When a bank is willing to lose money

Posted: under Real Estate.
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By now, we all know that the Fort Myers Clarion Hotel has been sold.
In 2011, the owner, an Indian group, stop the payments on their mortgage and the Bank, the fifth third bank, took over. They hired WALNUT & VINE PROPERTIES I LLC which is the company who use to handle the Fifth Third Bank commercial foreclosures. So far, so good.
WALNUT & VINE PROPERTIES I LLC hired then Janus Hotels Management to manage the property while the foreclosure took place.
The fact that this hotel was foreclosed upon was public domain already and an interest to purchase was born here and there. Personally, I had 2 prospects who were willing to make a letter of intent to purchase the hotel. Both were in the $4 millions range for a 192 rooms hotel with pool, restaurant and tiki bar.
However, I had never received any news, when I was able to contact someone handling the case. A lack of cooperation was evident.
Now, CLARION REDEVELOPMENT GROUP LLC, a company owned by Creighton Development is the proud owner of that property and paid $3,300,000 for it to the bank.
So, it is still not clear why a business focused on making as much money as possible, a BANK, is knowingly willing to pass on $700,000.
Of course, I don’t say my 2 clients would have buy it. But at least, I would imagine the bank to review all offers or all interest that buyers out there may have.
I have seen people willing to earn less money than they could but for a bank, it was my first time :-)

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