ANAHEIM, CA-Analytics firm Trepp LLC reports that the property value behind the $65-million Sheraton Park Hotel here has been reduced, according to January servicer data. The property is a 490-room, full-service hotel in Anaheim's resort district.
The note has been on investors' radar for some time now due to a debt service coverage ratio of 0.22x in 2010 and 0.20x in 2011. According to special-servicer comments in 2012, the “owner [wa]s prepared to facilitate a transfer of the property by way of a deed in lieu of foreclosure or foreclosure.” At the time, the servicer put a $31.6-million appraisal reduction on the loan. This was gradually increased to $33.1 million by December 2013.
This month, the servicer made a bigger move. January data indicates an increase of the appraisal reduction to $38.9 million. At the same time, the property's appraised value was reduced from $40.2 million to $34 million.
The loan makes up 5.05% of the Wachovia Bank Commercial Mortgage Trust, Commercial Mortgage Pass-Through Certificates, Series 2007-C34 deal. The note was slated to mature until 2017, but the asset is listed as REO at this point. The property was built in 1971 and renovated in 2006. It is located within walking distance of Disneyland.
As GlobeSt.com reported in November 2013, The Anaheim resort area is undergoing a minor hotel boom, with four hotel projects currently underway. In total, these hotel projects will account for an additional 722 guest rooms.
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