The Global Hospitality Group® just hosted a very timely webinar discussing the state of the hotel and CMBS industries. Our program featured senior representatives from Argentic, Greystone, and Situs - three of the largest CMBS special servicers with the most distressed hotel debt - as well as leading data and analytics firm Trepp, HREC s runway capital program, Manhattan Hospitality for hotel industry perspectives, and our own hospitality workouts and receivership expert to break down the current state of the distressed hotels market and CMBS special servicing.
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Clockwise from top left: Brookfield’s Crossroads Center in Minnesota, Mall St. Matthews in Kentucky, Park Place Mall in Arizona and North Point Mall in Georgia. (Credit: Crossroads Center, Mall St. Matthews, Park Place, North Point)
It was a gamble when Brookfield Property Partners paid over $9 billion in cash for GGP’s 125-mall portfolio, but the company had a plan. Shortly after the deal closed in August 2018, Brookfield said it would “future proof” most of those malls, turning moribund properties into mixed-use “mini cities” by adding residential and office space.
The future, it turns out, had other plans.
The yet-to-be-named platform is acquiring the assets and liabilities of Barings Multifamily Capital LLC, pending approvals from federal government-sponsored enterprises.
Reports indicate distressed owners would rather surrender their hotel or retail properties instead of negotiate workouts on delinquent loans as the pandemic spread carries on.