(Bloomberg) — A joint venture tied to a Pacific Investment Management Co. fund surrendered a portfolio of 20 hotels with a $240 million mortgage.
The properties, located in cities including San Antonio and Carmel, Indiana, were forfeited in a deal that closed in September, according to commentary filed this week by the loan’s servicer. The Pimco portfolio, valued at $326 million when the debt was originated in 2017, was cut 16% to $272.8 million in a December appraisal.
Pimco declined to comment.
Commercial property owners are confronting much higher borrowing costs that are weighing on valuations. Wall Street investors including Blackstone Inc. and Brookfield Asset Management Ltd. have defaulted on money-losing properties rather than continue to pay the debt on them.
https://finance.yahoo.com/news/pimco-fund-walks-away-20-202547854.html