Radisson Hotel Developer Gets Loan Extension

Radisson Hotel developer Carroll Davis now has until mid-month to renegotiate a $24.5-million construction loan that has been in default since last December.

Davis and his San Diego Diversified Properties were given a 15-day extension by the Federal Savings and Loan Insurance Corp. to seek additional financing for his 13-story, 264-room hotel.

The original loans were made by San Marino Savings & Loan. However, when federal regulators seized control of the troubled company late last year, the loans to Davis were declared to be in default. The federal government now manages those loans.

Foreclosure proceedings were to begin today, but Davis received a last-minute reprieve from regulators and now has 15 days to secure financing. Davis previously received a 30-day foreclosure extension in March.

Nick Sylvester, director of public relations at the Radisson, has said that Davis has financial partners “waiting in the wings” both to complete the loan payments and fund Davis’ oft-delayed plans to build a second Radisson Hotel tower and a nine-story parking garage next door.

If Davis is unable to find financing, he would be out as owner of the hotel, and the government would search for a buyer.