Big Oakland hotel is seized by lender as Bay Area lodging market fades
Hotel is an East Bay landmark
The Oakland Marriott City Center hotel was taken back by its lender, which bought the property for just under $70.2 million through the foreclosure. Default Resolution Network, which handled the foreclosure proceeding, provided the results of the transaction.
Invesco CMI Investments filed the default against the hotel. Invesco CMI bought the loan in May 2024 from the original lender, Nataxis New York Branch, according to documents on file with the Alameda County Recorder's Office.
The loan that was foreclosed totaled $100 million, county documents show.
The 500-room lodging tower, which has a choice location at 1001 Broadway next to the city's convention center, is Oakland's largest hotel.
Numerous other hotels in the Bay Area have encountered loan defaults, foreclosures, and a plunge in their value as the region's lodging sector struggles to convalesce from its coronavirus-linked economic maladies.
"We are seeing a downturn in business travel for the Bay Area that is continuing post-COVID," said Alan Reay, president of Atlas Hospitality Group, which tracks the California lodging market. "Business-oriented hotels are struggling."
The $70.2 million price that the lender placed on the hotel through the foreclosure suggests a deep discount from the property's prior values.
In 2017, the hotel was worth $143 million, based on the price that an affiliate of Hong Kong-based Gaw Capital paid to buy the downtown Oakland lodging tower.
This means the hotel's latest value represents a 50.9% price decline from its prior value. Put another way, the hotel's value has been sliced in half.
Plus, the current value of the hotel is about 30% less than the $100 million loan amount.
The hotel's value, based on the foreclosure, is also 49.1% below the current assessed value of $138 million, as determined by the Alameda County Assessor's Office.
A slump in property values can throttle revenue for an array of public agencies.
If real estate values turn soft in a region, the decline could impede a crucial revenue stream for cities, counties, regional agencies, and school districts.
The financial woes that have engulfed the Oakland City Center Marriott are the latest indicator of ailments for the lodging sector. Other setbacks in Oakland include:
— The 162-room Courtyard Oakland Downtown was bought in October 2024 for $10.6 million, a jaw-dropping nosedive of 76% from its prior value.
— The 145-room Waterfront Hotel in Jack London Square shut down without warning in late January.
— The 289-room Radisson Oakland received an appraisal of $15 million in October 2024, according to Morningstar. That was a stunning 70% plunge from the hotel's prior value.
— A 276-room dual-branded hotel at 1431 Jefferson Street in downtown Oakland was taken back by its lender through a streamlined foreclosure process.
"We are seeing a dramatic reset in values for Bay Area hotels," Reay said.
4 comments:
This can be answered with three questions:
Why have hotels without a baseball team?
Why have a baseball team if your city is full of criminal blacks?
Why have a city of criminal blacks?
--GRA
Speaking of baseball,when they introduced the 2025 all stars tonight,I can safely say,I didn't know 80% of them.
--GRA
The rap crap before the game was pure garbage too. Then FOX cameras panned the crowd and I actually saw Whites videotaping that stuff on their cellphone--wasting storage. Some guy called,"The mayor" with absolutely no talent.
The country is doomed.
"Put your hands up," he kept yelling. If nigs remembered that when cops told them those words...but they don't.
--GRA
ALL ESTRALLA(SPANISH FOR STAR)GAME TONIGHT HAD A LOT OF mEX PLAYERS IN IT.
GRA:A good number of Whiteys are in the game,but a lot of mex with so-so averages(.260 to.280)are there as well. One spic pitcher,a Rodriguez,was described as,"unhittable,"by announcer Joe Davis(Joe Buck sound-a-like),before he gave up a three run homer to an A.L. player. At least it wasn't a complete snoozefest.
--GRA
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