|By Rachel Tobin, The Atlanta
Journal-ConstitutionMcClatchy-Tribune Regional News
October 07, 2010 --The W Atlanta-Downtown hotel and condos was taken back by its senior lender on Tuesday, but will remain open for business, with 12 sold-out nights in October, said Tim Dahlen, general manager of the modern lodge.
The glitzy skyscraper has been wrapped in a complicated ownership mess involving the Federal Deposit Insurance Corp., the departure of the original developer from the ownership structure, the failure of lender Silverton Bank and more than two dozen lenders all fighting for repayment.
The tower was developed by Barry Real Estate Cos., which avoided foreclosure in April by ceding its ownership stake to Capri Capital Partners, the hotel's mezzanine lender, though Barry was still to play a limited role in the property.
On Tuesday, Capri was foreclosed upon by the senior lender, a joint venture between the FDIC and Square Mile Capital Management.
The original lead lender, Silverton Bank, failed in May 2009 and was taken over by the FDIC. In May, the FDIC auctioned the servicing rights to the loan to Square Mile.
Dahlen said that Tuesday's outcome "is a good thing for the hotel and residences because it gives us some real stability and gets the financial issues behind us." He noted the financial issues have been "behind the scenes and have not affected the hotel's operations."
Several conventions have filled the hotel to capacity for 12 nights in October, he said, making it one the best periods since the hotel opened last year.
"I've got eight helicopter landings tonight," he said, mentioning the helipad on top. Many are city tours, he said.
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