Last updated on June 18th, 2019 at 12:02 pm
Another hotel in the Milwaukee area has recently been handed over to lenders in order to avoid foreclosure, this time in downtown Milwaukee.
State real estate records show SSC Milwaukee DT LLC, an affiliate of Atlanta-based Peachtree Hotel Group, acquired the Hampton Inn & Suites Milwaukee Downtown from Milwaukee Hotel Equity LLC, an affiliate of Shelton, Connecticut-based New Castle Hotels & Resorts. According to the state records, Peachtree provided the former owners with a loan, and accepted the deed for the property in lieu of foreclosure.
The 138-room Hampton Inn is located at the northeast corner of North Second Street and West Wisconsin Avenue. The total value of real estate transferred was $19 million.
In an email to BizTimes, a spokeswoman for New Castle said the firm had a $17.3 million loan with Peachtree, made in January 2016 for the acquisition of the hotel. New Castle announced around that time it had purchased the Hampton Inn for $10.9 million, and planned to complete systems upgrades at the hotel.
It was unanticipated new supply in the market that led to the decision to give up the property, the spokeswoman added. Several new hotels have opened in the downtown Milwaukee area in recent years, and more are under construction.
New Castle does not own or operate any other hotels in the state.
Representatives of Peachtree did not immediately respond to a request for comment.
Peachtree owns at least one other hotel in the Milwaukee area. In 2018, the firm purchased the Crowne Plaza Milwaukee West hotel in Wauwatosa for $24.5 million.
The 10-story building was constructed in 1917 and has an assessed value of nearly $10.9 million, according to city records.
News of the Hampton Inn transferring ownership in a deed in lieu of foreclosure action closely follows a similar acquisition of a hotel in Brookfield. The Sheraton Milwaukee Brookfield Hotel at 375 S. Moorland Road was acquired by an affiliate of Chicago-based investment firm Blue Vista Capital Management LLC from an affiliate of San Diego-based LLJ Ventures. The total value of the real estate transferred was $20.6 million. Built in 1972, the 389-room Sheraton Milwaukee Brookfield is the largest hotel with the largest meeting space in Brookfield.