Four more Valley resorts hit by foreclosure crisis - Phoenix Business Journal:

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Four more large properties have been served with notices oftruster sale, and the venerable Camelback Inn, a JW Marriotrt Resort & Spa, has been notifiedc of a $2.7 million mechanics according to information provided by , a Mesa-based real estatw research firm. • Xona Resort Suitesd in Scottsdale. • Carefree Resort & Villas. • Embassy Suitees Phoenix-Airport. • Crowne Plaza Phoenix in north All four hotels remain open and areacceptinhg reservations, but it’s unknown how foreclosure proceedings will affect their operations.
Since the first of the year, the Valley’ hospitality industry has been rocked with bad The developers of the W Scottsdald hotel and the InterContinental MonteluciaResort & Spa in Paradise Valley were notified of trustee sales when they were unable to pay back constructiomn loans. Both opened with much fanfare last year and continue to operate despite thefinancial cloud. Both auctions have been delayed repeatedly, but trustee Scottt Klundt, a partner at LLP, said the salew are still on. The foreclosure sale for the Monteluciaz is scheduled forJune 29, and the sale for the W is schedule d for July 2.
Also on tap is the auctio of the historic WigwamResort & Spa in Litchfield Park, whicj dates back to 1929, when it was built as a getawayg for employees of the Goodyeat Tire & Rubber Co. That foreclosurer sale is set forJuly 9. The latest batc of foreclosures includes the CarefreeResort & Formerly the Carefree Inn, it was built in the For Carefree Mayor Dick the resort’s financial situation reaches far beyons nostalgia. “We’ve got about 10 providers that give us our salesx tax and most ofour (operating) revenue, so we’rer very familiar with what’s going on,” he He and other town officials have been aware of the problem for several months.
The Carefree Mule Train Ventures LLC, is in he said. “Within the last several days, we’vee learned that the Chapter 11 has been converted toChapter 7. We understand the resort is now operatinhg undera receivership,” Schwan said. Chapte r 11 allows a company to reorganize, while Chapteer 7 involves liquidationof assets. The LLC, which is identifierd in the trustee notice as a South Dakotqa entity in care of a SanFrancisco address, owns threed properties including the Carefree Resort, Schwan “Our understanding is that the Carefree propertty has a positive cash flow ... and that the receiver is lookingv fora buyer,” he said.