advertisement

Lisle hotel facing foreclosure

The Hilton Lisle/Naperville - one of DuPage County's largest hotels - is facing foreclosure after the property's owner failed to pay a loan that recently came due, according to a lawsuit.

U.S. National Bank Association has filed the foreclosure lawsuit against Fireside West of Delaware LLC, which owns the 309-room hotel in Lisle.

Fireside borrowed $40.5 million in May 2006 and promised to repay the debt by June 1 of this year, according to the lawsuit. But starting in February, Fireside stopped making its required monthly payments.

The plaintiff in the lawsuit is a national banking association acting as trustee for a commercial mortgage-backed security holding trust, according to the suit. It is the lender under the loan and the holder of the note.

U.S. National Bank Association says it's owed more than $36.7 million. That figure includes an unpaid principal balance of more than $35.8 million, roughly $880,000 in interest and about $12,600 in late charges.

The bank is asking a DuPage judge to award that amount as well as legal fees. In addition, it's requesting the hotel be sold "as directed by the court" to satisfy the amount due.

One of the attorneys representing the plaintiff declined to comment about the lawsuit on Monday.

An attorney for Fireside West didn't return a phone message. The general manager of the Hilton Lisle/Naperville also didn't return calls.

Lisle Mayor Joseph Broda said he wasn't concerned about the hotel's future.

"The hotel is one of our profitable hotels," Broda said. "I don't see it going anywhere."

Lisle officials are planning to meet Tuesday with representatives of the hotel. Previously, the hotel's management has told the village that the business is on "extremely solid" financial ground, Broda said. The owner has several hotels, including one in Northbrook.

Even if the Lisle hotel is sold, Broda says he is confident it will remain open.

"I don't think this is an issue that we have to worry about," he said.

Article Comments
Guidelines: Keep it civil and on topic; no profanity, vulgarity, slurs or personal attacks. People who harass others or joke about tragedies will be blocked. If a comment violates these standards or our terms of service, click the "flag" link in the lower-right corner of the comment box. To find our more, read our FAQ.