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.
