Lender Moves To Foreclose On Incomplete Hotel In Allen After $9M Loan Default
Lenders have initiated foreclosure proceedings on a partially complete hotel in Allen after its owner defaulted on the property’s $9.2M loan, public records show.
The 81K SF Staybridge Suites under construction at 2283 N. Central Expressway just north of the Allen Premium Outlets is scheduled to be auctioned June 4 in Collin County, according to foreclosure filings.
The borrower, REVA Hospitality Allen LLC, acquired the nearly 2-acre property in March 2017, county records show. A loan was issued by MidFirst Bank in October 2019. The property is valued at $10.7M, according to the Collin Central Appraisal District.
Neither REVA Hospitality nor MidFirst Bank returned Bisnow’s request for comment.
The borrower is linked to two bankruptcy petitions filed April 1 under the limited liability companies REVA Hospitality Wylie and Bhavi Hospitality. Owner Mehul Gareja asked for Chapter 11 protection in order to restructure debt obligations at Holiday Inn Express hotels in Wylie and Forney.
In both cases, attorneys asked the court to allow Gareja to use cash collateral to continue operations at the hotels, noting he had recently undergone surgery and needed an immediate source of funding to keep the hotels open. Both motions were granted.
Gareja also filed for bankruptcy on behalf of REVA Hospitality Garland in 2022, though that case was dismissed shortly after he failed to provide the court with a list of creditors.
Multiple contractors have filed liens against REVA Hospitality, claiming they were not paid for thousands of dollars of electrical, masonry, HVAC and plumbing work on both the Allen and Wylie hotels.
The state of Texas has also filed numerous liens against Bhavi Hospitality for unpaid hotel taxes.
