Two Charleston hotels sell as loans default

Charleston Capitol Hotel

Two hotels in Charleston were sold just prior to their owners defaulting on their loan.

The Charleston Capitol Hotel and the Best Western Plaza Hotel were sold at a trustee sale on the steps of the Kanawha County courthouse to the State Bank of Texas. The Capitol Hotel was purchased for $3.15 million, and the Best Western for $3.85 million. No other bidders participated in the sale.  

The hotels and the land they are located on were sold. Silver Creek Charleston A and Silver Lake Charleston B were the previous owners of the hotels, but they stopped making payments to their lender, the State Bank of Texas.

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The hotels were being managed by CRU Property Management, which shares the same address of both Silver Creek LLCs, and Chris Rader, who is employed by CRU as GM of the hotel, was not told the hotels were being sold or that the companies had defaulted on their loan.

Prior to the sale the Capitol Hotel had $3 million in renovations planned.

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