the company as a whole. Further, we continue our review of the portfolio which may result in additional assets being returned to lenders.”
Merrill Lynch Fixed Rate Pool 3
The Merrill Lynch Fixed Rate Pool 3, with a principal balance of $45.6 million, matured on October 1, 2009.
The company has been in discussions with the lender regarding extension and modification of the loan; however, no agreement has been reached at this time. The loan is now in default and the lender may accelerate repayment of the loan and begin foreclosure proceedings, although it has not yet done so. If no agreement is reached, the company intends to return the hotels to the lender in full satisfaction of the debt.
Crowne Plaza Worcester
On a trailing twelve month basis, the cash flow from the Crowne Plaza in Worcester was not sufficient to service the debt on the property. As a result, the company did not make the required debt service payment on September 11, 2009. The company is now in default on this loan, and the lender may accelerate repayment of the loan.
The hotel is encumbered by a $16.3 million, fixed-rate CMBS mortgage that bears interest at 6.04%. The mortgage matures in February 2011, and is non-recourse to the company. Annual debt service on the mortgage is approximately $1.3 million, while the trailing twelve month NOI for the property was $0.6 million. The company does not expect further negotiation with the special servicer and intends to convey the hotel to the lender in lieu of repayment.
For a complete copy of the company's news release and further information, please contact:
Debi Neary Ethridge, Vice President, Finance & Investor Relations, email@example.com, (404) 365-2719
ORLANDO, FL--Cornerstone at Lake Hart, Ltd. recently sold its 1± acre McDonald's leased outparcel to Nova Lot 4, LLC for $1,133,200 cash. The McDonald's is located in Cornerstone at Lake Hart, Ltd.'s Publix anchored shopping center at Narcoossee Road (Highway 15) and Moss Park Road in Orange County.
NAI Realvest negotiates two new industrial lease contracts totaling 13,740 SF in Poinciana and SE Orlando
ORLANDO, Fla. – NAI Realvest recently negotiated two new lease agreements totaling 13,740 square feet of industrial space at industrial facilities in southeast Orlando and Poinciana in Kissimmee.
At 1719 and 1721 Business Center Lane in the Poinciana CommerCenter (bottom left photo) in Kissimmee, Mudodon Inc. d/b/a Academy of Martial Arts of Kissimmee leased 3,240 square feet for over five years. Small Bay Partners, LLC of Maitland is the landlord.
For more information, contact:
Michael Heidrich, Principal, NAI Realvest, 407-875-9989 firstname.lastname@example.org
Patrick Mahoney, President, NAI Realvest 407-875-9989 email@example.com
Beth Payan or Larry Vershel Communications, 407-644-4142 Lvershelco@aol.com
The upward turn will be slow and tenuous, but it will come. Mid-2010 to early 2011 should mark the arrival of true sustainable recovery and optimism. The local and national economies must return to a growth pattern, particularly employment, if commercial real estate is to substantially rebound. After all, the lifeblood of our industry is the employed workforce.
It really is a question of timing. What some consider the worst two-to-three
quarter stretch in the region’s history may finally be waning.
However, we are well into the full throws of the aftershocks. Commercial real estate is a classic lagging industry and this recession
A top headline, once again, is the virtual disappearance of the sales market. In the past three years, the sales count has fallen from 61 to 44 to 15 respectively.
Volume over the same time period has gone from $684 million to $358 million to $46 million. There remains a strong disconnect between buyers, sellers, and lenders.
Alicia Moody, +1 804 200 6418, Alicia.Moody@am.jll.com