147-Room Indigo Hotel Sold in Foreclosure Auction
- Jul 25, 2012
Global investment management firm Archon Group LP recently acquired the 147-room Hotel Indigo at 1719 West End Ave. at a foreclosure auction, bidding $18 million, or $122,000 per room.
According to The Tennessean, Irving, Texas-based Archon purchased the boutique hotel through a limited-liability corporation, bidding $18 million at a courthouse auction. The property went into foreclosure after developer 1719 West End Holdings and operator 1719 West End Operations defaulted on a $21 million loan from Archon.
The Indigo on West End is the second Hotel Indigo to sell. The Indigo located at 315 Union Ave. was sold to Raleigh, N.C-based Winston Hospitality Inc. for $14.25 million last year, after developers filed for bankruptcy protection, according to the Nashville Business Journal. That Indigo featured 97 rooms, 18 apartment units and six floors of office space and it enjoyed high occupancy rates. The financial woes originated from a 2008 $18 million construction loan with original lender BB&T.
Both Indigo hotels were developed by partnerships between Nashville developer Mark Lineberry and Keith Worsham, who until earlier this month were locked in bitter legal battles with accusations of embezzlement and unpaid bills both with each other and creditors. The Tennessean reports that Lineberry is still facing several charges, including a $9.3 million bankfrauding charge in connection with the Indigo hotels.
The 147-key Hotel Indigo opened in 2008 and is also known as Hotel Indigo Nashville Music Row. It features premium business services, such as a 24-hour business center, six meeting rooms and free high speed WiFi. It also features a Starbucks Golden Bean coffee shop and the Phi Wine Bar, gourmet meals and live music performance venue.
Archon has no changes planned in the near future for the hotel.
Archon Group is a consolidated global investment management firm with activities including the acquisition, development, management, financing and disposition of real estate investments, including mortgage loans secured by real estate.
Photo credit: Hotel Indigo Nashville Music Row’s Facebook page