In news from Seguin, Texas, just outside San Antonio, 13 hotel loans are up for auction to the highest bidder. Bidding at Auction.com began yesterday and will continue until 4 PM local time, according to the news. The winning bidders will take ownership of the mortgages attached to the hotels.
The loans, most described as “non performing,” are taken out on hotels which are either behind in payments or currently not in operation. The auction suggests the mortgages may soon go into default. Rick Weinberg, Vice President of Communications at Auction.com, suggested foreclosure is likely following these sales.
One of the hotels listed, America’s Best Value Hotel (image above) has a beginning bid of only $250,000 according to the Auction.com listing. (note: you must “opt in” and sign up) The hotel is a 22572, 48 room offering according to the listing. For more information on this release, click the image above and visit the Auction.com website, or visit this link to their Facebook pages.
As an example of the types of properties in this auction, the hotel above has a mortgage which originated on June 8, 2007 for $1 million. The five year note was issued at 6 percent interest, and was to mature on June 8, 2012. The current balance on the loan is $871,120 on an appraisal of $1.14 million.
For those interested in other commercial values in the San Antonio area, we spotted another America’s Best Value Hotel in the San Antonio area with a starting bid of $350,000. 3645 North Panam Expressway San Antonio (image below) is a 27374 square foot 80 room hotel which appraised for $1.4 million.