Augusta's Partridge Inn is up for foreclosure sale

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The hotel that once played host to Michael Jackson, Charlton Heston and Reba McEntire will be up for foreclosure sale Aug. 2.

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Walton Way Hotel LLC, the owner of The Partridge Inn, defaulted on a $16 million loan in September 2009. The hotel, which has played host to several celebrities and celebrations, has remained open.   File/Staff
File/Staff
Walton Way Hotel LLC, the owner of The Partridge Inn, defaulted on a $16 million loan in September 2009. The hotel, which has played host to several celebrities and celebrations, has remained open.

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.

See the foreclosure notice
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Brad Owens
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Brad Owens 07/15/11 - 09:01 pm
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Surprised...

Surprised...

Dixieman
12875
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Dixieman 07/15/11 - 09:22 pm
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This is really sad.

This is really sad.

Riverman1
79193
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Riverman1 07/15/11 - 09:40 pm
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I remember drinking on the

I remember drinking on the verandah of the lounge overlooking a walled courtyard with plants and flowers. The place had an authenic, unDisney, Southern feel to it. It was the real deal Evander Holyfield.

Riverman1
79193
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Riverman1 07/15/11 - 09:56 pm
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I used to sit drinking on the

I used to sit drinking on the verandah of the lounge overlooking the walled courtyard with beautiful plants and flowers. The place had an authenic, Southern, unDisneylike feel to it. The Partridge Inn is the real deal Evander Holyfied.

Riverman1
79193
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Riverman1 07/15/11 - 11:02 pm
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Yep, I've sat on the veranda

Yep, I've sat on the veranda of the bar drinking and looking at the walled courtyard with the flowers and plants. The place is an authenic Southern treasure of architecture and atmosphere.

Vito45
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Vito45 07/15/11 - 11:17 pm
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Just one more nail in the

Just one more nail in the Augusta coffin. People want Augusta to be a world class city, but time and again the local citizens prove they are very fickle; flocking to the place of the month, then abandoning it. This is the same behavior that will doom a new stadium.

Craig Spinks
817
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Craig Spinks 07/16/11 - 02:56 am
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Vito45, If it (the proposed

Vito45,

If it (the proposed Morris-Ripken-Jacoby-Boardman sports-plus complex) is built, it doesn't make any difference whether they(fans) come or not. All the money's to be made on the front end- not selling game tickets, "...peanuts, popcorn and cracker jack" to fans at the games and iin making retail sales n the shops contiguous to the baseball stadium.

Dixieman
12875
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Dixieman 07/16/11 - 06:55 am
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Regency Mall:Augusta

Regency Mall:Augusta Mall::Bon Aire:Partridge Inn.

owensjef2
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owensjef2 07/16/11 - 07:24 am
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Dang, I love that place

Dang, I love that place

David Parker
7921
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David Parker 07/16/11 - 08:13 am
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My spouse has been with the

My spouse has been with the PI for about 12 years. Started when the Sobels still ran the place. As far as Noble denying any interest, I don't think that's very accurate as the cover of the current employee handbook has a big Noble insignia on it, but my guess is that it came from Noble. So whether they currently do or don't have interest is irrelevant, the place went under during their watch. As far as creating jobs for 53 people, they created them, but the money that was destined to pay them was not utilized effectively. Over the course of a decade, one gets an idea of the good times and bad times with regard to income. Currently my spouse makes an average of half what they use to make. It's as simple as that and we both new this was coming due to the lack of business sense displayed by the current management, whether it be Noble or their subsidiary. At this point, I hate to see the hotel fail but bleeding our family like they've done is not a great feeling either. For better or for worse, I welcome the change and bid the current regime adieu.

Techfan
6461
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Techfan 07/16/11 - 08:19 am
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Buy the land, tear it down,

Buy the land, tear it down, and build a stadium!

justthefacts
20271
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justthefacts 07/16/11 - 08:24 am
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The problem for a Hotel like

The problem for a Hotel like the PI is the fact that, outside of the Tournament, most visitors to Augusta, who require lodging, are business folks. For them, the PI is a virtual unknown. Few business people are going to google "charming, historic, or great ambiance" when selecting their hotel. Adding to that, most business travelers are required to stay in hotels that their corporation has contracted with throughout the country. Lastly, most traveling want their "points". Too bad the PI can't be relocated to Charleston. Then you would have something.

follower
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follower 07/16/11 - 08:31 am
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doubt-it seems to be the only

doubt-it seems to be the only one that "got it". $16M is just too much debt to service, probably in the neighborhood of $100-125K per month.
Unless the occupancy rate is +70%, there's little chance of being in the black.

The property will be auctioned or someone will step in an agreed upon value that will make sense.

What doens't make sense is why anyone would lend that kind of money. The debt to income ratio had to be all out of whack. Of course, 10 years ago we weren't in this type of economy. Someone's going to lose a lot.

Craig Spinks
817
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Craig Spinks 07/16/11 - 08:40 am
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(F)ollower, Why anyone would

(F)ollower,

Why anyone would lend that kind of money? Lending "other folks money," mortgage origination fees, various and sundry other fees from banking institutions to whom the mortgage was sold, fees from mortgage bankers to whom commercial banks sold the mortgage, spread-money obtained by mortgage bankers who sell CDOs and synthetic CDOs to relatively-ignorant and -unsophisticated investors in Germany, Iceland, Japan, proceeds from "interested" and "uninterested" swaps from AIG and their ilk, to name only a few.

follower
59
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follower 07/16/11 - 09:09 am
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Craig, point taken. lol

Craig, point taken. lol

brandy111
0
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brandy111 07/16/11 - 09:10 am
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WOW all this talk about what

WOW all this talk about what ASU can do with the hotel. What about the employees that is probably scared to death that they will be out of a job.Some of those employees have been there for 20 or more years. I don't understand how Noble doesn't know about The Partridge Inn and from what I hear The General Mgr of The Partridge Inn is one of Noble's employee

allhans
23227
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allhans 07/16/11 - 09:14 am
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Things could change by August

Things could change by August 2, the debt ceiling issue might even be resolved by then..

Riverman1
79193
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Riverman1 07/16/11 - 09:27 am
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Alan English said, "A

Alan English said, "A reader's eagle eye on a legal notice led to this brief."
Ahhhh, the power and resources of the readers.

Also, I wonder what happens to the $2.5 million the city loaned them? Is the city in line to have the loan paid back when the place is auctioned off? Could the city end up owning it due to that loan? It's hard to believe the bids will be too high.

Riverman1
79193
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Riverman1 07/16/11 - 09:32 am
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Brandy, it's a shame about

Brandy, it's a shame about the employees and no one wanted the hotel to go belly up, but it's a reality. Now it's time to salvage the situation the best possible way. A hotel is perfectly designed, requiring few changes for dorm rooms. I can't think of other solutions that can utilize the building without major funds for renovations being required.

So now do we all realize when we use city money to aid the constrution of hotels downtown that we are simply taking from other venues? Imagine if the Hyatt is ever constructed as the TEE proponents say is just a matter of time.

Austin Rhodes
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Austin Rhodes 07/16/11 - 09:39 am
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Unless I am mistaken, which

Unless I am mistaken, which is possible, many of these urban renewal/community development loans are Federal funds that are merely administrated by the city...so it is not like the local treasury is out the money. Of course, that money (if paid back) would have been recycled for other uses...so it does hurt.

Sadly...there are MANY examples of such things never being paid back, and many are designed to NEVER be paid back. The Federal $$$ that went to refurbish B.L.'s Restaurant would be a good example.

Batman
18
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Batman 07/16/11 - 10:26 am
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Perhaps an alumni center for

Perhaps an alumni center for MCG / GHSU? It think it passes the 'cool' factor. Surely their alumni has the wherewithal to buy and enjoy it. I never thought the old Thunderbird Inn was a nice enough place for their alumni center. Great location but not real pleasing to the eye. And, the place is certainly too classy for an ASU alumni center or worst yet... college dorms.

countyman
19068
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countyman 07/16/11 - 11:20 am
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Dixieman?? Didn't the

Dixieman?? Didn't the Stoncerest Steakhouse complex in Evans and the majority of 29 offices go to auction in May of 2011?? When did the Augusta mall and Bon Aire go up for foreclosure lol?? Somebody better tell the corporate of the tweleve new stores and restaurants who've opened at the mall since the beginning of 2010.. Sephora, PF Changs, Pandora, CCS, Handpicked, Williams Sonoma, Jared Galleria, Apple, etc should look at expanding to other cities in GA outside of Atlanta and Augusta then..

The Whites Buillding went through foreclosure and the usual people got their shots in.. In the year 2011 34 condos are underway, all of the windows are being replaced, Sundress Market is open, and Tantra Lounge is under construction at the Whites Buiilding...

The Village at Riverwatch was stalled because of the economy and we heard the Augusta can't support anything, sky is falling, etc comments.. The 115 acre complex is under construction and the first Costco outside of metro Atlanta in Georgia opens in November..

Because of the location and history of Patridge Inn, it's a matter of time before somebody purchases the hotel..

Riverman1
79193
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Riverman1 07/16/11 - 11:33 am
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Dixieman stated, "Regency

Dixieman stated, "Regency Mall:Augusta Mall::Bon Aire:Partridge Inn.

Countyman, I don't think you understand what he meant. I totally get it. Hang in there.

Riverman1
79193
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Riverman1 07/16/11 - 11:35 am
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If that Hyatt ever goes up

If that Hyatt ever goes up how do you think that will affect other hotels? The Partridge has had it as a hotel.

seenitB4
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seenitB4 07/16/11 - 11:36 am
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riverman....ssshhh I just

riverman....ssshhh I just love it when ctyman gets confused....reading out stats & data all day makes a brain go bye-bye!

Riverman1
79193
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Riverman1 07/16/11 - 11:39 am
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SeenIt, "there are no

SeenIt, "there are no American forces close to Baghdad."

Baghdad Bob

countyman
19068
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countyman 07/16/11 - 11:47 am
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I totally understood the

I totally understood the comment about Augusta mall.. The same people have been telling us it would become Regency mall for the last ten years lol.. After ten years I wouldn't continue to say the same comment over and over.. The Aiken Mall, Mullins Crossing, etc have a much better chance at becoming Regency Mall compared to the Augusta mall.. The Aiken mall is nearly empty and Mullins Crossing 2 was canceled.. While the Augusta mall received a multi-million renovation in 2007 and new stores/restaurants continue to open..

The Bon Aire hotel closed a long time ago.. It's the year 2011 and things are much diffrent compared to the past...

Riverman1
79193
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Riverman1 07/16/11 - 11:47 am
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Countyman, not sure what you

Countyman, not sure what you mean there, but we all have to be realists here about the Partridge. The auction is in 2 weeks. There's no way it's going to make money as a hotel. As you said, it's the year 2011 and this is downtown Augusta.

I'm presenting what I see as the best solution to save the building and rejuvenate downtown Augusta, protect Summerville and help our forgotten jewel, ASU. Let's get behind a positive solution and stop denying the hotel went bankrupt.

countyman
19068
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countyman 07/16/11 - 11:54 am
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My comment meant both Mullins

My comment meant both Mullins Crossing and Aiken mall are in danger of becoming Regency Mall before Augusta mall.. The Patridge Inn isn't located in downtown Augusta..

How did you go from repeating Dixeman's comment to a totally diffrent subject? Who is denying the property went into foreclosure?

The whites building went into foreclosure too.. Lennar Corporation purchased the building and they weren't afraid the building couldn't make it as condos...

Riverman1
79193
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Riverman1 07/16/11 - 11:54 am
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Because I understood what

Because I understood what Dixieman meant. You are still tap dancing around that. The demographics of Regency Mall changed before its demise. My friend owns a store in Augusta Mall and she tells me there are absolutely NO UPSCALE shoppers at night.

But since this is about the Partridge, let's not keep spouting how great Augusta is and arguing over downtown v. uptown. Let's come up with realistic ways to save the building and help Augusta at the same time.

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