Foreclosed Nonperforming Pennsylvania Hotel Sold for $4 Million
DelShah Capital, a real estate acquisition, development and management company that owns and operates multifamily and commercial properties in New York, sold a foreclosed Pennsylvania hotel for $4 million.
Omega Hospitality acquired the 78-room Hampton Inn Hotel by Hilton in Leighton, Pa.
The purchase of the foreclosed property and its subsequent profitable sale is an example of DelShah’s ability in identifying distressed assets, completing foreclosure litigation and then repositioning the asset towards a profitable exit.
Features of the hotel include an indoor pool, whirlpool and fitness center. The surrounding location near the hotel has many recreational areas such as the Poconos and Jim Thorpe historical attractions that draw families and vacationers to the city.
“While this asset was outside of our geographic sandbox, the mortgage was sold to us by one of our very good bank relationships, and when they offered to finance our note purchase, it became impossible to say no,” said Michael Shah, principal and CEO of DelShah Capital, which specializes in the purchase and foreclosure of nonperforming commercial mortgages. “We knew the intrinsic value was there, and we were skilled enough in the foreclosure process to know we could get to the asset in a fairly short period of time. There are many other great opportunities that we are researching and analyzing at this time.”