The Claremont Resort and Spa may be headed for the auction block.
The San Francisco Business Times reports that the storied 279-room hotel, an imposing presence overlooking south Berkeley, is caught up in a complicated billion dollar bankruptcy involving Government of Singapore Investment Corp. and the current owners, a partnership between private equity firm Paulson & Co. and Winthrop Realty Trust. The bankruptcy threatens to send the property to auction on Nov. 8., with Nov. 6 as the last day to submit bids.
The current owners acquired the Claremont in January 2011 when the then-owner, Morgan Stanley, defaulted on the loan it had taken out to buy the resort and other hotels. The group restructed the portfolio but was still unable to pay off $1.5 billion in loans, prompting it to file for bankruptcy in February of that year.
The Claremont was put up for sale in May of this year for $80 million, but no new buyer has stepped forward, according to the Business Times (full article behind paywall).
The Claremont Hotel opened in 1915 and has changed hands numerous times. Most of the Claremont sits in Oakland, but a small section sits in Berkeley. The hotel has a Berkeley mailing address.
Related:
Investment group puts Claremont resort up for sale [05.23.12)
Claremont files for bankruptcy, operations unaffected [02.02.11]
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