Centra CU Repurchases Prominent Riverfront Hotel At Foreclosure Auction
EVANSVILLE, In. – Centra CU, the mortgage holder on the old Riverhouse Hotel, bought back the troubled property Friday at a sheriff’s auction to protect its original investment.
The credit union, which lent the developers of the project, now called River Walk Plaza Hotel & Suites, plans to resell the project on its own.
The property, includes an 83-room hotel, three conference rooms, a beauty salon, a first-floor bar and a top-floor restaurant with panoramic views of the downtown Riverfront. Officials say they believe the property is undervalued because new additions to the Downtown area such as the arena should add to the hotel's appeal.
The hotel was closed in June 2009 after the owners failed to pay utility bills, leading to the building's electricity being cut off.
Centra brought a foreclosure lawsuit against hotel owners for unpaid bills in December, the same month the hotel reopened under its current name.