An order by a U.S. Bankruptcy Court judge has cleared the way for a lender to foreclose on the Jefferson Building, where work on a planned Staybridge Suites Hotel stalled during the financial downturn.
RL BB Financial LLC had been prevented from foreclosing on the former office building after the developer filed for Chapter 11 bankruptcy protection in August 2010. An order Tuesday by Judge Nancy V. Alquist lifted a stay preventing a sale.
The developer, 101 Charles Street LLC, completed about half the renovations, the order says. The firm had a nonbinding letter of intent from the Intercontinental Hotel Group, a management company for the Staybridge Suites brand, the order says.
But no work has been done since 2009 and the vacant building has been subject to water damage, mold and infestation, the court order says.
The judge said she granted the lien holder's request after finding the developer lacked new investors or a clear plan for the construction or opening of the hotel.
The Jefferson Building is among several downtown hotel projects that stalled when developers ran into financial troubles during the recession.