Commercial Real Estate Direct Staff Report
The owner of the Doubletree by Hilton at JFK Airport in New York has filed a lawsuit to stop Hilton Hotels Corp. from revoking the property's Doubletree franchise agreement.
The property backs a $35 million mortgage that was securitized through JPMorgan Chase Commercial Mortgage Securities Trust, 2012-CIBX. It was transferred to special servicer Midland Loan Services earlier this month when Hilton said it would cancel the franchise agreement.
Vista Hospitality Group claims in its lawsuit that CIBX Commercial Mortgage, a venture of CIBC World Markets and Blackstone Group that provided the loan, was complicit in yanking the hotel's franchise agreement. CIBX holds the B-piece, or subordinate bonds, of the CMBS transaction. Blackstone, meanwhile, owns Hilton Hotels Corp., and Vista claims the New York investment manager would like to take over the property.
The suit, filed in New York State...