Bankruptcy Judge Orders Sale of Coronado Resort

To resolve a long legal dispute among partners that developed Loews Coronado Bay Resort, a U.S. Bankruptcy Court judge has ordered the sale of the 440-room property for a minimum bid of $90.5 million.

Patrick Deming of Secured Capital Corp., the West Los Angeles-based real estate investment banking company handling the sale of the property, said that the bankruptcy filing and sale are unrelated to the resort’s business operations.

The sale ordered by Judge Peter W. Bowie is primarily the result of an ongoing legal dispute among local and Japanese entities that developed the property on San Diego’s popular Coronado Island in the early 1990s. Bids are due Dec. 11.

“At the end of the day, we’ll probably see a sales price of between $90.5 million and $95 million,” Deming predicted. Operator Loews Hotels recently completed a renovation of the hotel, which sits on land leased from the Port Authority of San Diego.

“Upscale waterfront hotels in Southern California will always attract a high level of interest, and San Diego is recognized as a leading visitor destination for leisure and group travel,” Deming said. He added that he’s seen particularly strong interest in the property from East Coast-based investment and hospitality companies.