|By Larry Rulison, Times Union, Albany,
N.Y.McClatchy-Tribune Regional News
March 20, 2012--COLONIE -- The Holiday Inn on Wolf Road is being foreclosed on by U.S. Bank, which is the trustee of a $21.5 million mortgage on the 312-room hotel.
The hotel, which is owned by Madison Capital Management of Greenwood Village, Colo., has also been placed under control of a receiver, Albany attorney William Conboy II, until the foreclosure process is completed in state Supreme Court in Albany County.
Madison Capital acquired the six-story hotel, which includes a restaurant and cocktail lounge, in 2006 and took out the $21.5 million mortgage from a company called Greenwich Capital Financial Products LLC.
Greenwich Capital, which is owned by the Royal Bank of Scotland and is now called RBS Financial Products, with Goldman Sachs subsequently packaged the loan into $4 billion in mortgage-backed securities.
Madison Capital owns the hotel through a limited liability company called Rich Albany Hotel.
Aik Hong Tan, a principal with a company called Greenwood Hospitality Group, also in Greenwood Village, Colo., is listed as the president of Rich Albany Hotel in real estate documents filed in Albany County.
Contacted by phone on Monday, Tan referred calls to Conboy, who declined to comment.
Emily Byer, a spokeswoman with Madison Capital, said the company "would prefer not to comment" as well.
RBS Financial Products, the company that provided the loan to the Madison Capital entity that owns the hotel, agreed last fall to a $52 million settlement with the state of Massachusetts and Attorney General Martha Coakley for its alleged role in the subprime mortgage crisis. Coakley's office said that when it was known as Greenwich, RBS Financial Products financed, purchased and securitized residential loans that were unfair under Massachusetts law.
Those types of loans were not packaged along with the Holiday Inn loan, which was placed into a large pool of commercial real estate loans from all around the country. Many of the loans in that Goldman Sachs product, known as the GS Mortgage Securities Trust 2006-GG8, have gone into default like the Holiday Inn loan.
The Holiday Inn on Wolf Road, formerly known as the Holiday Inn Turf, was sold to Madison Capital in 2006 by the local Hoffman family that also owns the Holiday Inn on Western Avenue, the Hampton Inn Suites in Saratoga Springs and the Homewood Suites also on Wolf Road. The family also owns the Jacob & Anthony's American Grille in Saratoga Springs and the Holiday Inn in Lake George.
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