Pimco Fund Walks Away From 20 Hotels With $240 Million of Debt

  • Appraisal for the properties was cut 16% in December
  • Buildings were located in states including Texas and Indiana

Pimco headquarters in Newport Beach, California.

Photographer: David Swanson/Bloomberg
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A joint venture tied to a Pacific Investment Management Co. fund surrendered a portfolio of 20 hotels with a $240 million mortgage.

The properties, located in cities including San Antonio and Carmel, Indiana, were forfeited in a deal that closed in September, according to commentary filed this week by the loan’s servicer. The Pimco portfolio, valued at $326 million when the debt was originated in 2017, was cut 16% to $272.8 million in a December appraisal.