Park Hotels Stops Payments On $725M Loan, Plans To Hand Back Keys To 2 Hotels

June 5, 2023 / no comments

Two of San Francisco’s largest hotels are headed to their loan servicer after their owner announced it would stop paying the debt.
Park Hotels & Resorts stopped making payments this month on a $725M CMBS loan tied to two of its San Francisco hotels. The Virginia-based real estate investment trust is looking to strengthen its balance sheet and shed the assets in San Francisco as the city continues a moribund recovery from pandemic lows.
The loan is serviced by Wells Fargo, according to CoStar, and is scheduled to mature in November. It backs the 1,921-room Hilton San Francisco Union Square and the 1,024-room Parc…

Banks Look To Shed CRE Loans, Even If That Means Selling At A Discount

June 5, 2023 / no comments

U.S. banks are planning to divest some of their commercial real estate loans — or are already doing so — to reduce their exposure to CRE, even if that means selling loans that are current at a discount, The Financial Times reports.
“The fact that banks want to sell loans is coming up in a lot of conversations,” CoStar analyst Chad Littell told the FT.
Last month, PacWest Bancorp agreed to sell a $2.6B portfolio of construction loans to investor Kennedy-Wilson Holdings. The sale included 74 loans, or more than half of the $4.6B in construction loans the company had on its books…