Wall Street Journal
Real Estate Deal of the Week
In Motown, a Hotel Project Hits a Sour Note
Few cities have been hit harder by the recession than Detroit, and few property types have suffered more than hotels.
So the odds were stacked against an effort to revive the city's Hotel St. Regis by a group of investors, some with ties to Motown's recording industry. Indeed, that effort has fizzled.
The group, led by Detroit entrepreneur Herb Strather, defaulted on its $8.7 million construction-and-mortgage loan made by Chicago-based ShoreBank, which provides loans in inner cities and underserved communities. The 124-room hotel has received shutoff notices from utilities, has failed to pay taxes and insurance and has missed some ...