Calif. resort that hosted AIG faces foreclosure
6/10/2009
The Southern California resort where AIG sponsored a luxury retreat after receiving federal bailout money is facing a foreclosure auction, according to a published report.
The owners of the St. Regis Monarch Beach in Dana Point are in default on a $70 million loan from Citigroup Global Markets Realty Group, and the coastal resort will go on the block July 7 unless they can negotiate a new agreement with the lender, the Los Angeles Times reported in Wednesday's edition.
The newspaper cites unnamed sources knowledgeable about the debt but speaking on condition of anonymity because of the sensitivity of the situation. The sources say the owners refinanced the property in 2007 and incurred $300 million in debt. They said the owners are current on two other mortgages totaling $230 million.
The St. Regis, which has 400 rooms, a golf course, several restaurants and a private beach club, has seen a steep drop in bookings amid the deepening recession.
Citigroup and resort co-owners Capital Pacific Holdings Inc. and Farralon Capital Management declined to comment.
"The situation will have no impact on our regular operation," St. Regis spokeswoman Leah Goldstein said, adding that Starwood Hotels & Resorts will continue to manage the property.
The sprawling resort became a symbol of corporate excess when the giant insurer American International Group Inc. spent some $440,000 on a posh retreat for its executives.
The Southern California resort where AIG sponsored a luxury retreat after receiving federal bailout money is facing a foreclosure auction, according to a published report.
The owners of the St. Regis Monarch Beach in Dana Point are in default on a $70 million loan from Citigroup Global Markets Realty Group, and the coastal resort will go on the block July 7 unless they can negotiate a new agreement with the lender, the Los Angeles Times reported in Wednesday's edition.
The newspaper cites unnamed sources knowledgeable about the debt but speaking on condition of anonymity because of the sensitivity of the situation. The sources say the owners refinanced the property in 2007 and incurred $300 million in debt. They said the owners are current on two other mortgages totaling $230 million.
The St. Regis, which has 400 rooms, a golf course, several restaurants and a private beach club, has seen a steep drop in bookings amid the deepening recession.
Citigroup and resort co-owners Capital Pacific Holdings Inc. and Farralon Capital Management declined to comment.
"The situation will have no impact on our regular operation," St. Regis spokeswoman Leah Goldstein said, adding that Starwood Hotels & Resorts will continue to manage the property.
The sprawling resort became a symbol of corporate excess when the giant insurer American International Group Inc. spent some $440,000 on a posh retreat for its executives.
