HREC Investment Advisors is pleased to announce it has arranged the sale of a non-performing hotel mortgage loan on behalf of a large regional credit union. The loan was secured by a newly constructed hotel asset in the Pacific Northwest. This fast-moving transaction, where the credit union removed the nonperforming note from their hospitality portfolio, transpired in less than a month. The private buyer and the note purchase were part of their Pandemic note purchasing /distressed strategy.
The negotiations were led by Michael Salloway, Vice President in HREC’s Atlanta office. The note was secured by a premium branded extended stay hotel.
“As we near the end of the pandemic, demand remains high for the purchase of both performing and non-performing notes. We have seen many purchasers step up to the plate and become more aggressive with their pricing because as the industry recovers, lenders are become unwilling to issue the large discounts buyers expected at the start of Covid-19,” stated Salloway.
“We have created a specialized hotel note disposition practice that utilizes our national brokerage and mortgage brokerage platforms and our exclusive hotel focus. Our Capital Markets team leverages HREC’s comprehensive network of national, regional, and local hotel investors to provide a competitive loan sale process to ensure successful execution for our lender clients,” stated Mike Armstrong, Principal and Head of Capital Markets.
About HREC®: HREC® is the nation’s leading lodging and gaming real estate advisory firm specializing in property sales, mortgage brokerage, equity/JV structuring, consulting including market studies, and litigation support. With offices throughout North America, HREC® is distinguished by unwavering commitment to client service and success through its team approach, intellectual capital, and hotel/casino specialization.
