In more sad foreclosure news, The Washington Post is reporting that the infamous Watergate Hotel is facing foreclosure unless the lender agrees to new terms with developer Monument Realty. The owners defaulted on a $70 million loan that was due this week.
The 251-room Watergate has actually been closed for five years following its purchase by Monument. However, redevelopment has stalled due to the bankruptcy of Lehman Brothers (a partner and equity investor in the hotel) and the declining real estate market.
"Monument is still committed to the Watergate," Michael J. Darby, a company principal and co-founder, said, according to WP. "We still believe it's a phenomenal asset and will have the potential to be a great hotel in the future."
The Post also reports that lender PB Capital is working with Monument to restructure the loan.
"At the end of the day, it's a landmark," said Kurt Sachs, senior managing director at PB Capital. "The fact is, we have not foreclosed. There are investors with an interest in buying this. The question is, what kind of price are they offering us?"