WASHINGTON, DC-First it was headed to foreclosure auction. And, then it wasn’t, although most observers believed it would eventually wind up there. Sure enough, Barclays Capital quietly foreclosed on the iconic luxury hotel earlier this month, scooping up the $25-million mezzanine piece. Claret Capital, a private equity firm in Ireland, purchased the hotel at the height of the market in 2007 for $170 million.
The St. Regis in Washington is being marketed as Barclays prepares to bring a number of other loans and properties to market, some of which are performing, others of which are in distress.
Other properties going on the block include the Fairmont Orchid Hawaii, Stanford Court in San Francisco and the Four Seasons in Vail, CO. Barclays Capital declined to comment to GlobeSt.com.
A 182-key hotel two blocks from the White House, the hotel is expected to trade based on its trophy status--not necessarily its recent cash flow--a source in the industry tells GlobeSt.com. "This will be an ego buy," this person predicts, estimating it will trade anywhere in the range of high $90 million to low $100 million.
Recent hotel trades in the DC area include The Madison Hotel, which along with a connected 95,000-square-foot office building, sold for $123 million and the Hotel Monaco, which priced at $74 million.
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Erika Morphy
Erika Morphy has been writing about commercial real estate at GlobeSt.com for more than ten years, covering the capital markets, the Mid-Atlantic region and national topics. She's a nerd so favorite examples of the former include accounting standards, Basel III and what Congress is brewing.
