Marcus & Millichap Sells 3-Star RV Resort in Anaheim, CA for $10M

ANAHEIM, CA – Marcus & Millichap Real Estate Investment Services, the nation’s largest real estate investment services firm, has arranged the sale of Anaheim RV Village, (top left photo) a 293-site, three-star RV Resort in Anaheim.

The sales price of $10 million included the 1.66-acre commercial corner at the intersection of Ball Road and Harbor Boulevard.

The park sold at a land value of $20.94 per square foot and a cost per site of $31,083 net of the commercial land value.

Douglas Danny, vice president investments and a senior director of the firm’s National Manufactured Home Communities Group in San Diego, represented the seller, WB Parc Anaheim LLC. The buyer was represented by Don Nourse of CB Richard Ellis.

“Anaheim RV Village has tremendous cash flow potential with operational repositioning,” says Danny. “The existing RV resort rental business was systematically curtailed to facilitate redevelopment of the site into multi-residential use. The current RV park occupancy has been at 25 percent since May of 2007.

The new owner, The Mother Colony Group LLC, intends to focus on annual rentals,” adds Danny.

Anaheim RV Village is comprised of 9.27 acres containing 274 RV lots with drains, 19 campsites with a full amenity package and a signal-controlled commercial corner with two retail rental units.

The listing attracted multiple offers from both developers and operators. The property was widely marketed for 180 days and was in escrow for a total of 60 days. This was an all-cash transaction.

Press Contact: Stacey Corso, Communications Department, (925) 953-1716

Chick-Fil-A Leases Former Road House Grill for 25 Years

Orlando, Florida – July 7, 2009 – The Orlando office of CB Richard Ellis is pleased to announce, Jorge Rodriguez, CCIM, Senior Associate in Retail Properties, has secured a lease for the landlord Pineloch Management Company, at the former Road House Grill, located at Michigan and Orange Avenues. The 25-year lease is for a Chick-Fil-A store.

Currently, the Road House Grill building has been demolished and Chick-Fil-A is projecting an opening of mid-October 2009.

Contact: Angelique Greven,407.839.3158, angelique.greven@cbre.com

Stirling Sotheby’s International Realty to Host Auction of 27 Luxury Condominiums in Metro Orlando

ORLANDO, FL--- Stirling Sotheby’s International Realty, partnering with Worldwide Auction Realty Services, will conduct an auction Saturday Aug. 1 to sell 27 remaining condominium, residences at Artisan Park, a luxury community of over 300 new condominium homes located at Celebration in Osceola County.

Roger Soderstrom, founder and owner of Stirling Sotheby’s International Realty, said the auction is scheduled to begin at 10 a.m. at the Celebration Hotel.
(top right photo)

Condominiums to be auctioned were formerly listed for sale at prices ranging from $480,000 to $600,000. Suggested opening bids have been set at $95,000, Soderstrom said.

Many of the condominiums to be auctioned feature waterfront settings, Soderstrom said. Artisan Park features a community clubhouse with a swimming pool, cabana, restaurants and other amenities. A brochure can be downloaded and property photos viewed online by visiting http://www.auctionatcelebration.com/

Prospective bidders are being invited to register and participate in the auction in person at Artisan Park, by telephone at 800.327.1048, or World Wide Auction Realty Services will accept bids online at (http://www.auctionatcelebration.com/).


For more information, please contact:
Jon or Lori Chipps, World Wide Auction Realty Services 800.327.1048; http://www.stirlingsir.com/;

Larry Vershel or Beth Payan, Larry Vershel Communications, 407.644.4142

Lodgian Provides Further Update on Remaining Maturing Mortgage Debt

ATLANTA, Ga., July 7, 2009 – Lodgian, Inc. (NYSE Alternext US:LGN), one of the nation’s largest independent hotel owners and operators, today announced that the company has obtained an extension of the maturity date for the Merrill Lynch Fixed Rate Pool #3 (“Pool #3”).

As of July 1, 2009, the principal amount of Pool #3 was $45.7 million. The company and the special servicer for Pool #3 have entered into an extension agreement to extend the maturity date of this indebtedness until August 1, 2009. Given the extension of the maturity date, the company is not in default of the original loan. The company paid no extension fee in connection with this short-term extension.

The 30-day extension is intended to provide the parties an opportunity to reach an agreement on a longer-term maturity extension.

The company and the special servicer are currently negotiating a longer-term maturity extension for Pool #3; however, the company can provide no assurances that the parties will reach such an agreement.

In the event that the company is unable to achieve a long-term extension of Pool #3, the company expects that anticipated cash flow from the hotels securing Pool #3 may not be sufficient to meet the related debt service obligations and it may be necessary to transfer the properties securing this indebtedness to the lender in satisfaction of the company’s obligations.

Contact: Debi Ethridge, Vice President, Finance & Investor Relations, mailto:Relationsdethridge@lodgian.com(404) 365-2719

Marcus & Millichap Sells $12.48M Apartment Complex in Falls Township, PA

FALLS TOWNSHIP, PA, July 6, 2009 – Marcus & Millichap Real Estate Investment Services, the nation’s largest real estate investment services firm, has arranged the sale of Newport Village, (top left photo) a 182-unit garden-style apartment complex in Falls Township.

The sales price of $12.48 million represents $68,571 per unit and $103 per square foot.

Ridge MacLaren, Jr., vice president investments and a senior director of the firm’s National Multi Housing Group, along with multi-family investment specialists Clarke Talone and Andrew Townsend, in the Philadelphia office, represented the seller, Newport Village Associates LP. Marcus & Millichap also procured the buyer, NV Partners LP.

“Despite a challenging environment in real estate right now, the buyer was able to look past the rhetoric and focus on the long-term fundamentals of the property,” says MacLaren. “We had tremendous interest during our marketing campaign for this asset.

"There were more than 10 offers, but the buyer stepped up with an aggressive financing package through Fannie Mae. Despite ongoing negative economic reports, the buyer and seller were able to complete this transaction smoothly and efficiently,” adds MacLaren.

Located on nine acres at 8590 New Falls Road in Falls Township, the 120,624-square foot property is conveniently located in Lower Bucks County, just off Interstate 95 and the Pennsylvania and New Jersey turnpikes, providing easy access to Philadelphia, New York City and Trenton, N.J.

“Despite the negative press, this is a good time for buyers and sellers of multi-family properties,” remarks Talone.

“For assets with stabilized operations and strong occupancy levels, Fannie Mae and Freddie Mac are quoting non-recourse loans at 75 percent to 80 percent loan-to-value with interest rates of approximately 6 percent.

"At these rates, buyers are still willing to complete transactions in this marketplace. Buyers with a longer hold strategy are going to see solid returns because of the attractive debt and cap rates,” he adds.

Press Contact: Stacey Corso, Communications Department, (925) 953-1716

Veteran Self-Storage Executives Launch Davies Ingersoll Capital Partners

Company Provides Capital Market and Investment Advisory Solutions To Self Storage Industry

NEWPORT BEACH, CA, July 6, 2009 – Jim Davies, (top right photo) one of the nation’s leading finance experts in the self storage industry, and Peter Ingersoll, (top left photo) a premier self storage investment broker, have joined forces to launch Davies Ingersoll Capital Partners, a national firm providing debt and equity solutions to commercial real estate and self storage operators and investment opportunities to sophisticated investors throughout the United States.

Joining Jim Davies and Peter Ingersoll as a corporate officer is Ricki Ingersoll.

Davies Ingersoll Capital Partners is located at 5000 Birch Street, Suite 3000 in Newport Beach, Calif.

Davies Ingersoll Capital Partners offers complete capital stack solutions including debt, equity and note purchase financing nationwide. The company arranges equity, including JV and preferred equity investments, and structured financing. Davies Ingersoll also represents an elite aggregation of self storage and commercial real estate owners and investors.

“During this challenging economic and commercial real estate market, it is important to be a forward-thinking advisory firm that proactively provides solutions to our clients’ needs while being on the look-out for compelling investment opportunities,” said Davies, the firm’s President.

“This is one reason why our corporate strategy has a strong focus on matching our clients’ equity with the prudent acquisition of commercial real estate and self storage.”

With 28 years of commercial real estate experience, Davies previously served as senior vice president and shareholder of Buchanan Street Partners, and was a co-founder and principal of Buchanan Storage Capital which was the nation’s leading storage finance firm.

Davies has closed more than $3.5 billion in self storage financing and disposition transactions during the past 15 years with Buchanan Storage Capital, FINOVA Realty Capital and Belgravia Capital.

Davies serves on the Board of Directors of the California Self Storage Association and founded the “Self Storage Owner’s Summit”, of which the 5th Annual event hosted by the California Self Storage Association and Davies Ingersoll Capital Partners will take place on July 16th at the Balboa Bay Club in Newport Beach.

Ingersoll has more than 22 years of commercial real estate experience specializing in the acquisition and sale of self storage properties.

Currently, he serves as the firm’s CEO and is also a Managing Director of Sperry Van Ness/Davies Ingersoll where he has been one of the company’s top producing advisors for several years. Additionally, Ingersoll serves with Davies on the Board of Directors of the California Self Storage Association.

“As a Sperry Van Ness franchise owner, we are able to create local teams of experts throughout the U.S. by partnering with the company’s 1,000 advisors in approximately 160 offices,” said Ingersoll. “Sperry Van Ness provides a valuable platform from which to source property acquisitions and note purchases, and maintain access to local market knowledge.”

Ingersoll went on to say that, “Our real estate services and capital market platform is a perfect compliment to our co-investment strategy of matching investor equity with the best real estate operators.”

For more information, please visit http://www.daviesingersoll.com/.

Contact: David Ebeling, Ebeling Communications, (949) 278-7851, david@ebelingcomm.com

Frank Scherer Joins Grubb & Ellis as Vice President, Retail Group

CHICAGO, IL (July 6, 2009) – Grubb & Ellis Company (NYSE: GBE), a leading real estate services and investment firm, today announced that Frank Scherer has joined the firm as vice president, Retail Group, effective immediately.

In this role, Scherer will join senior vice presidents Ted Parris and Steve Monroe in supporting local and national clients as they restructure their real estate holdings during bankruptcy proceedings or other reorganization efforts.

“Frank brings extensive experience in supporting clients that are right-sizing, trying to decrease overhead costs to reinvest back into their business, or even undergoing Chapter 11 bankruptcy reorganization,” said Shawn Mobley,(top right photo) executive vice president and managing director of Grubb & Ellis’ Chicago offices. “Given the realities of today’s environment, we believe that this experience will be a significant benefit to our clients.”

Contact: Erin Mays 312.698.6735 erin.mays@grubb-ellis.com

CB Richard Ellis Orlando Brokers 10-Year Deal for Kitson & Partners

ORLANDO, FL, July 6, 2009 – The Orlando office of CB Richard Ellis is pleased to announce, Jorge Rodriguez, (top right photo) CCIM, Senior Associate in Retail Properties, has brokered a lease representing the landlord Kitson & Partners at Oak Groves Shoppes center located at 995 West State Road 434 in Altamonte Springs, Florida.

The lease for the Metro Muscle franchise totaling 17,249-sq.-ft. or a term of 10 years. The tenant was represented by Jeff Tanner and Kim Bracket with Coldwell Banker Commercial.

Contact: Angelique Greven, 407.839.3158, angelique.greven@cbre.com

Declining Port Traffic and Weak Job Market Push Industrial Vacancy Higher in Puget Sound, WA

SEATTLE, WA — Employment in the Seattle market will continue to decline this year, particularly in industrial-using segments, which will result in contracting demand for warehouse and flex properties, according to the Midyear 2009 National Industrial Report by Marcus & Millichap, the nation’s largest real estate investment services firm.

While vacancy will rise metrowide, performance will vary considerably by location.

Also included in the report is the firm’s Midyear National Industrial Index (NII), a snapshot analysis that ranks 28 industrial markets based on a series of forward-looking supply and demand indicators. Seattle remains at No. 3 this year.

“Many investors are remaining on the sidelines in response to softening industrial fundamentals,” says Gregory Wendelken, (middle left photo) regional manager of the firm’s Seattle office.

Following are some of the most significant aspects of the Seattle Industrial Research Report:

· Local employers are expected to cut 37,500 employees in 2009, a 2.2 percent decline. Substantial contraction is forecast in traditional industrial-using sectors, including construction and manufacturing, where losses will total nearly 17,000 positions.

· Construction of new space is projected to fall to 850,000 square feet this year. Deliveries have averaged more than 4 million square feet annually over the past five years.

· Negative net absorption is forecast to exceed 3 million square feet in 2009, resulting in a 150 basis point vacancy rise to 7.9 percent.

· With tenant demand easing this year, asking rents are expected to decline 6.6 percent to $5.66 per square foot; effective rents will drop 7.4 percent to $5.47 per square foot.

Orange County, CA moved up five spots to No.1 in this year’s Midyear NII, driven by a significant decline in new construction.

Last year’s leader, Los Angeles, fell to No. 2 on waning imports from Asia. Houston, ranked at No. 4, dropped two spots in the index due to the nation’s largest forecast inventory increase.

Denver rose two positions to No. 5 as expanding alternative energy companies should support fundamentals in the metro, despite the lingering recession.

For a copy of Marcus & Millichap’s Midyear National Industrial Report and the complete NII rankings, visit http://www.marcusmillichap.com/.

Press Contact: Stacey Corso, Communications Department, (925) 953-1716

Industrial Investors Look for Signs of Economic Rebound in Tampa

TAMPA, FL— The economic downturn will persist this year and drive down demand for industrial space in Tampa, according to the Midyear 2009 National Industrial Report by Marcus & Millichap, the nation’s largest real estate investment services firm.

With the market already recording considerable job losses, and with further cuts expected, local property owners continue to search for signs of an easing in the downturn.

Also included in the report is the firm’s Midyear National Industrial Index (NII), a snapshot analysis that ranks 28 industrial markets based on a series of forward-looking supply and demand indicators. Tampa moves down one place this year to No. 24.

“During the last year, the median price of properties sold in the market fell 7 percent to $66 per square foot.,” says Bryn Merrey, (top right photo) regional manager of the firm’s Tampa office.

Following are some of the most significant aspects of the Tampa Industrial Research Report:

· In 2009, employers will eliminate 50,000 jobs, a 4.2 percent decrease. More than 46,000 positions were lost last year.

· Completions will fall to 350,000 square feet of competitive space this year from 3.1 million square feet in 2008. Also, 950,000 square feet of owner-occupied space is slated to come online.

· The vacancy rate has risen thus far in 2009 and is on course to finish the year at 11.8 percent, an increase of 210 basis points from year-end 2008. Negative net absorption of 3.1 million square feet will be recorded.

· Asking rents are forecast to decrease 7 percent to $5.56 per square foot this year,

Orange County moved up five spots to No.1 in this year’s Midyear NII, driven by a significant decline in new construction.

Last year’s leader, Los Angeles, fell to No. 2 on waning imports from Asia. Seattle held steady at No. 3 as limited construction activity will keep vacancy largely in check. Houston, ranked at No. 4, dropped two spots in the index due to the nation’s largest forecast inventory increase.

Denver rose two positions to No. 5 as expanding alternative energy companies should support fundamentals in the metro, despite the lingering recession.

For a copy of Marcus & Millichap’s Midyear National Industrial Report and the complete NII rankings, visit www.MarcusMillichap.com.

Press Contact: Stacey Corso, Communications Department, (925) 953-1716

Recession or Not, Love Hotels in Japan Doing Booming Business

TOKYO—Found: A recession-proof industry. Love hotels. Operators prefer to call them Leisure hotels.

There are an extimated 25,000 of them throughout Japan, all of them surviving and many even thriving in the country’s worst recession in 60 years.

Steve Mansfield, CEO of New Perspectives, tells CNN the love hotel industry has proven “very resilient over the last six to nine months.” Mansfield’s company operates six properties.

One of them, the Bonita Hotel in Isawa, boasts a 257 percent occupancy rate. Rooms are rented by the hour. Full-day rentals are not uncommon.

Mansfield's company estimates the industry in Japan pulls in $40 billion a year in revenue.
He tells CNN, "It's a natural human desire. Even these days, on the weekend, every love hotel is full of people -- it's hard to get in.”

Mansfield says love hotels fill a need for privacy in a country where high population density often means couples have little time alone.

Rooms offer a broad assortment of features, including karaoke machines, PlayStation game consoles, DVD players, a variety of cosmetics, customized condoms and indoor-outdoor Jacuzzis.

Though required by law to have a front desk, most rooms can be rented and entered without talking to a clerk.

The days of Japanese being ashamed to enter love hotels are coming to an end, though, Mansfield said.

"Seventy-five percent of our guests are members of our points program," he said. "They carry our points cards, they collect points and they receive gifts. That's something people are very comfortable with, and I think that reflects the customers that we attract."

Takashi Yamamoto, who designs love hotels in Tokyo, agrees.

He tells CNN, "The bad image that love hotels had has faded over time. Also, customers started to raise their voices and became more selective about choosing hotels. In response, management has improved."

The flashiest love hotels are found in Osaka, including a Hello Kitty-themed hotel and one with a room featuring a merry-go-round.

Tokyo hotels tend to be tamer, focused on winning customers with amenities. The Style A Hotel, for example, offers a suite for $190 that includes a full-size Jacuzzi and a private sauna.

Though young couples make up the majority of customers, they are not the only ones. One man, who declined to be named, told CNN, "I go to love hotels when I'm drunk and don't feel like going home."

Whatever the reasons, the hotels have been doing well enough that Mansfield recently went to London, seeking investors to expand.

"Through our research we've worked out that 90 percent of owners have five or fewer hotels," he says.

Mansfield estimates there is plenty of room for expansion in this unheralded industry in Japan.

Los Angeles Medical Office Market Outperforms Nation

LOS ANGELES, CA--Marcus & Millichap Real EState Investment Services reports medical office properties in the Los Angeles metro continue to perform favorably, despite the nationwide recession, and healthcare reform bodes well for the sector’s future performance.

Unlike other asset types, medical office properties continue to garner investor demand by exhibiting considerable resistance to the economic downturn.

Medical office vacancy in Los Angeles is currently 8.7 percent, while traditional offi ce vacancy in the metro is 11.5 percent.

By comparison, the U.S. averages for medical offi ce and traditional offi ce vacancy rates were 11.7 percent and 15.2 percent, respectively, in the fi rst quarter. Much of the medical offi ce sector’s resilience can be attributed to the positive state of the healthcare industry.

While nonfarm employment in Los Angeles is forecast to weaken further in 2009, demand for medical offi ce space will get a boost from growth in the education and health services industry, where employers are expected to add almost 10,000 positions by year end.

The United States as a whole is also projected to record growth in education and health services employment this year, starting with a 0.4 percent expansion in the fi rst quarter.

During the same period, education and health services firms in Los Angeles created more than 7,000 jobs for an increase of 1.4 percent.

These gains point to continued demand for medical space; however, as the recession wanes and the unemployed return to work, healthcare requirements will grow, further strengthening the medical office market.

A further boost to the medical office sector may come from the new administration’s healthcare reform efforts to broaden medical coverage and access.

Los Angeles has one of the highest uninsured rates in the nation, with more than 25 percent of the population lacking health coverage, compared to 16 percent nationwide.

With 75 percent of the metro‘s inhabitants covered, there is approximately 4.2 square feet of medical offi ce space per insured individual. An increase in the insured rate to even 90 percent of the population by 2013 would necessitate roughly 8 million square feet of additional medical office space, using the current ratio.

For a complete copy of the company's report, please contact Stacey Corso, stacey.corso@marcusmillichap.com

Beazer Homes Agrees to Pay $53M to Settle Mortgage Fraud Charges

WASHINGTON, DC – In the most blatant case of mortgage fraud disclosed to date, Atlanta-based Beazer Homes USA Inc. has agreed to pay a total $53 million to settle a U.S. Dept. of Justice lawsuit.

The suit could have triggered criminal prosecution against the 41-year-old homebuilder and possibly put it out of business, sources in a position to know tell Real Estate Channel.

The Justice Dept. says Beazer will pay $5 million to the federal government and up to $48 million to victimized homeowners.

"We deeply regret these matters and have used what we have learned to strengthen our control and compliance culture," says Beazer Chief Executive Ian J. McCarthy (top right photo).

The company, which calls itself the 10th largest homebuilder in the U.S., closed its mortgage unit in February 2008. The federal fraud investigation has been going on since 2007.
The company, founded in London in 1968, operates in 16 states.

Beazer Homes has been listed on the New York Stock Exchange since 1994 under the ticker symbol BZH.

The settlement is tied to an agreement with federal prosecutors in North Carolina that will allow the company to avoid criminal prosecution on the mortgage-fraud charges, and on other accounting-fraud charges related to the manipulation of company earnings.

In a separate action, the Securities and Exchange Commission has filed civil charges against Michael T. Rand, Beazer's former chief accounting officer. Rand is accused of conducting a fraudulent earnings scheme and hiding his wrongdoing from outside auditors and other company accountants.

The New York Times and The Washington Post report separately that In the mortgage fraud case, prosecutors said Beazer ignored income requirements in making loans to unqualified buyers, and sought to hide from the Federal Housing Administration that some company branches had excessive default rates on their loans.

Prosecutors in North Carolina also said Beazer charged home buyers interest "discount points" at closing but kept the money and didn't reduce interest rates on the loans, the newspapers report.

The homebuilder provided buyers with cash gifts so they could come up with minimum down payments, only to add the gift price onto the purchase price of the house, according to the Justice Dept.

When home sales slowed in 2006, Beazer tapped into a reserve for land development and house construction and improperly boosted its slumping earnings, the agency says.

In the end, the SEC said, Beazer understated the company's income in SEC filings by $63 million between fiscal years 2000 through 2005.

In addition, the company overstated its income and understated losses by a total of $47 million in fiscal year 2006 and the first two quarters of fiscal year 2007.

Expansion of SBA’s latest initiative could have dramatic impact on Small Businesses, National Economy, says Chris Hurn

ALTAMONTE SPRINGS, Fla. - The U.S. Small Business Administration’s helpful decision recently to extend its SBA-504 lending program ---which helps small business owners who want to acquire or develop their own facilities---doesn’t go far enough, says Chris Hurn, (top right photo) chief executive officer of Mercantile Capital Corporation in Altamonte Springs.

Hurn’s analysis, which he published at www.504Experts.com, is getting some major media traction, including a lengthy interview in the New York Times.

The most recent SBA initiative---announced last February and put into effect recently---extends the SBA’s 504 lending program to include refinancing.

Hurn gives the SBA credit for extending the 504 loan program. But the SBA initiative requires businesses to use new funds for expansion purposes only.

“That’s the kink,” Hurn said. “How many small businesses are in an expansion mode in this economy?” he asked.

Billions of dollars worth of potential small business loans go unfunded every year, Hurn said.

“That money needs to be in the marketplace to have any positive effect on small business growth. The $255 million,” Hurn said.

The numbers back Hurn’s proposition: SBA 504 loans are down 41.5 percent this fiscal year and the total dollar amount funded has dropped 42.5 percent from last year.

“The SBA is moving in the right direction, but the positive impact on small business growth in the U.S. would be explosive if SBA would lift its restriction to small business expansion and open the door to true refinancing,” Hurn added.

For more information, contact:

Chris Hurn, Chief Executive Officer, Mercantile Capital Corporation, 407-786-5040
Shannon Marks, President, Mercantile Capital Corporation, 407-786-5040
Larry Vershel, Larry Vershel Communications, 407-644-4142

Landmark Watergate Hotel, Vacant for 5 Years, Faces Foreclosure

WASHINGTON, DC—Watergate, a name synonymous with the late President Richard M. Nixon, (bottom right photo) is in the news again.

Getting the attention this time is the 251-room Watergate Hotel, part of a six-building office complex overlooking the Potomac River in northwest Washington, D.C.

The property gained international headlines from the June 17, 1972 politics-motivated burglary that led to Nixon's resignation on Aug. 8, 1974.

The hotel is headed for foreclosure unless the lender, New York City-based PB Capital Corp., agrees to new terms with D.C. developer-owner Monument Realty, company officials confirm. PB Capital is a non-bank subsidiary of Deutsche Postbank AG.

Monument has defaulted on a $70 million loan that came due this week, another fallout from the real estate crash and the collapse of Lehman Brothers, a partner and equity investor in the property, reports The Washington Post.

PB Capital holds $40 million of the $70 million loan.

The hotel has been closed since Monument bought the property five years ago. At that time, the developer had planned to redevelop it as a luxury hotel but the residential market soured and shelved those plans, according to Michael J. Darby, (middle left photo) a company principal and co-founder.

"Monument is still committed to the Watergate," says Darby. "We still believe it's a phenomenal asset and will have the potential to be a great hotel in the future." Monument "would want to stay involved in the project if at all possible," Darby adds.

"Everyone thought this (Watergate Hotel concept) would be a home run at the time," says Dan Fasulo, managing director of Real Capital Analytics, a New York firm that tracks commercial real estate.

But the hotel may still surface as a successful asset, some industry watchers note.

"At the end of the day, it's a landmark," says 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?"