5th Avenue Partners LLC, the Newport Beach-based owner of the Sè San Diego Hotel and a nearby building that holds San Diego’s House of Blues music club, has filed for bankruptcy protection.
The company filed for Chapter 11 reorganization last week in the Santa Ana division of the bankruptcy court.
5th Avenue’s filing prevented the company’s main lender, Germany’s WestLB AB Bank, from appointing a receiver to take over the company’s assets. That move had been expected early this week.
WestLB AB Bank was owed $67 million by 5th Avenue Partners at the time of the filing, according to court documents.
Then Newport Beach-based company, led by developer Steven Rebeil, said it had between $10 million and $50 million in assets at the time of the filing, according to the bankruptcy petition.
The Sè San Diego Hotel opened in late 2008 amid a brutal market for the hospitality industry. The boutique hotel counts 184 hotel rooms and 23 unsold condominiums.
Next door to the hotel is a 31,000-square-foot building which 5th Avenue Partners owns and rents to House of Blues San Diego LLC. The two companies split profits generated at the music club.