P
ine & Powell Partners, a Los Angeles-based company led by Michael Rosenfeld, is facing foreclosure on the 400-room Stanford Court Hotel in San Francisco's Nob Hill. Deutsche Bank AG has sued the firm for defaulting on a $105 million loan and failing to make critical repairs to the hotel's elevators before a recent conference. The bank seeks a temporary restraining order to prevent the hotel operator from using rental payments or other revenues for purposes other than paying down the debt.

    The lawsuit alleges that Pine & Powell Partners failed to protect the property, engaged in conduct constituting waste, and frustrated efforts to repair the elevators despite an upcoming professional conference at the hotel. The estimated cost of fixing three nonworking elevators is $60,000. Deutsche Bank also claims it was forced to make $5.3 million in advances to ensure the hotel's continued operations.

    Pine & Powell Partners bought the hotel in 2010 for $26 million, or $65,000 per room. The company has a history of defaulting on loan payments, including a major project in Los Angeles where it defaulted on some $1.8 million in loans tied to the Century Plaza redevelopment. Deutsche Bank and its attorneys declined to comment on the lawsuit, while multiple attempts to contact Rosenfeld were unsuccessful.