Lenders foreclose on Four Seasons Resort in Las Colinas

Lenders finally made good on threats to foreclose on the posh Four Seasons Resort and Club Dallas at Las Colinas.

Mortgage holders sold the 431-room luxury Irving golf course hotel, conference center and spa at auction Tuesday morning. The foreclosure comes seven months after lenders first posted the 400-acre property for sale after the owners missed payments on the more than $175 million in debt.  During that time, hotel owner BentleyForbes of California continued to negotiate with servicing companies which represented owners of the securitized debt.  The lenders themselves bought the property at auction for $122 million, said George Roddy, president of Addison-based Foreclosure Listing Service.

“They started the bidding at $110 million and there was another bidder so they went up,” Roddy said.  Typically the lenders at foreclosure auctions acquire the property in all but a small number of cases where outside investors purchase the real estate.  The Las Colinas Four Seasons – which had original debt of $183 million – is the largest North Texas property to be foreclosed on in more than two decades.  The hotel is the home of the annual Byron Nelson Championship golf tournament.

BentleyForbes officials said Tuesday that after 18 months of negotiations they were able to work out a new loan agreement for the Four Seasons with some of the lenders. But not all the complicated debt holders would go along with the proposed modification.  The Los Angeles-based investors bought the property at the top of the market four years ago and invested another $60 million in improvements in the hotel.  Click here for full article from Dallas News