Hilton Garden Inn Sells for $12.4M at Auction; K. Hovnanian Buys Meadow Lakes

By Adrian Maties, Associate Editor The Hilton Garden Inn Cleveland Downtown will soon have a new owner. JPMCC 2006-LDP7 Carnegie Avenue L.L.C., a representative for the current mortgage holder, submitted the winning bid at a sheriff’s auction on the morning of Aug. 27, The Cleveland Plain Dealer reported. Standing 11 stories tall, the hotel opened [...]

The Hilton Garden Inn Cleveland Downtown will soon have a new owner. JPMCC 2006-LDP7 Carnegie Avenue L.L.C., a representative for the current mortgage holder, submitted the winning bid at a sheriff’s auction on the morning of Aug. 27, The Cleveland Plain Dealer reported.

Standing 11 stories tall, the hotel opened in 2001 and together with the adjacent conference center cost $25 million to build. The hotel is located at 1100 Carnegie Ave. and includes amenities such as WiFi, 32-inch flat-screen TVs, a business center, 13 meeting rooms, parking, a fitness center and an indoor swimming pool.

The 240-room hotel near Progressive Field was purchased for $12.4 million, almost twice its appraised value of about $6.6 million. The minimum bid for the asset was set at $4.4 million. The property went into foreclosure in January 2011, after the ownership group led by Harvey Scach defaulted on a $17.8 million loan scheduled to mature in 2016. It is yet unknown what the lender plans to do with the hotel and conference center.

In other real estate-related news, K. Hovnanian Homes announced on Aug. 22 that it has purchased the remaining unsold lots and acreage at Meadows Lake. The acquisition makes K. Hovnanian the largest publicly traded national homebuilder in North Ridgeville.

Meadow Lakes is the largest and fastest-selling new home community in North Ridgeville, Ohio. With the acquisition, the Red Bank, N.J.-based national builder now owns more than 700 home sites; 67 of them are immediately available.

Tom Oster, division president of the Ohio Division of K. Hovnanian Homes, said, “Meadow Lakes has consistently been a top‐selling community in Northeast Ohio. We are pleased that we will be able to generate new jobs, improve city tax revenues and aid in the positive development of North Ridgeville. In addition, our presence in Meadow Lakes will afford home buyers the experience, strength and proven track record that come from a family homebuilder.”

Image courtesy of http://hiltongardeninn3.hilton.com.