Federal Agency Sells Radisson to Partnership

The 264-room Radisson Hotel in Mission Valley was sold out of foreclosure Thursday for “between $19 million and $20 million” to P&P; Partnership, which consists of hotel owners Arthur Petrie of Minnesota and B.U. Patel of Los Angeles.

The seller was the Federal Savings and Loan Insurance Corp., which took over the hotel last year after the developer, San Diego Diversified Properties, defaulted on more than $30 million in construction loan principal and back interest owed to San Marino Savings & Loan, an insolvent thrift.

The trustee for San Diego Diversified Properties, which is now in Chapter 7 liquidation proceedings, sued former general partner Carrol Davis in U.S. Bankruptcy Court in San Diego last week, alleging Davis and others fraudulently transferred more than $1.4 million in partnership assets for their own benefit.

Petrie, of Mankato, Minn., owns at least four hotels in Virginia, Minnesota and California, said Radisson General Manager Michael Goldstein. Patel owns hotels in Orange County and Los Angeles, Goldstein said.

The average room rate for the Radisson is now in the mid-$70 range, Goldstein said. Occupancy for the year to date is 78%, he said. The 13-story hotel opened in June, 1984.