With commercial foreclosures on the rise, even high profile properties can be in trouble. Case in point- the Watergate Hotel:
The Watergate Hotel will be auctioned Tuesday, five years after a developer bought it with hopes of restoring it to its glory days as a Washington icon.
Alex Cooper Auctioneers will take bids that morning at the company’s Wisconsin Avenue offices from potential buyers with the capital to invest in one of the city’s most famous buildings in the weakest economy in decades.
The city’s 30-day notice of foreclosure, sent to hotel owner Monument Realty last month after the company defaulted on its loan, expires today. The notice lists an outstanding $40 million balance on the loan. Monument officials said two weeks ago that they hoped the lender, New York-based PB Capital, could agree to new terms before the property across from the Kennedy Center was forced into foreclosure. But apparently new investors did not step forward in time.
The hotel has been shuttered since 2004, when Monument bought it.
Commercial foreclosures are going to get worse before they get better:
The health of commercial properties connected to the retail and leisure and hospitality sectors is inextricably bound to consumer behaviour – and for now, they are continuing to make cutbacks in their discretionary spending.
Given the current state of the economy, any scandals during the current administration would probably have to occur in a Motel 6!
