Hotels & Hospitality

$22 Million Hospitality Loan Sale – Maturity Default

Stamford, Connecticut United States
Asking Price
Area Size
NOI Net Operating Income N/A
NIY N/A

Attributes

Loan Status Non-Performing
Unpaid Principal Balance
Property Type Hotels & Hospitality,Hospitality

Asset Description

On behalf of a regional bank, Jones Lang LaSalle Americas ("JLL") is pleased to offer for sale a commercial mortgage loan with an unpaid principal balance of $21,999,839 (the "Loan") that matured on March 1, 2022. The Loan is secured by a first-lien mortgage on the fee-simple interest on a 455-key dual-branded hotel located in Stamford, CT (the "Property" or "Collateral").


The Loan was originated September 9, 2015, with an initial advance of $26,200,000. The Loan required interest-only payments based on a fixed 4.00% rate through March 1, 2017. Commencing on April 1, 2017, and continuing through the maturity date, principal and interest payments were payable based on a 300-month amortization schedule. The loan matured on March 1, 2022, and the lender sent a default and reservation of rights letter the next day.


The Property is a 5-story, dual-branded hotel constructed in 1984 on a 7.35-acre site. Upon the borrower's acquisition of the Property in 2009, the Property was operating independently of any brand affiliation. Following extensive renovations, the limited-service portion of the Property reopened in April 2012 while the full-service portion of the Property was subsequently reopened in December 2014. The Property includes a full-service restaurant, an indoor swimming pool, a fitness center, a sundry shop, a business center, and 39,000-sf of meeting space, in addition to an attached 622-space parking garage as well as 7,972-sf of retail space. Currently, the Property is partially unflagged with the borrower recently implementing a new business plan that is showing initial positive results.

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Investment Highlights

  • Maturity Default Loan matured March 1st, 2022 and is now accruing interest at 9.00% post maturity.
  • Re-Branding Potential The full-service portion of the Property is currently unflagged while the license agreement on the limited-service portion expires in April 2022.
  • New Business Plan The Borrower has recently implemented a business plan that has shown initial promise in increasing net operating income.
  • Significant Discount to Replacement Due to rising construction costs, delayed construction schedules, and limited available construction financing, the current loan balance represents a significant discount to replacement cost.
Last Updated Date: 21 Apr 2022

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Last Updated Date: 21 Apr 2022

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