Two Virginia Hotel Loans Foreshadow Maturity Wave


Trepp Research Director Sean Barrie

WASHINGTON, DC—Two Virginia hotel loans had their appraisals reduced by a significant $21 million total, Treppreports. Both properties are part of a CMBS that originated in 2007 and how these loans will fare until their maturity in June 2017 is unclear.

To be clear, these loans are not anywhere near default right now — but they are part of the long-anticipated $300 billion in debt maturities expected over the next three years. A few years ago there was widespread nervousness about whether the capital markets could handle the influx. Now there is sense of equanimity that most of the debt will be able to recapitalize with no problem. But not all — after all these loans were originated in an era where capital flowed freely and underwriting was on holiday for all intents.

Some version of the story of these two loans, in short, will be told many times over the next few years…

Two Virginia Hotel Loans Foreshadow Maturity Wave

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