A hotel owner is attempting to turn over the keys to the Homewood Suites Troy after falling behind on its $16 million loan.
That's according to New York City-based Trepp LLC, which analyzes commercial mortgage-backed securities data. The 150-room hotel completed in 2002 is at 1495 Equity Drive south of Maple Road and east of Coolidge Highway.
The hotel industry has been one of the worst-hit in commercial real estate as the COVID-19 pandemic continues to rage across the country. Stay-home orders and overall unease over travel have hit the hospitality industry particularly hard, and research from Trepp at the beginning of the pandemic that has killed more than 126,000 deaths in the U.S. said there is $86 billion in hotel CMBS debt that is at risk. According to Trepp, there are 52 loans on hotel properties around the region totaling nearly $618.9 million.
I left a message with the Cleveland-based ownership group of the Homewood Suites Troy, MEI Hotels Inc., but received no response. The company owes $15.1 million on the JPMorgan Chase loan that was originated in 2016 and matures in October 2026, according to Trepp.
Trepp says MEI Hotels requested a deed in lieu of foreclosure of its lender before debt service relief could be granted after MEI sought it. The deed in lieu would erase the loan in exchange for title to the property.
Data from Trepp says revenue at the hotel has fallen yearly from $6 million to $5.87 million to $5.58 million from 2017 to 2019. From April 2019 through March 2020, it pulled in $5.23 million. Likewise, net operating income fell from $2.2 million in 2017 to $2 million in 2018 to $1.8 million in 2019, with April 2019 to March 2020 NOI at $1.56 million.
A 2016 appraisal pegs the property at a $22.4 million market value.
More than 4 acres of east Detroit riverfront property is listed for sale.
The site, a surface parking lot totaling 4.32 acres at 2680 Atwater St. and 127 Joseph Campau, does not have a listing price.
It is being marketed by the Southfield office of CBRE Inc., which declined comment.
The site, owned by a trust tied to the Stroh family, is next to the $200 million, 25-acre Stroh River Place project that includes offices and apartments.
The property might make for a good multifamily play on the east riverfront, which has seen a good amount of developer interest the last several years.
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Real Estate Insider: Troy hotel owner tries to give lender the keys - Crain's Detroit Business
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