""Jones Lang LaSalle"":http://www.joneslanglasalle.com and its partner ""Real Estate Disposition, LLC"":http://www.auction.com (REDC), will host a hotel-only note and REO auction in November with more than $420 million in primarily non-performing notes. The companies say it will be the largest hotel-note auction in the United States.
[IMAGE]The 62 notes and two REO properties are from five special servicers and two regional banks. They are backed by a wide distribution of full and select service hotels across the country. The average unpaid balance on the commercial loans is $6.4 million.
The auction event, held November 1 through November 3, will include hotels located throughout 25 states, 10 of which are in Florida, eight in California, and seven in Georgia.
[COLUMN_BREAK]In a statement, the Chicago-based Jones Lang LaSalle highlighted several non-performing notes on the auction block, including the hotel Courtyardâ€"Lyndhurst in New Jersey with an unpaid balance of $34,011,990 and the Queen & Crescent Hotel in New Orleans with an unpaid balance of $12,098,603.
""Never before have we seen this large a pool of hotel-only notes go on the auction block,"" said Bart Steinfeld, managing director of Jones Lang LaSalle's Real Estate Investment Banking.
Steinfeld added, ""It's another indication that financial institutions and specifically special servicers have become increasingly eager to move non-performing notes from their portfolios. With fundamentals improving in the hotel sector, we expect strong demand from ‘loan-to-own' investors looking to purchase the notes as a way to control the underlying asset.""
Jones Lang LaSalle encourages interested parties to register online to receive note auction updates and bid at ""jll.com/auctions"":http://www.jll.com/auctions or ""auction.com"":http://www.auction.com.
""Everyone from local to national and international hospitality investors will be able to participate on an even playing field"" through the online auction platforms, commented Jeffrey Frieden, CEO of California-based REDC.