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Thursday, Mar 28, 2024
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Costa Mesa’s Wyndham Hotel in Receivership

The Wyndham Orange County Hotel in Costa Mesa’s arts district is under the control of a court-appointed receiver, according to Superior Court records.

Bank of America Corp. began proceedings against the hotel’s ownership, which goes by Makar Baynorth Costa Mesa LLC, late last month.

Jeffrey Kolessar, a vice president with Philadelphia-based hospitality management company GF Management, was installed as the Wyndham’s receiver, according to court records.

The 238-room Wyndham, located on Avenue of the Arts near South Coast Plaza, was purchased by Newport Beach-based developer Makar Properties LLC in 2006 for a reported $42 million.

The project was initially eyed for a major makeover by the developer, with plans filed to build a 23-story condominium tower while cutting back the number of rooms at the boutique hotel.

With the market for high-rise condos stalled, that plan is in limbo.

It’s the second Orange County hotel of Makar’s that has been taken back by lenders.

In July, ownership of the St. Regis Monarch Beach Resort in Dana Point was turned over to New York-based lender Citigroup Inc. after Makar and its financial partner fell behind on mortgage payments.

Banks and lenders often go through court-appointed receivers who manage or sell an asset, rather than immediately foreclosing.

Receivers,who, once appointed, answer to the court, not the lender,are tasked with protecting and maintaining properties and paying bills.

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Mark Mueller
Mark Mueller
Mark is the Editor-in-Chief of the Orange County Business Journal, one of the premier regional business newspapers in the country. He’s the fifth person to hold the editor’s position in the paper’s long history. He oversees a staff of about 15 people. The OCBJ is considered a must-read for area business executives. The print edition of the paper is the primary source of local news for most of the Business Journal’s subscribers, which includes most of OC’s major corporate and community players. Mark’s been with the paper since 2005, and long served as the real estate reporter for the paper, breaking hundreds of commercial and residential real estate stories. He took on the editor’s position in 2018.
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