Oakworth Capital Bank v. RC Nashville Development Partners (Ritz-Carlton Nashville Foreclosure)
Alabama-based Oakworth Capital Bank sued RC Nashville Development Partners LLC and developer Timothy J. Morris in October 2023 over a defaulted $10 million construction loan tied to a planned 46-story Ritz-Carlton hotel and condominium tower in Nashville's SoBro district; the 1.2-acre site was ultimately sold at a foreclosure auction for $35 million to R Squared Properties LLC of Washington in April 2024.
Why it matters
A real-numbers illustration of how quickly a stalled trophy hospitality/condo development can move from loan default to a completed foreclosure sale — roughly six months from suit to auction here — and of how a single defaulting sponsor's exposure can span multiple markets: Morris separately faced a $5.3 million Oakworth suit over a Washington, D.C. project, plus additional suits from other creditors. Lenders and equity partners underwriting sponsors with multi-market pipelines should look past a single project's collateral value to the sponsor's aggregate, cross-market debt load.
Read the full write-up and case timeline
The complete analysis of this matter, with its procedural history and practical takeaways.
Open the full matterGet an email when a matter like this is filed
Set up a free watchlist for lending & foreclosure matters in Tennessee, or for the tenants, borrowers and guarantors in your portfolio.
Create a watchlistMore lending & foreclosure matters
Other matters in Tennessee
CREdocket summarizes public court records and reporting; see our sourcing standards and corrections log. Not legal advice. Facing something similar? Contact us.