Lender Literally Takes Back Property in Bankruptcy Proceedings
In another sign of a weakening economy, Divco West, the owner of downtown’s controversial boutique-style Montgomery Hotel, has turned the property over to its mortgage holder, Gramercy Capital. The lender plans to roll the historic building down to Los Angeles and relocate it near the company’s California headquarters.
Divco West decided to dump the hotel when it couldn’t sell it after three years on the market. “Unfortunately, our city subsidy ran out and they wanted us to operate on the same playing field as the other hotels,” said Stuart Shiff, a partner at Divco West. “That is just outrageous.”
Gramercy Capital confirmed late Thursday that they have taken over ownership and operation of the hotel and will physically move the building sometime in June.
“We plan to use Highway 5 so we can go 65 miles an hour,” said spokesman Michael Nagin. “This will save us considerable time and money.”
When asked if he foresees doing any more business with Divco in the future, Mr. Nagin was quite coy. “We are very proud of our relationship with Divco,” he said. “Our other projects have yielded very sound returns, including the bridge to Brooklyn and swampland in Florida.”
Who is Divco? Will they take it in parts or all in one piece? Is there a spot of land in LA available.
Maybe they should take it over hwy. 17. Just add to the numerous trucks that travel that hwy. during commute hours. Deposit it on the beach by the boardwalk and you’ve got a winner.
For the sake of our precious environment I hope the hotel will be towed to L.A. by a team of two-hundred Toyota Prius’s rather than a fuel-guzzling, smoke-belching big rig (or a dozen evil SUVs).
And wouldn’t it be grand if the hotel were hosting “A Salute to Blanca Alvarado” on the day of the move?
The Montgomery Hotel being moved reminds me of when I was emotionally moved in 1977, hearing the Bee Gees “How Deep Is Your Love”, which reached number 1 on the Billboard Hot 100 on December 24, 1977.
THE COST OF MOVING THE HOTEL AND THE INVESTMENT BY THE CITY, LET ALONE THE DEVELOPERS, WAS OUTRAGEOUS AND DONE ONLY TO SATISFY A VERY SMALL BUT VOCAL GROUP WHO FALSELY SAID THAT THE STRUCTURE WAS AN HISTORIC. I DOUBT THE MONGOMERY IS ON ANY NATIONAL HISTORIC ROLE. IF SAN JOSE KEEPS CATERING TO THESE TYPES OF GROUPS THAT WOULD RATHER WIN SOMETHING OR WOULD RATHER INTIMIDATE ELECTED OFFICIALS (UNIONS,RECALLS,NAMING SPATS,ETC.)THE PUBLIC FUNDS NEEDED TO AID AND PROVIDE TRULY NEEDED BENEFITS AND SERVICES WILL NOT BE AVAILABLE.
I LOVE our finfan!
4 – The Montgomery Hotel is a registered City Landmark. Also, according to the hotel’s website it is also on the National Register of Historic Places. It may also be eligible for other historic listings.
The moving of the hotel was not the idea of a “small but vocal group.” It was the idea of former Mayor Gonzales. The hotel should have remained where it was and be incorporated into the Fairmont annex but the Mayor and Council refused to require that.
Way to go Stuart!
http://www.divcowest.com/success.php?p=0
Maybe this should be removed from the success section of your website.
THE MONTGOMERY HOTEL WAS ADDED TO THE STATE HISTORICAL LISTING IN 2006—-LONG AFTER ITS COSTLY MOVE.