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223-KEY FULL-SERVICE HOTEL NOTE SALE

RealINSIGHT Marketplace and Mission Capital Advisors are pleased to offer the opportunity to acquire a $33,646,993 non-performing (maturity default) loan secured by a first-lien mortgage on a 223-key full-service hotel in Wilmington, DE.

INVESTMENT HIGHLIGHTS

Value Add Opportunity- The Property has enjoyed stable operating performance since Origination, though occupancy, ADR, and RevPAR have all lagged behind the Hotel’s competitive set due to the increasingly outdated condition along with new supply entering the market.  With updating, investors can raise occupancy, ADR and RevPAR to get in line with and surpass its competitive set.


Foreclosure Initiated and Receiver Appointed - Foreclosure proceedings (complaint filed) were initiated on September 27, 2017 with a Receiver being appointed in October 2017.

Strong Location - Wilmington is undergoing a renaissance as major investment is being pumped into the surrounding market, most notably through the development of a variety of projects in the surrounding neighborhood.

THE OFFERING

The loan was originated on June 6, 2007 in the amount of $36,450,000 for a 120-month term maturing on June 11, 2017.  The purpose of the loan was to fund the acquisition of the subject Property, which serves as Collateral for the Loan. Beginning July 1, 2007, the Loan required fixed interest-only monthly payments of $180,731 for the first 60 months, and then P&I monthly payments of $217,366 for the remainder of the Loan. The Loan’s interest payable is based on a fixed rate of 5.950% per annum and an Actual/360 accrual basis with a 360-month amortization schedule.  The loan is past due for the balloon payment due at maturity.  Foreclosure proceedings were initiated in September 2017 and a Receiver is currently in place.

The 15-story, 229,445 square foot Hotel is located in Wilmington, DE. Constructed in 1989 on a 0.52-acre site, the Property contains 223 guestrooms. The Hotel has operated under the same flag since 1992 and was most recently renovated in 2005 with some additional improvements made between 2011 and 2017. The full-service, upper-upscale hotel features a restaurant and lounge, 7,622 square fee of meeting space, an indoor pool, a fitness room, a lobby workstation, a market pantry, and a guest laundry room.

The Property has excellent visibility, access, and location in downtown Wilmington, Delaware, which is currently undergoing redevelopment and revitalization. It is located in the heart of the corporate financial district within the central business district of Wilmington. Wilmington is located midway between Baltimore and Philadelphia.  Interstate 95 is readily accessible to the Property and connects the region to Philadelphia, New York, and Baltimore. The Property is within walking distance of multiple demand generators including Bank of America, JPMorgan Chase & Company, the Chase Center on the Riverfront, and Riverfront Wilmington. In addition, the Philadelphia International Airport is approximately 17 miles to the northeast of the Property.

 

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Disclaimer: The information being provided herein is for informational purposes only. No representation or warranty is made as to the accuracy or completeness of any information contained herein, including, without limitation, any information regarding the condition of the Property, the condition of title or Property descriptions.

Any documents and/or pictures posted herein or elsewhere on the RealINSIGHT Marketplace, (the "Website") are for informational purposes only, and may not represent the current condition of the Property or the condition of the Property at the time of sale. The posting of pictures herein or elsewhere on the Website does not constitute a guarantee that any items represented in the pictures will be present when the buyer takes possession of the Property.

You are encouraged to conduct your own due diligence and investigate all matters relating to the Property. It is recommended that you seek independent advice, including legal advice, to perform your due diligence and that you use good faith efforts in determining that the content of all information provided to or obtained by you is accurate.

Non-performing Note secured by Hotel in Wilmington, DE

Wilmington, DE

Sold Subject To

Asset Snapshot

  • Asset Type
  • Note
  • Loan Status
  • Non-Performing
  • Original Balance
  • $36,450,000
  • Unpaid Balance (UPB)
  • $33,646,993
  • UPB As Of Date
  • Apr 11, 2018
  • Maturity Date
  • Jun 11, 2018
  • Note Rate
  • 5.95%
  •  
  • Hospitality Type
  • Full Service
  • Property Size
  • 223 Rooms
  • Function Space Area
  • 7,622 Sq Ft
  • Land Area
  • 0.52 Acres
  • Year Built
  • 1989
  • Year Renovated
  • 2005
  • Number of Floors
  • 15
  • Number of Buildings
  • 1
  • Parking Count
  • 125
  • Platform Fee

    Platform fee for this transaction is 5.00% or a minimum of $25,000.