Marriott at Dorchester’s South Bay Mall Facing Foreclosure
The 164-room Courtyard by Marriott, next to South Bay in Dorchester, is set for a foreclosure auction next month.
GE Business Financial Services Inc. is foreclosing on the 5-year-old hotel and an adjacent unfinished restaurant building after owner Jiten Hotel Management Inc. defaulted on a $16.2 million mortgage.
“The loan matured, and they didn’t pay it,” said Marcia Robinson, the Boston attorney handling the sale. “That’s the biggest default that you can have.”
Based in Brockton, Jiten owns 15 hotels in five states.
Jiten CEO Nayan Patel said he’s been trying to negotiate with GE Financial, but the lending climate is difficult.
“GE doesn’t want to extend (the loan), and nobody would finance it,” Patel said. “I can’t cover the mortgage.”
The credit crunch is hitting hotel owners across the country, according to Matt Arrants, managing director of Pinnacle Advisory Group, a Boston hospitality consulting firm.
“We’re starting to see more and more of this now, where lenders are taking properties back and selling them,” he said. “There’s a lot of money out there looking for deals. They’re buying at a discount, so it’s easier to get financing if the price is right. Some buyers are even going all-cash.”
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