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Full-Service Hotel in Falls Church, VA
Full-Service Hotel in Falls Church, VA
Description
The collateral was comprised of a 405-room upscale hotel located in Tysons Corner, VA (suburban Washington, DC).
The loan transferred to special servicing in June 2014 due to imminent default. After the transfer, the borrower failed to make the July debt service payment placing the loan into monetary default. The Trust appointed a Receiver in January 2015 and foreclosed upon the asset in June 2015.
The REO Was Sold For $62 Million
In February 2018
Scope of Work
At foreclosure, the property had not been renovated for approximately 10 years and the franchisor mandated a Property Improvement Plan (PIP) in order for the Trust to maintain the license agreement term through 2025, to improve guest satisfaction scores and to increase profitability.
Subsequent to the receivership, CWCAM effectuated a major $7.9 million renovation that touched most areas of the asset including guestrooms, guest baths, corridors, restaurant/lounge, meeting space, and expansion of the fitness center. CWCAM was able to work around the property’s busy periods, minimizing displacement of business, and completed the renovation in July 2016 to the satisfaction of both the franchisor and the guests.
CWCAM also oversaw the implementation of parking gates, together with the installation of cell towers on the hotel’s roof, which generated close to $300,000 of incremental revenues straight to the bottom line.
Resolution
CWCAM was able to increase NCF from $4.06 million for year-end 2014 to $4.84 million for year-end 2017.
The REO was sold for $62 million in February 2018.