Roanoke Times
Copyright (c) 1995, Landmark Communications, Inc.
DATE: SATURDAY, May 8, 1993 TAG: 9305080133
SECTION: BUSINESS PAGE: A-4 EDITION: METRO
SOURCE: GEORGE KEGLEY STAFF WRITER
DATELINE: LENGTH: Short
After months of negotiations, the hotel's owner, Carter Associates, has agreed on terms, "but it's a question of getting everything signed," Robert E. Glenn, lawyer for the hotel, said Friday.
A tentative agreement also has been reached with the Federal Deposit Insurance Corp., which assumed a $2.5 million second mortgage on the hotel as successor to the Merchants Bank of Boston.
When the loan expired last year, Aetna scheduled a foreclosure sale, then postponed it indefinitely to allow time to extend and restructure the loan. The 320-room hotel, one of the largest in the Roanoke Valley, is near Interstate 581 at Hershberger Road.
The lenders want agreement between Carter Associates and Blue Ridge Investment Associates, the general partner that owes $3.5 million plus interest to T.A. Carter, Glenn said. Carter, a Salem developer, heads Carter Associates.
After Aetna began foreclosure, Carter Associates repossessed Blue Ridge's interest.
Blue Ridge syndicated 115 investment units in the hotel to more than 90 limited partners in 1985, shortly after the hotel opened and Blue Ridge acquired its major interest for $25 million.
Hotel sales are running 5 percent ahead of last year, said General Manager Herman Turk.
by CNB