By Adrian Maties, Associate Editor
The Sheraton Norfolk Waterside Hotel, long regarded as one of the city’s top hospitality assets, is headed for a Dec. 20 foreclosure sale, according to a legal notice published Dec. 6 in the Virginian-Pilot.
Phf li Norfolk L.L.C. had previously acquired the 468-key, 10-story hotel for $40 million in Oct. 2006 from Norfolk Hospitality L.L.C. Since then, the property’s value has dropped as low as $31.4 million in 2011, according to city records. In July, the hotel was assessed at $32.1 million.
Property assets listed in the legal notice amount to $197 million. The hotel’s furniture, furnishings, machinery and equipment will also be sold.
Located at 777 Waterside Drive on a 3.4-acre parcel close to the Elizabeth River, the 10-story, 323,520-square-foot property was built in 1976. More than half of the hotel’s guest rooms offer a private balcony with a harbor view. Amenities include 35,000 square feet of meeting and event space, an outdoor pool, health club, lounge and the City Dock Restaurant.
Adjacent to the hotel, the Cordish Cos. plans a $38 million makeover of the Waterside Festival Marketplace into a new entertainment/restaurant venue, Inside Business reports. The Sheraton Norfolk Waterside is near Norfolk Naval Base, Norfolk City Hall, the Norfolk Convention Center, museums and universities.
A public auction is scheduled for Dec. 20 at 1 p.m. at the Norfolk Circuit Courthouse on St. Paul’s Blvd. Prospective bidders may be required to put up a $100,000 deposit. The property will continue to operate during the ownership transition.
Photo credit: www.sheratonnorfolkwaterside.com