LAS VEGAS, NV (August 19, 2009) � Affiliates of Canyon Capital Realty
Advisors (�Canyon�) and Spectrum Group Management LLC (�Spectrum�) have
completed the foreclosure process on the Greek Isles Hotel and Casino located
just off the Strip in Las Vegas, and immediately announced their intent
to keep the property open for business while assessing the hotel and casino�s
future.
In July 2007, Canyon and Spectrum provided a $56 million loan to the
borrower for the $83 million purchase of the property, formerly known as
the Debbie Reynolds Hotel and Casino. The borrower
had originally planned to sell or redevelop the property, but due to constraints
in the capital markets, was unable to raise the necessary funds to undertake
the development. At its peak, the property was appraised at
$120 million. The borrower defaulted on the loan, and Canyon and Spectrum
filed for foreclosure in December of 2008.The foreclosure process was completed
on Monday, August 10.
Greek Isles Hotel and Casino
305 Convention Center Drive,
Las Vegas, Nevada
Jackie Gaughan opened the Royal Inn Casino in 1972. It operated as the
Paddlewheel for several years, then in 1993 Debbie Reynolds acquired the
property. In 1999 the hotel was sold to the World Wrestling Federation.
The WWF sold it to Mark IV Realty Group in 2000. Mark IV partnered with
Delta Airlines and United Airlines to turn it into a crew hotel in 2001. |
�We are now focused on assessing the property, and developing a plan
to move forward,� said Canyon Senior Director Richard Bosworth. �We want
to make it clear that ownership is committed to keeping the Greek Isles
Hotel and Casino open for business as we determine the next steps for the
property.�
Peter Locke, a Principal at Spectrum added, �Although the current environment
in Las Vegas is challenging, the property�s exceptional location, as evidenced
by its proximity to the proposed Convention Center expansion and recent
hotel/casino developments on the north-end of the Strip, should provide
the new owners with significant upside potential through a redevelopment
or repositioning of the hotel as the market recovers.�
The 202-room Greek Isles is uniquely situated within walking distance
of both the Las Vegas Convention Center and the famous Las Vegas Strip.
The resort caters to both business and leisure guests. The hotel
features banquet and meeting space, a casino, an outdoor pool/spa, a wedding
chapel, 24-hour bar and lounge, as well as a fitness room. The property
also boasts a Broadway-quality 450-seat showroom and two smaller theaters
with nightly shows and a Karaoke lounge.
Both Canyon and Spectrum are highly-experienced investors in the hotel
and casino industries, with successful investments in markets throughout
the country, including Nevada. The firms will draw on their deep
relationships and experience in the hospitality industry to develop a game
plan that will maximize the value of Greek Isles.
About Canyon Capital Realty Advisors LLC
Canyon Capital Realty Advisors LLC and its affiliate Canyon Capital
Advisors LLC are registered investment advisors and money management firms
based in Los Angeles, Calif., with more than $15 billion of capital under
management. Canyon�s real estate activities focus on providing debt
and equity capital to real estate owners, operators, developers, corporations
and entrepreneurs, enabling them to participate in transactions that would
have traditionally eluded them due to capital constraints. The CCRA
team has completed over 226 real estate and mortgage transactions totaling
more than $3.6 billion of invested capital, including the origination of
senior, mezzanine and bridge loans, note acquisitions, recapitalization
of partnerships, and the acquisition of over 12 million square feet of
real estate. These investments encompass a diverse mix of real estate
property types including retail, entertainment, multi-family, industrial,
office, hospitality, land, mobile home and mixed-use and mortgage loans
secured by such property types.
About Spectrum Group Management LLC
Spectrum Group Management LLC is a multi-strategy asset management
firm focused on distressed credit markets, secured lending and special
situations. Spectrum�s investment strategy enables it to invest both
long and short and is dedicated to preserving and growing capital by investing
in opportunistic tranches of the capital structure of tangible assets and
companies. Spectrum was founded in 1999 and is headquartered in New
York City.
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