June 20–A North Carolina investor snagged the top bid for a Newport News hotel.
Robert Horger, an attorney with Orangeburg, South Carolina-based Horger, Barnwell & Reed LLP, confirmed Friday that his client Dilip Mehta secured the final bid of $2.57 million for the Point Plaza Suites and Conference Hotel at 950 J. Clyde Morris Blvd during a Thursday public foreclosure auction.
The property is assessed at $3.97 million, according to Newport News tax records
Mehta must close on the property by July 7 as part of the auction agreement.
Horger said Mehta plans to maintain the site and keep the hotel operational.
Constructed in 1976, the 5.25-acre property includes two, two-story buildings and a four-story building with 150 rooms, a restaurant, an indoor swimming pool, meeting rooms and a ballroom. Mehta will also receive all the hotel’s business property and equipment.
Officials with Richmond-based Kepley Broscious Biggs PLC law firm oversaw the nearly two-hour long auction.
The auction was very competitive — garnering four bids, including a nearly $1.97 million bid from Wells Fargo Bank, the hotel’s primary loan originator.
The Point Plaza is one of multiple Beck Co. hotels that went into foreclosure after defaulting on loans last year.
Beck subsidiary Plaza Hotel and Suites LLC, which formerly owned the hotel missed payments from April to July last year on a $5.45 million loan, according to documents.
Meanwhile, two other hotels face similar foreclosure auctions.
The Mulberry Inn and Holiday Inn Express hotels at 16890 Warwick Blvd. north of Fort Eustis will each be sold in one auction at 11:30 a.m. on June 23, according to a public notice.
