I’ve been involved in many large real estate loans. What this article intentionally doesn’t point out because it is so busy trying to disparage the REIT is that these loans are designed from the beginning to limit personal liability by ANYBODY. In a default, and barring fraud or malfeasance of some kind by the borrower, the lenders can look only to their collateral. In this case it was hotels.
“Capital Formation” is an ancient process and has many variants. This “loan” is one of them.
“I’ve been involved in many large real estate loans. What this article intentionally doesn’t point out because it is so busy trying to disparage the REIT...”
Cool to have someone who was (or is) an insider, and I’ll admit that my bias was formed in run-up to 2008 with those INSANE Option ARMs, which should have NEVER been used for residential real-estate, much less for ‘qualifying’ people who didn’t have a prayer in getting a 30 year fixed.