News Summary
The Iron Horse Hotel in Milwaukee is now facing foreclosure proceedings after a court ruling dismissed its bankruptcy case. Owner Tim Dixon’s financial struggles, exacerbated by the COVID-19 pandemic, led to a foreclosure judgment against his establishment, with over $26 million owed to the lender. The hotel, which has been a staple in the local hospitality sector since 2008, is awaiting a potential sheriff’s auction and the outcomes of ongoing proceedings.
Milwaukee Hotel Faces Foreclosure as Bankruptcy Case Dismissed
The Iron Horse Hotel in Milwaukee, located at 500 W. Florida St., is now facing foreclosure proceedings after a recent court ruling. The lender initiated a foreclosure lawsuit against the hotel in 2021, citing ongoing financial troubles that intensified due to the COVID-19 pandemic.
Tim Dixon, the owner of the Iron Horse Hotel, filed for Chapter 11 bankruptcy reorganization in 2022 in an attempt to address the financial issues facing his establishment. A forbearance agreement was reached between Dixon’s Rider Hotel LLC and the lender, allowing the lender to seek a foreclosure judgment if certain conditions, known as a “triggering event,” took place.
Recently, a foreclosure judgment was filed, setting the stage for a potential sale of the property. As of May 6, Rider Hotel LLC owed the lender a staggering $26.3 million.
Hotel Features and Offerings
The Iron Horse Hotel boasts 100 rooms and opened its doors in 2008. Its name draws inspiration from the nearby railroad tracks and the renowned Harley-Davidson Museum, which attracts motorcycle enthusiasts. In addition to accommodations, the hotel houses three public-facing restaurants and bars: Branded, Ash Heart and Bar, and The Yard.
Property Details
The hotel is situated within a six-story building that originally dates back to 1907. However, the future remains uncertain as a sheriff’s auction for the property has not yet been scheduled. Following a failed auction in 2023, Dixon agreed to bring the loan back into good standing by February, yet he did not manage to refinance it.
Reactivation of Foreclosure Case
In March, Miami-based loan servicer Rialto Capital reactivated the foreclosure case and requested a receiver to take over hotel operations. Subsequently, Crescent Hotels and Resorts received court approval to manage the hotel’s operations after the foreclosure judgment was established.
Context of the Foreclosure
This situation marks a significant turnaround for the Iron Horse Hotel, which has been a prominent establishment in Milwaukee’s hospitality sector since its inception. The challenges imposed by the pandemic have had a lasting impact on many businesses, particularly in the hospitality industry, and have led to heightened scrutiny of their financial stability.
The Iron Horse Hotel’s struggles reflect broader trends observed in the industry, highlighting the challenges faced by many hotel owners struggling to rebound from the financial setbacks caused by the pandemic.
As the matter progresses, the hospital community and stakeholders await further developments regarding the foreclosure proceedings and the future of the Iron Horse Hotel.
Deeper Dive: News & Info About This Topic
HERE Resources
Milwaukee Art Museum’s Chief Experience Officer to Depart
Transformations in Milwaukee’s Restaurant Scene
Milwaukee Public Market Celebrates 20 Years of Success
Milwaukee Art Museum Raises $1.2 Million at Gala
Iron Horse Hotel Acquired by Lender Amid Foreclosure Proceedings
Iron Horse Hotel in Milwaukee Acquired by Lender for $15.75 Million
Additional Resources
- TMJ4: Milwaukee’s Iron Horse Hotel Faces Foreclosure Again
- Urban Milwaukee: Iron Horse Hotel Faces Sheriff’s Auction
- WISN: Milwaukee Housing Authority Misused Funds
- Fox6Now: Milwaukee Housing Authority HUD Recovery Plan
- JSON: Bay Views Milwaukee Forge Files for Receivership
- Wikipedia: Hotel
- Google Search: Milwaukee hotel bankruptcy
- Google Scholar: Milwaukee hotel foreclosure
- Encyclopedia Britannica: Hotel Management
- Google News: Milwaukee Housing Authority
Author: STAFF HERE MILWAUKEE WRITER
MILWAUKEE STAFF WRITER The MILWAUKEE STAFF WRITER represents the experienced team at HEREMilwaukee.com, your go-to source for actionable local news and information in Milwaukee, Milwaukee County, and beyond. Specializing in "news you can use," we cover essential topics like product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the area—with deep expertise drawn from years of dedicated reporting and strong community input, including local press releases and business updates. We deliver top reporting on high-value events such as Summerfest, Milwaukee Film Festival, and the Milwaukee Boat Show. Our coverage extends to key organizations like the Metropolitan Milwaukee Association of Commerce and Visit Milwaukee, plus leading businesses in manufacturing and brewing that power the local economy such as Harley-Davidson and MillerCoors. As part of the broader HERE network, we provide comprehensive, credible insights into Wisconsin's dynamic landscape.
