Cogent Bank v. Horizon Edge Hospitality LLC (SBA-Backed Foreclosure on Shuttered Rochester Wyndham)
Cogent Bank filed a foreclosure complaint in Monroe County Supreme Court against hotel owner Nayan K. Patel and his entities Horizon Edge Hospitality LLC and Horizon Edge Capital LP, alleging more than $6.3 million owed on an SBA-guaranteed loan and a conventional loan secured by the now-shuttered Wyndham Rochester Downtown. The filing follows a second forbearance agreement that the bank alleges also went into default, and comes weeks after the City of Rochester ordered the hotel closed over fire and building code violations.
Why it matters
Shows how a municipal code-enforcement closure can independently trigger or accelerate a loan default by eliminating a hospitality property's operating revenue, and underscores that SBA guarantees reduce a lender's credit exposure without substituting for ongoing post-closing monitoring of a borrower's maintenance and compliance practices.
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