Milwaukee’s Iron Horse Hotel has been acquired by its lender − the culmination of a four-year court battle.
The 100-room hotel, 500 W. Florida St., is now owned by an affiliate of Miami-based Rialto Capital after Milwaukee County Circuit Judge Paul Van Grunsven confirmed the results of a foreclosure auction.
Van Grunsven’s order was issued Sept. 22, with the sale deed filed Sept. 23, according to online court records.
The sale, first reported by BizTimes.com, came three months after a foreclosure judgment was issued against hotel owner Rider Hotel LLC.
The foreclosure suit was filed in 2021 by the Rialto Capital affiliate.
Rider Hotel President Tim Dixon said then the hotel was performing well, but Rialto Capital had refused to allow his firm to use the proceeds of a U.S. Small Business Administration loan. Rialto is the loan servicer.
Rider Hotel filed for Chapter 11 bankruptcy protection in 2022, halting the foreclosure case. Dixon said in 2023 the dispute had been settled, and in October 2024 the bankruptcy case was closed, according to federal court records.
But a forbearance agreement was terminated in March and foreclosure proceedings resumed.
Dixon told the Milwaukee Journal Sentinel on Sept. 25 the Iron Horse was only in default for around 90 days during the pandemic.
He said Rialto aggressively used the lawsuit to acquire the hotel even after it had resumed making loan payments.
Rialto representatives didn’t immediately respond to a request for comment.
The Iron Horse, located near the Harley-Davidson Museum and known for its biker-friendly atmosphere, opened in 2008 within a historic former industrial building that Dixon redeveloped.
Tom Daykin can be emailed at tdaykin@jrn.com and followed on Instagram,Bluesky, X and Facebook.
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This article originally appeared on Milwaukee Journal Sentinel: Milwaukee’s Iron Horse Hotel acquired by lender through foreclosure