Tuesday, July 21, 2009

Watergate Auction Sees No Bids, PB Capital Holds Property

The Watergate Hotel went to the auction block this morning. According to Reuters, with an opening bid at $25 million, no bids were placed and PB Capital Corp. made a credit bid to wipe out all debts on the property for $25 million. This despite the $40 million the bank was owed by Monument Realty, whose financing partner on the project, Lehman brothers, went bankrupt this past fall.

Ten bidders, including hotel chains and developers both US-based and international, registered, having demonstrated their $1.1 million deposit. However, the $25 million opening bid apparently was more than they were willing to bite off. Several developers remain interested in the property, including Monument, which may ultimately work with PB Capital to buy the property back and continue their plan to develop a hotel with some areas zoned for residential use.



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