The hotel that once played host to Michael Jackson, Charlton Heston and Reba McEntire will be up for foreclosure sale Aug. 2.
Walton Way Hotel LLC, the owner of the Partridge Inn at 2110 Walton Way, defaulted on a $16 million loan, according to Richmond County Superior Court records.
The Atlanta investment company bought the hotel in 2005 for $8.1 million and spent millions more to renovate its rooms, lobby and other amenities.
The owners lost a lawsuit in Superior Court on June 29, and foreclosure notices were filed.
Court records said Walton Way Hotel failed to make a monthly payment Sept. 6, 2009. The owners were given notices in November and December 2009 that the "amount had been accelerated."
An entity named Walton Way Limited Partnership gave notice Jan. 27 that the debt was due, then filed suit Feb. 18.
The $16 million commercial mortgage was originally issued by Greenwich Capital in December 2006.
The mortgage changed hands and landed with Bank of America after a merger with LaSalle Bank.
After the default mentioned in the court documents, Bank of America assigned the right, title and interest in the loan to Walton Way Limited Partnership in April 2010.
Attorneys for both Walton Way Limited Partnership and Walton Way Hotel could not be reached for comment Friday. Messages placed with the general manager of the Partridge Inn also were not answered Friday.
The hotel has remained open since the court ruling and the filing of the foreclosure notice.
The foreclosure sale will be Aug. 2 at the courthouse, according to a legal notice.
The Partridge Inn, which celebrated its 100th anniversary last year, was built in 1836 as a private residence. Morris Partridge bought the property in 1892 and opened the it as a 60-room upscale hotel Jan. 8, 1910. The hotel now has 144 guest rooms, more than 5,000 square feet of meeting space and more than a quarter-mile of wrap-around verandas and balconies.
Walton Way Hotel's mailing address is on Peachtree Street in Atlanta, in care of New South Partners LLC, which received a historic preservation honor from Historic Augusta for the renovation of the hotel.
The Partridge Inn also received a $2.5 million loan guarantee for acquisition and rehabilitation of the hotel, with the goal of creating 53 jobs for low-income people, according to the city's Housing and Community Development Department.
Riverman1 will be ecstatic.
countyman will say that this is proof that the Augusta economy is booming.
DowntownJaguar,
Bad news! To folks like you, Riverman1 and myself.
But, as you say, (C)ountyman will spin it as the greatest economic news for the CSRA since the announcement of the establishment of SRP/SRS in the late forties/early fifties.
A reader's eagle eye on a legal notice led to this brief. We are still reporting and will have more later -- and tomorrow.
Thanks, Craig Spinks. DowntownJag...ha....But speaking of Jaguars, I wish ASU would somehow end up with this venerable hotel where we've all had great times. It would fit with them beautifully.
Well this is definitely not good news.The PI is an Augusta institution.
Hopefully someone will buy it, continue to make upgrades and keep this wonderful historic hotel open.
LOL--good point Riverman1. I hope someone can rescue it. I would hate for it to end up like the Bon Air.
Thanks, Raul...3 times..heh. But think about it for a minute. ASU wants dorms badly, but the neighborhood doesn't want any new construction. Why not use the Partridge Inn? It would save the building, get it under state ownership, help the college tremendously and expand the college without construction or moving into the neighborhood. This is a once in a lifetime opportunity for ASU.
It is a landmark that should be kept. Walton Way would not be the same. Many memories.
Well, the Indian folks are in town buying up things at the Chronicle. They love hotels. Maybe they could swing by and take a look at it if Augusta State doesn't want it. But, seriously, I want everyone to get behind the state buying it for ASU. That's room for at least 300 students real close to the main campus. They would keep the historic character of the building and serve a pressing need with housing for students.
The residents around the college don't want expansion of ASU, but I believe they would be willing to accept this idea. If not who knows how it will end up. Look at what happened to the Bon Aire that used to be one of the most beautiful hotels in the nation.
How does Noble Investment fit into this? Trace the money...
No...say it ain't so...I loved Sunday Brunch there.......:()
"Retired Army" the condo idea is a good one, but would you really want to live across the street from the Ghetto Bon-Air.
I don't think ASU acquiring the PI is a good idea.They acquired the historic Forest Hills Hotel back in the late 1980's and look at where that hotel is today.
The best idea for this property is for it to continue to be operated as it was intended...as a first class hotel
Floridasun, it is being reported in other places that they simply don't have enough guests to pay the bills. It has just been remodeled, so I doubt there's any interest in continuing it as a hotel. Again, look at the Bon Aire and consider the alternative to ASU taking it.
@floridasun. I'm not familiar with the Forrest Hills Hotel issue. Can you elaborate. Continuing use as a hotel is fine if someone would buy it for that purpose. Got to ask yourself though, why didn't that work out under the current owners?
Friends, let's all be honest here, the Partridge has had it as a hotel. Business travelers are using the new, easy motels. Augusta is simply not a destination city for tourists except for the Masters. Organizations using the meeting areas can find better facilities in other places that are more convenient around I=20 and so on. This place will end up condos with charity housing, under whatever name. We need something drastic to save it. The Summerville residents would get behind ASU and the state buying it if they are smart.
A call was placed to Noble Investment. An investor relations spokesperson there said that the company does not have interest in the hotel, despite its listing on Noble's website.
Raul
The Forest Hills Hotel was a historic hotel similar in appearance to the Bon Air, adjacent to he Forest Hills golf course that ASU acquired supposedly for expansion. Then they tore the historic property down and eventually sold the property to Billy Morris. It has sat vacant for about 20 years.
Riverman, the PI is located close to downtown and the medical district. Not everyone wants to stay in the cookie cutter chain hotels on Washington Rd. In my opinion Washington Rd is one ugly strip, and is a really poor representation of Augusta
The bottom line, the PI needs to be saved!
What a hoot!!!! LOL I know the participants in the bridal party!!!! Wedding is to be held there tomorrow evening!!!
What a shame, the PI, was a wonderful part of Augusta's history and social calendar. I do love the idea of it becoming a part of ASU rather than ending up like the Bon Air. Like some others, I don't think upscale condo's would be the ticket as it would be cheaper to mow it down and begin anew. Augustans need to keep thinking though, and exchanging
ideas. How about as a medical facility, any usage there?
Floridasun, they just had the multimillion dollar renovation 10 years ago and they are still not able to make the payments, much less turn a profit. It's not going to work as a hotel as nice as that would be. So we have to consider the other options.
Let's not overlook this: "The Partridge Inn received a $2.5 million loan guarantee for acquisition and rehabilitation of hotel with the goal of creating 53 jobs for low-income people, according to the city's Housing and Community Development Department."
Riverman, the sale is 2 August. Do you think ASU could go through the whole decision making/financial process in that short of time? I would hope so, but the wheels of bureaucracy grind slowly. We will see. If I was a student, I would rather live in a place with some history and class rather than a sterile dorm environment.
ASU didn't just tear down the old VA. It had many issues, abestos was one of them. That was one of the reasons the VA built the facility on 15th Street. There was no way ASU could remove the abestos and remodel it to make it function as needed. I believe they knew it when it was purchased, but I'm not 100% sure of that. I hope the PI remains a hotel.
This is a real shame, I love the Sunday brunch there, or drinks at the Verandah Bar, but I can see that there isn't much demand for people staying there.
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