|By Phil Villarreal, The Arizona Daily
Star, TucsonMcClatchy-Tribune Regional News
May 11, 2012--The Flamingo Hotel may soon come under new ownership. Although the hotel isn't technically for sale, its debt is up for auction. Someone can bid on the debt, become the primary lienholder and foreclose on the property.
The iconic hotel, at 1300 N. Stone Ave., is known as an example of Moderne architecture style, with its neon sign and keyhole-shaped pool.
Franchised by Choice Hotels International and currently labeled as a Quality Inn, ownership of the 80-room hotel is in flux because Choice failed to pay a $1,921,600 note that was due May 3, said real-estate agent Michelle Hotchkiss, who is looking to help out interested bidders.
The overdue note is owned by a group of anonymous investors, Hotchkiss said. Those interested in bidding on the note can visit auction.com starting Monday. The auction, which is starting at a $600,000 bid, lasts through Wednesday.
Those interested in placing a bid can contact Hotchkiss at 878-6399.
She said she suspects that the reserve price is north of $1 million. The Pima County assessor lists the full-cash value of the land and building at $1.4 million for 2013. In theory, an investor could buy the loan at $1 million, foreclose and resell it at a profit.
The property was last sold in 2004 for $1,648,000.
"I'd like to see it become a boutique hotel," Hotchkiss said. "Preferably not apartments or student housing."
Did you know?
The Flamingo Hotel was built in 1952 by Del Webb, which also built the famous Las Vegas hotel of the same name.
Contact reporter Phil Villarreal at 573-4130 or email@example.com
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