A $4.9 million, 10-year mortgage secured with Southington’s Holiday Inn Express hotel has landed in default, according to a commercial loan tracker.
A $4.9 million, 10-year mortgage secured with Southington's Holiday Inn Express hotel has landed in default, according to a commercial loan tracker.
Trepp LLC of New York City says in its latest report that IRNM Fee Southington LLC, the Waterford owner of the 122-room hotel at 120 Laning St., in the shadow of ESPN headquarters, was to make the last of its interest-only payments in July before an August balloon payment to satisfy the outstanding $4.4 million loan balance.
The loan, which was a refinanced mortgage originated through former Wachovia Bank and serviced by Wachovia's successor, Wells Fargo Bank, has been in default since June, according to Trepp's data. The note bears a 6.34 percent interest rate.
Built in 1987, the 36,138-square-foot hotel underwent a renovation in 2001.
When it was last appraised in 2006, the property was valued at $9.4 million, or $77,049 per room, giving a loan-to-value ratio of 51.7 percent. Average daily occupancy for the property through the first three months of 2016 was 50 percent vs. average annual daily occupancy of 65 percent since 2011, Trepp loan data shows.
According to Trepp, master servicer LNR Partners Inc.'s commentary about the loan indicates that the hotel is for sale. LNR could not be reached for comment.
— Gregory Seay
