|By Kyle Martin and Tim Rausch, The
Augusta Chronicle, Ga.McClatchy-Tribune Regional News
July 16, 2011--The hotel that once played host to Michael Jackson, Charlton Heston and Reba McEntire will be up for foreclosure sale Aug. 2.
Walton Way Hotel LLC, the owner of the Partridge Inn at 2110 Walton Way, defaulted on a $16 million loan, according to Richmond County Superior Court records.
The Atlanta investment company bought the hotel in 2005 for $8.1 million and spent millions more to renovate its rooms, lobby and other amenities.
The owners lost a lawsuit in Superior Court on June 29, and foreclosure notices were filed.
Court records said Walton Way Hotel failed to make a monthly payment Sept. 6, 2009. The owners were given notices in November and December 2009 that the "amount had been accelerated."
An entity named Walton Way Limited Partnership gave notice Jan. 27 that the debt was due, then filed suit Feb. 18.
The $16 million commercial mortgage was originally issued by Greenwich Capital in December 2006.
The mortgage changed hands and landed with Bank of America after a merger with LaSalle Bank.
After the default mentioned in the court documents, Bank of America assigned the right, title and interest in the loan to Walton Way Limited Partnership in April 2010.
Attorneys for both Walton Way Limited Partnership and Walton Way Hotel could not be reached for comment Friday. Messages placed with the general manager of the Partridge Inn also were not answered Friday.
The hotel has remained open since the court ruling and the filing of the foreclosure notice.
The foreclosure sale will be Aug. 2 at the courthouse, according to a legal notice.
The Partridge Inn, which celebrated its 100th anniversary last year, was built in 1836 as a private residence. Morris Partridge bought the property in 1892 and opened the it as a 60-room upscale hotel Jan. 8, 1910. The hotel now has 144 guest rooms, more than 5,000 square feet of meeting space and more than a quarter-mile of wrap-around verandas and balconies.
Walton Way Hotel's mailing address is on Peachtree Street in Atlanta, in care of New South Partners LLC, which received a historic preservation honor from Historic Augusta for the renovation of the hotel.
The Partridge Inn also received a $2.5 million loan guarantee for acquisition and rehabilitation of the hotel, with the goal of creating 53 jobs for low-income people, according to the city's Housing and Community Development Department.
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Copyright (c) 2011, The Augusta Chronicle, Ga.
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