Mezzanine Lender Takes Back W Hotel December
12-15-2009 | Source: Real Estate Finance & Investment
LEM Mezzanine gained control of the
W New York – Union Square hotel at a foreclosure auction Tuesday. The auction was scheduled in mid November after previous owners
Istithmar World and
Nakheel, units of
Dubai World, missed October interest payments on three mezzanine loans, as first reported on
iirealestate.com.
LEM assumes the $115 million securitized senior mortgage on the building and two senior mezz loans. Its $20 million mezzanine piece was part of a $117 million subordinate debt package the
Dubai World units used to boost their leverage in their 2006 purchase of the property.
LEM Mezzanine is a Philadelphia-based private equity fund operator led by
Ira Lubert,
Jay Eisner and
Herbert Miller. Executives there didn’t immediately return calls. A spokesman declined to comment beyond a statement that said “We are pleased to have completed this step to assume equity ownership of the W New York – Union Square.”