Little Rock Hotel's $17.2M Foreclosure Sale Set for June

Little Rock Hotel's $17.2M Foreclosure Sale Set for June
A Google Street View image of the Hampton Inn & Suites at 320 River Market Avenue in downtown Little Rock (© Google)

(A correction has been made to this article. See below.)

A foreclosure sale of the Little Rock downtown Hampton Inn & Suites is set for noon on June 9 at the Pulaski County Courthouse.

A Pulaski County Circuit Court judge entered a $17.2 million judgment last month against the property for the purposes of selling the building. The judgment wasn't against the hotel's owner, MHG Little Rock HN LP of Gainesville, Georgia, or McKibbon Hotel Group Inc. of Tampa, Florida. McKibbon owns MHG and guaranteed the loan.

The lender, RSS COMM2013-LC13 - AR MLRH, LLC, filed the foreclosure lawsuit in November in Pulaski County Circuit Court. Rialto Capital of Miami is managing the LLC.

The foreclosure is tied to the original 2013 mortgage of $15.6 million that passed from Regions Bank of Birmingham, Alabama, to German American Capital Corp. to the mortgage portfolio for which U.S. Bank of Minneapolis was the trustee.

The eight-story, 119-room Hampton Inn & Suites opened in 2008 at 320 River Market Ave. It’s one of several downtown hotels developed by McKibbon Group.

Others include the 120-room Marriott Courtyard, opened in 2004 at 521 President Clinton Ave., the 107-room Residence Inn, opened in 2013 at 219 River Market Ave. and the 116-room Homewood Suites by Hilton, opened in 2015 at 400 River Market Ave.

In the complaint, the lender said that the borrower failed to make payments between April 6, 2020, and June 6, 2021, which was during the early stages of the COVID-19 pandemic. The lawsuit said the borrower defaulted on terms of the loan by closing the hotel and shifting customers to another hotel owned by the Hampton’s owner between April and July 2020.

Both sides agreed in April to a consent judgment of $17.18 million owed as of Feb. 22, with $13.46 million for unpaid principal balance. The interest charges total $2.6 million. If there is a deficiency after the building is sold, litigation will continue over the deficiency amount. 

Attorney Chris Ezell of Jones Walker of Mobile, Alabama, who is representing the lender, didn’t immediately return a call for comment Monday. Geoffrey Treece of Quattlebaum Grooms & Tull of Little Rock, who is representing the defendants, declined to comment.

George Waldon contributed to this story.

(An earlier verson of this article misstated who the judgment was against.)