Scott Van Voorhis has an interesting article in today’s Boston Courant: Collateral May Be Weak In City’s Loan to W. The following are a few excerpts from the article:
All that stands between City Hall and losing millions in the wake of the bankruptcy filing by the owner of the new W Boston Hotel and Residence is an empty Back Bay building, a parking lot and some modest Beacon Hill apartments, city appraisal records show.
…What remains are properties whose value depends on their future development potential at a time when construction of new buildings has ground to a halt.
“That has got to put that loan at great risk now.” said Thomas Engel, president of the T.R. Engel Group, a Boston-based hotel consulting firm “You go into the bankruptcy process and everyone stands in line. Everyone is going to get a haircut.”
I’m sorry the Boston Courant has no link to the story.