The prestigious Sheraton Norfolk Waterside Hotel in Virginia will be sold at auction on 20th December, according to a legal notice published in the December 6 issue of the Virginian Pilot. The 468-room hotel was acquired by a local company for $40 million in October 2006.
In 2011 the property value had fallen to as low as $31.4 million. Recently the hotel was valued at $32.1 million.
The legal notice lists the property’s assets at $197 million. The hotel furniture, furnishings, equipment and machinery will also be disposed of.
The hotel, which was built in 1976, provides 323,520 square feet of leisure and hospitality space. Over half of the guest rooms have a private balcony offering a view of the harbor. Amenities at the hotel include an outdoor pool, a health club, the City Dock Restaurant, a lounge and 35,000 square feet of meeting rooms and event space.
Plans for a $38 million makeover of the Waterside Festival Marketplace will turn the area, on the banks of the Elizabeth River, into a vibrant leisure district and a prime location for the hotel.
In addition the hotel is located close to Norfolk US Naval Base, the Norfolk Convention Center, Norfolk City Hall and a number of museums and university buildings.
The public auction to dispose of the Sheraton Norfolk Waterside Hotel has been scheduled for December 20, 2012 at 1 p.m. at the Norfolk Circuit Courthouse on St. Paul’s Boulevard.
Prospective buyers should note that they may be required to put up a $100,000 deposit. The hotel, which is regarded as one of the top hospitality assets in the city, will continue to operate during the transition to its new ownership.
In the UK, buying commercial property at auction is popular with investors as it provides the opportunity to acquire properties at prices way below those you might pay purchasing by private treaty.
Another advantage is the rapid transaction time frame. Following the fall of the hammer on a successful bid, the transaction is deemed to be legally binding and completion will follow 28 days later.
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