HFZ, however, has not made any of its monthly payments on the loan since June 1, the lawsuit claims. W Financial notified the company that it was in default on July 29 and told it on Aug. 14 that, because it had failed to cure this default, the entire amount of the loan was now due in full, according to court papers.
The REIT is now moving to foreclose on and take control of the properties. Along with the unpaid balance on the $43.6 million loan, HFZ owes W Financial at least more than $1 million in fees, and the REIT should also receive all income and profits from the properties going forward, the lawsuit claims.