The $26.3 million loan on the Hilton Garden Inn at 3950 Fair Ridge Drive in Fairfax was sent to a special servicer at the end of November after being reported as 30 days delinquent, according to Trepp.
The property had been on the WatchList since returning from special servicing at the end of 2011.
According to new special servicer notes, the borrower will no longer provide the capital necessary to service the loan or meet its debt obligations. The loan is past due from its payment due on November 6.
The note on the 149-room hotel was made current on the eve of its planned foreclosure sale at the beginning of 2011, but the performance of the hotel never bounced back, according to Trepp.
“The loan had taken a $6.8 million appraisal reduction amount on the first default,” writes Trepp. “That reduction was further reduced to $2.7 million and eventually zero earlier this year. A 2010 appraisal valued the property at $26.7 million.”
The owner of the hotel is listed as FAIR OAKS INN LLC. The hotel was originally built in 2002.