ATLANTA, Georgia - March 17, 2010 - A junior lender on the W Atlanta-Downtown hotel and condos at Allen Plaza has advertised the posh hotel for foreclosure, but the project’s developer said Wednesday he is in talks to restructure the debt and save his interests in the luxury high-rise.

Hal Barry, CEO of Barry Real Estate Cos., said he is working with his lenders on a restructuring to prevent a forfeiture of the property.

“We’re looking to do a total restructuring that does not involve a foreclosure,” Barry said in an interview with Atlanta Business Chronicle.

“We really do not think there will be a foreclosure,” he said. “We think we can come to terms that are acceptable to everyone.”

On Wednesday, Capri Select Income II LLC, a division of Capri Capital and the mezzanine lender on the project, placed a foreclosure ad in The Wall Street Journal for its piece in the luxury high-rise.

It is anything but a traditional foreclosure proceeding. And the case of the downtown W is anything but a typical distressed building.

The downtown W, a 28-storey mixed-use hotel and condo high-rise at Ivan Allen Boulevard and the Downtown Connector, is caught up in a complicated mess that involves the Federal Deposit Insurance Corp., a failed bank and more than two dozen other lenders all jockeying for repayment.