The Radisson Oakland Airport hotel’s valuation has drastically declined by 70%, dropping from $75 million in January 2018 to just $15 million by October 2024. This significant decrease raises serious concerns about the property’s financial stability.
A recent appraisal indicates that the new valuation covers only about half of the $28.2 million commercial mortgage-backed securities (CMBS) loan’s current exposure. The diminished value places the loan collateralized by the hotel one step closer to foreclosure.
The hotel, situated in the Hegenberger corridor, has struggled amid market conditions that have led to the closure of several businesses in the area. After serving as a temporary shelter during the peak of the pandemic, the hotel resumed normal operations in August 2023, but the future remains uncertain as financial distress looms.
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