The $70 million senior loan is secured by a leasehold mortgage covering the Aston Waikiki Beach Hotel in Honolulu, which is part of a $1.05 billion pool of commercial real estate loans that were securitized and sold to investors as bonds, according to court papers filed today in New York State Supreme Court in Manhattan.
The defendant, Petra CRE CDO 2007-1, which is incorporated in George Town, Grand Cayman, holds a $34.9 million mezzanine loan that is secured by the membership interests in the borrower under the $70 million senior loan, according to the lawsuit.
The mezzanine loan is in default and Petra is scheduled to sell the membership interests on Feb. 15, according to the suit, which is seeking an injunction preventing the sale. U.S. Bank National Association holds the title to the senior loan and is represented in the suit by Wells Fargo Bank NA.
Petra CRE CDO 2007-1 is overseen by Petra Capital Management LLC, the New York-based investment firm led by commercial-mortgage-bond pioneer Andrew Stone.
Stone declined to comment on the lawsuit.
The suit seeks damages to be determined at trial.
The case is U.S. Bank National Association v. Petra CRE CDO 2007-1, Ltd., 650077/2012, New York State Supreme Court (Manhattan).
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