|By Allyson Bird, The Post and Courier,
Charleston, S.C.McClatchy-Tribune Regional News
April 23, 2011--One of the largest full-service hotels in the region is under receivership and will be put up for sale.
Attorneys on Friday agreed to the appointment of a third party to take possession of the Sheraton Charleston Airport Hotel off Montague Avenue while a foreclosure lawsuit unfolds.
An out-of-state firm called Hospitality Receiver LLC will fill the role of receiver. It will collect all income the 289-room property generates during the case.
The company also will list and sell the hotel.
Court documents filed on behalf of the U.S. National Bank Association state that the owner of the property, APHM North Charleston LLC, owes more than $21 million plus interest, which continues to accrue at more than $6,000 per day.
County real estate records show that the company paid $20 million for the Goer Drive lodging in 2006.
A letter from the lender's attorney to APHM said the borrower has not made a mortgage payment since July 2010. The letter said that nonpayment constitutes a default under the terms of the loan and demanded that APHM pay the entire outstanding principal immediately, plus interest and charges.
The mortgage document shows the hotel ownership group is closely affiliated with American Property Hospitality Management LLC, based in Southern California.
Attorneys representing the U.S. National Bank Association and APHM North Charleston agreed in court Friday that employees at the Sheraton would receive more than $51,000 in compensation for earned and unused vacation time.
The eight-story hotel, just around the corner from the North Charleston Coliseum and Performing Arts Center and the Charleston Area Convention Center, includes 13 meeting and banquet spaces. It is a frequent meeting destination for professional groups and class reunions.
A local development group and Metropolitan Life Insurance Co. built the lodging in 1982 under the Marriott flag at a cost of $20 million. It was a Hilton property before switching to Sheraton in 1997.
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