Citigroup Sells St. Regis Stake
After becoming a public relations nightmare when American International Group had decided to hold a sales conference there, St. Regis Monarch Beach luxury resort finally has a new owner, as Washington Real Estate Holdings was chosen to acquire the controlling stake in the property from Citigroup (NYSE:C).
The hoopla concerning the AIG debacle came after the company received $80 billion in taxpayer dollars to keep afloat, and then made the planned excursion to the luxury resort, which generated outrage from the public.
After the former owners missed payments on a $70 million mezzanine loan, Citigroup seized the property in July of 2009.
Terms of the deal were a $5 million payment for the equity position of Citigroup; $10 million for the part of the mortgage held by Prudential Financial; and Washington Holdings included $55 million for its portion of the $230 million mortgage on the property.
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