The Boston Herald reports that the W Boston hotel may be going into foreclosure. Prudential Insurance Co. is pushing for the hotel to foreclose. While a Boston real estate lawyer can better explain the process of foreclosure, if the W Boston does go through foreclosure, it may end up costing the city of Boston more than $10 million in city loan funds. Prudential initially invested $192 million into W Boston.
Prudential is opposed to the developer Sawyer Enterprises' idea to rent out a quarter of the high end condos in the building by saying that rentals of the condos will only bring about wear and tear. The rentals may also prevent future sales of the condos because of the stigma attached to being a rental property. Prudential submitted a court filing that stated: "The debtor has demonstrated no ability to mount a fresh sales campaign to rehabilitate its business or otherwise reorganize nor does it have any prospects for such reorganization on the horizon."
Sawyer countered back by saying that the lease "will serve to strengthen its income stream, bolster its marketing efforts and better its chances of structuring a viable (bankruptcy) reorganization." The city of Boston also sounded alarmed at the prospect of foreclosure. If Prudential is able to foreclose on the property, it is likely that it would sell off the condo units at bargain basement prices. In court filings, the city's attorney wrote: "It would be simply unconscionable for Prudential to wipe out, through foreclosure proceedings, all of the value that it has watched the city of Boston pour into the project."
The case's next hearing will be this November. If you, like W Boston hotel are suffering from the possibility of a foreclosure, make sure to call a Boston real estate attorney.
Related Resources:
- Mayor Menino Calls Vornado Out On Real Estate Plans (FindLaw's Boston Real Estate Law News Blog)
- Call A Boston Real Estate Lawyer (FindLaw)
- Park Lane Seaport Apartments Building For Sale (FindLaw's Boston Real Estate Law News Blog)
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