HOOTERS Las Vegas hotel purchase by Hedwigs Las Vegas Top Tier, real estate investment group, is still considering the off strip commercial property at $235 million, assumption of debt plus $95 million in cash. Guess what? The tremendous downturn in the credit and mortgage industry has hit this deal hard.
The current mortgage, credit market and bond analysts’ recommendations has Hedwigs Las Vegas Top Tier considering their options for financing. Changes in pricing and numbers changed the overall dynamic of this deal.
Hedwigs is owned jointly with NTH Advisory Group with an unnamed private equity investor.
A year and a half ago, when the property changed from San Remo, it went through a $130 million renovation process.
There has been $1.5 million in deposits towards the purchase of hotel and two amendments to the purchase agreement. The agreement to buy Hooters has been amended twice.
November 15, 2007 is the last day Hedwigs has to pay another $1.5 million and close by Dec. 31 before Hooters could seek outside deals.
Extensions to this deal are very costly at a non refundable $500,000/month fee until June 30.
The second amendment allows Hooters to solicit additional offers and has added to the speculation Hedwigs’ deal might be waning. Source: Review Journal
The buyers are still contending that the deal isn’t dead, rather a waiting game.