The loan had a balance of $ 39.1 million at the time of default, but the total amount currently owed is $ 41.8 million, according to Trepp.
An appraisal completed in February indicated a value of $ 47.4 million, according to data from Trepp. The property is currently valued by the county for $ 12.4 million, down from the 2020 valuation of $ 35.8 million, according to Henry’s online property records.
Despite an abundance of capital-raising deals, it’s unlikely that a bidder will buy the hotel at a foreclosure auction for the outstanding loan balance, let alone appraised value.
The hotel was owned by Shamin Hotels, the largest hotel operator in the region. In December, Shamin agreed to a receiver to take over the property and the court appointed one.
This action only affects the non-recourse loan of the Hilton Richmond Hotel & Spa / Short Pump and none of Shamin’s other hotels. Each property is a separate business entity.
The other underperforming local property is Stony Point Fashion Park in South Richmond.
Starwood Retail Partners, which bought Stony Point and two other shopping centers in 2014, defaulted on the loan in March 2020. It was placed under a new owner in late April of the same year.
The original loan for the three properties was $ 161 million, with $ 127.16 million still in arrears, according to Trepp. The balance of Stony Point’s portion of that loan portfolio was about $ 28.4 million, or about 22.3% of the total amount owed, according to data from Trepp.