Trepp LLC released a report in March that suggested loan losseswere continuing to mount this was due in large part to newappraisals on properties transferred to loan servicers. Theoptimism experienced during the CMBS boom has been replaced by morerealism as values are continuing to decline in many markets.
The Westin O'Hare Hotel in Chicago, for example, was originallyvalued at $131 million, but the most recent appraisal came in at$33.9 million, a decline of more than 74%.
Yet lodging is not the only sector seeing massive valuedeclines. Just look at the Tallahassee Mall in Florida, whichposted more than a 79% drop in value. The office sector is alsosuffering. New York City's 119 West 40th St., for instance,experienced a decline of more than 52%.
Continue Reading for Free
Register and gain access to:
- Breaking commercial real estate news and analysis, on-site and via our newsletters and custom alerts
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical coverage of the property casualty insurance and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
*May exclude premium content
Already have an account?
Sign In Now
© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
