The Iron Horse Hotel in Milwaukee could have a new owner by mid-October as Tim Dixon, the hotel’s owner and developer, looks to sell the property to resolve its ongoing Chapter 11 bankruptcy.
Dixon opened the 102-room boutique hotel in 2008 after redeveloping a six-story, nearly 96,000-square-foot former warehouse building at 500 W. Florida St. in Walker’s Point.
In 2022, Dixon filed for bankruptcy citing the impact of the COVID-19 pandemic on the hotel industry.
According to new court filings, Dixon intends to market and sell the hotel to reach an agreement with its lender as that “is the best option to maximize value for its estate and creditors,” Dixon’s attorneys wrote.
Beginning in July, real estate firm JLL began marketing the property, which Dixon’s Rider Hotel LLC is seeking court approval to hire.
“(JLL) developed a list of approximately 2,400 investors whom it believed may be interested in, and would have the financial resources to consummate, a sale,” court documents say.
In the coming weeks the hotel’s ownership company, Rider Hotel LLC, will review bids and execute a “stalking horse” agreement which would establish a price for other bidders to beat during a potential auction. The auction could begin Sept. 19 and, pending court approval, the hotel could be sold by Oct. 16, according to court documents.
Throughout the bankruptcy proceedings, the Iron Horse Hotel has remained open.
Dixon did not respond to a request for comment.
