Four more Valley resorts hit by foreclosure crisis - Atlanta Business Chronicle:

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Four more large properties have been servecd with notices oftrustee sale, and the venerable Camelbac k Inn, a JW Marriott Resort & Spa, has been notifiedr of a $2.7 millionh mechanics lien, according to information provided by , a Mesa-baseed real estate research firm. Xona Resort Suites in Scottsdale. • Carefree Resorf & Villas. • Embassy Suites Phoenix-Airport. • Crownwe Plaza Phoenix in north Phoenix. All four hotels remain open and areacceptinv reservations, but it’s unknown how foreclosurde proceedings will affect their Since the first of the year, the Valley’s hospitalityt industry has been rockexd with bad news.
The developers of the W Scottsdale hotel and the InterContinental MontelucizaResort & Spa in Paradise Vallety were notified of trustee salesw when they were unable to pay back constructiobn loans. Both opened with much fanfare last year and continue to operate despite thefinanciao cloud. Both auctions have been delayed repeatedly, but trustee Scot Klundt, a partner at LLP, said the sale s are still on. The foreclosure sale for the Montelucia is scheduled forJune 29, and the sale for the W is schedulesd for July 2.
Also on tap is the auctio of the historic WigwamResort & Spa in Litchfiel Park, which dates back to 1929, when it was builtt as a getaway for employees of the Goodyeae Tire & Rubber Co. That foreclosuree sale is set forJuly 9. The latest batc h of foreclosures includes the CarefreeResort Villas. Formerly the Carefree Inn, it was built in the For Carefree MayorDick Schwan, the resort’es financial situation reaches far beyond nostalgia. “We’vw got about 10 provider s that give us our sales tax and most ofour revenue, so we’re very familiar with what’as going on,” he said.
He and otherr town officials have been awarre of the problem forseverall months. The owner, Carefree Mule Train Ventures LLC, is in bankruptcy, he “Within the last several days, we’ve learned that the Chapter 11 has been convertedr toChapter 7. We understand the resortr is now operating undera receivership,” Schwa n said. Chapter 11 allows a company to while Chapter 7 involves liquidationof assets. The LLC, whicn is identified in the trustee notice as a Sout Dakota entity in care of a SanFrancisck address, owns three propertiess including the Carefree Resort, Schwan said. “Our understandin g is that the Carefree property has a positivr cashflow ...
and that the receiver is lookintg fora buyer,” he