Buckhead Hotel declared in default on $ 46.6 million mortgage balance
A hotel on Lenox Road in Buckhead has been declared in default on a mortgage balance of nearly $ 46.6 million and a courthouse front sale is slated for October 5.
The default on the Atlanta Marriott Buckhead Hotel and Conference Center at 3405 Lenox Road, across from Lenox Square Shopping Center, was described in a legal notice of September 8 in the Fulton County Daily Report, the county’s legal body. (The hotel should not be confused with the JW Marriott Atlanta Buckhead hotel just down the street at the corner of Lenox and East Paces Ferry Road.)
The hotel was the subject of a mortgage loan of $ 50.5 million in 2016 over a period of 10 years, according to legal notices and real estate records. Since then, $ 3,944,777 in principle has been paid, leaving a balance of $ 46,555,223, according to real estate records. According to the legal notice, the owner did not make the monthly payments from November 2020 “and thereafter”, triggering the default and the demand to pay the full amount.
The owner and borrower is PHF II Buckhead LLC, a Delaware corporation related to Atrium Holding Company in Arizona. The holding company is a subsidiary of Alpharetta-based Atrium Hospitality, which owns and operates hotels under several brands, including Marriott, and which lists the Lenox Road Hotel on its website as part of its portfolio. Atrium and the Marriott International hotel chain did not respond to requests for comment.
The current loan holder is LNR Partners LLC of Florida through Trust and Another LLC, according to the legal notice. Edwin Garrison, an Atlanta lawyer representing the loan holder, declined to comment.
Other legal notices published last month referred to a cash sale on the steps of the courthouse for September 7. There is no explanation as to why this did not happen and the new date announced. According to the legal notices, Marriott and PHF II Buckhead LLC have a right of first refusal on a sale.
In March 2020, the hotel laid off 145 employees, according to an Atlanta Business Chronicle report. The hotel building dates from 1975, according to county property records, and has undergone several ownership changes and rebranding over the decades.