The Real Deal Miami

Renaissance Fort Lauderdale hits special servicing

April 23, 2012 03:00PM

HEI CEO Gary Mendell and the Renaissance Fort Lauderdale

The Renaissance Fort Lauderdale hotel has been placed in special servicing, the South Florida Business Journal reported. Connecticut-based HEI Hospitality, which owns the 233-room hotel at 1617 SE 17th Street, took out a $40 million mortgage on the property in 2007 that’s set to mature in June.

Trepp data shows HEI is current on the loan through April, but its been extended twice with below-market interest rates. In 2011, the hotel generated $2.9 million in net operating income, a substantial decline from income levels when the loan was originally taken out. Berkadia is the special servicer of the loan, which was underwritten by UBS Real Estate, and it can negotiate a modification or seek legal action.

HEI bought the hotel for $23.5 million in 2004. [SFBJ]