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Saudi Arabian Investor Could be New Owner of Shuttered Watergate Hotel

Alex Finkelstein Real Estate Channel
Hotel Watergate

Hotel Watergate

(WASHINGTON, D.C.) -- Dark since 2007, the 251-room, 12-story Watergate Hotel, across from the Kennedy Center, goes on the auction block tomorrow (July 21).

The auction is being held after developer-owner Monument Realty of DC defaulted on a $70 million loan.  New York City-based PB Capital Corp., a non-bank subsidiary of Deutsche Postbank AG, holds the largest portion of that loan, $40 million.

(Please see previous Real Estate Channel article posted July 6, "Landmark Watergate Hotel, Vacant for 5 Years, Faces Foreclosure.")

Real estate and investment sources close to the scene, tell Real Estate Channel a Saudi Arabian investment group will ultimately wind up as the buyer of the riverfront property, but it won't happen at tomorrow's auction.

Sources tell REC the deal will go down this way:

Bidding at the DC offices of Alex Cooper Auctioneers will start at $1 million. The bidding is not expected to reach $40 million, the amount owed to PB Capital, sources tell Real Estate Channel.


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