The investment fund that owns the Grand Wailea Resort Hotel & Spa is looking to restructure a securitized mortgage covering the Maui property and four other resorts, the Wall Street Journal reported.

The fund managed by Morgan Stanley has suffered a sharp decline in value and the servicer overseeing the $1 billion first mortgage last month transferred it to a special servicing team that handles complicated negotiations with borrowers.

Besides the Grand Wailea, the MSREF V U.S. fund also owns the La Quinta Resort & Club, the Arizona Biltmore Resort & Spa, the Doral Golf Resort & Spa and the Claremont Resort & Spa.

"A recent monthly report issued by the servicer, PNC Financial Services Group Inc.'s Midland Loan Services, noted that the loan was transferred 'due to servicer determination of imminent default,' " the Wall Street Journal article said. Midland and Morgan Stanley declined comment for the report.

The newspaper quoted an unnamed person saying the fund hopes to get revised terms on the mortgage so it can retain the resorts. It said if the fund defaults on the mortgage the special servicer may try to foreclose.

Earlier this year another hotel owned by the fund and a partner, the Maui Prince Hotel, was lost to foreclosure.