banner
Business

Raleigh hotel sold for $1.5M at auction

Posted December 15, 2010

Map Marker  Find News Near Me

— The Capital Plaza Hotel in north Raleigh sold at auction for $1.5 million on Wednesday morning.

The price was significantly less than its $5 million assessed value, but the current owners were eager to sell the property.

The hotel, at 2815 Capital Blvd., just north of Interstate 440, opened in the 1970s as a Holiday Inn.

In the past 30 years, it has seen several different owners and names.

Under owners Govind Chandak and Sanjay Mundra, the property became a Doubletree Hotel before closing its doors in 2000.

In 2004, it reopened after a $1 million renovation as the Hotel Europa. Less than a year later, the hotel closed after Chandak sued the hotel manager for thousands of dollars in unpaid rent. The manager later pleaded guilty to tax evasion charges.

Accredited Medical purchased the property for $6 million in early 2006, with money borrowed from National Financial Lending, Wake County property records show.

After signing a licensing agreement with Ramada Worldwide, the California-based group had plans to renovate the hotel. Those plans were scrapped after Accredited Medical filed for bankruptcy in 2007 and closed the hotel.

Bill Brar new owner of Capital Plaza Hotel Raleigh hotel sells at auction

The hotel was foreclosed on and purchased by National Financial Lending for $8.2 million at a public auction in May 2007. It has remained closed since.

On Wednesday, the building was filled with broken glass, graffiti and torn pages from the Bible.

The security company that monitors the hotel said it has become a haven for vagrants, vandalism and other illegal activity. New owner Bill Brar said he hopes to change that.

"It'll be far better than any hotel in the area. That, I can promise," he said. 

Brar, who also manages a Doubletree Hotel in Fayetteville, said he hopes to open up a state-of-the-art hotel within a year. 

Nearby businesses hope Brar can make the hotel a success. 

"We need more business. The area has been in shambles for the last four years," said Frank Haidar, owner of nearby Warp Computers. 

In the past, Haidar said when business has been good for the hotel, it was also good for him. 

"If it is successful that means more people will come to it and more people come to us," he said. 

23 Comments

This story is closed for comments.

Oldest First
View all
  • newpine Dec 16, 2010

    We also live near this area. We have lived here for 23 years. We haven't found the location to be "Rough" or "Scary". "Convenient" is the best word to describe it. And if you knew the area, you would know there is a Starbucks 2 blocks north of the hotel. Some of your impressions are not supported by reality. But like shortcake53, I would prefer you keep on driving. Slow down maybe, but don't stop.

  • shortcake53 Dec 16, 2010

    We live near this area, in a VERY nice neighborhood. I remember when this was a Holiday Inn many years ago, with a fabulous pool in the lobby and a wonderful buffet brunch on the weekends.
    I am glad to see someone is going to do something with this property, it has been an eyesore for a long time. As for those who are afraid to come to this area, good. Less traffic for us who live here to have to deal with. We have good shopping around us and some very nice restaurants too. Those who call it a run down area must be the ones who zoom by at 85 mph. Those are the ones making it dangerous.

  • In the Clover Dec 15, 2010

    The reason that hotel has not made it in the past is due to poor management, not location. If the new owner succeeds in running a successful hotel it will be a shot in the arm for the area. Improvement comes one step at a time.

  • davidgnews Dec 15, 2010

    " "It'll be far better than any hotel in the area. That, I can promise," he said. "

    What 'area,' Capitol Blvd. or RTP ? I want to see a hotel in that neighborhood compete with something upscale like the Umstead.

    That's an ambitious plan for such a rough section of town.

  • dragonslayer Dec 15, 2010

    If I'm not mistaken that place was closed by the health department for mold or something in the HVAC system.

  • keeprightexcepttopass Dec 15, 2010

    A hotel is just not gonna survive in that part of town (as we've witnessed with new owner after new owner). I understand there might be some nicer neighborhoods here and there, but as a whole, that area of Capital is worn-out, dirty and kinda scary at night. : (

  • In the Clover Dec 15, 2010

    yachtguychris stated:
    "I predict the rooms will rent by the hour, fitting for that area of Capital Blvd."

    I live not too far from this hotel. There are some very nice neighborhoods in this area that have housese much better built than a lot of the cheap garbage that has been built in Raleigh in the past 10 years. And, these older neighborhoods are still affordable and within reach of the average home buyer. The comment by yachtguychris is an ignorant, cheap shot.

  • lizard Dec 15, 2010

    All ya'll that want to turn the property into a charity location, why didn't you buy it and do it yourselves? How come you have all these magnanimous ideas for other peoples money?

    I hope he charges $500 per room per night and retires in three years, personally. (And I hope he doesn't pay a cent in taxes.)

  • ncguy Dec 15, 2010

    turn it into condos etc...

    There are too many hotel rooms in raleigh durham rtp area anyway.

  • MyOwnTwoCents Dec 15, 2010

    I dont think it can survive being another hotel. I would make it a boys/girls club to get the area better, and give something for the kids to do and get them off the streets.

More...