Waldorf Astoria in DC Files for Foreclosure 

The lender of the $250 million-plus note secured by the leasehold on the Waldorf Astoria Washington D.C. has filed a notice of foreclosure sale on the leasehold interest of the downtown property, Washington Business Journal reported. Two entities affiliated with MSD Partners filed an affidavit of nonresidential mortgage foreclosure, citing a balance on the note of $252.7 million. The sale is scheduled for June 20 at the D.C. office of Alex Cooper Auctioneers. 

Miami’s CGI Merchant Group, which purchased the lease rights to the former Trump International Hotel at 1100 Pennsylvania Ave. NW for $375 million in 2022, defaulted on its $285 million loan earlier this year. CGI stated it is engaged in discussions with Hilton, the property’s manager, and other parties for a consensual financing solution. Chicago-based MSD Partners is the main lender to CGI and holder of the defaulted loan. 

“CGI is engaged in productive discussions with the property’s manager, Hilton, and several other parties who want to reach a consensual financing solution that reflects the realities of today’s challenging, rising rate environment. MSD’s unilateral decision to file a foreclosure notice is inconsistent with the discussions and possibly invalid. Although our goal is to continue advancing constructive negotiations with all parties, including MSD, we’re prepared to take all necessary steps to protect the rights of CGI and its partners,” a statement from CGI Merchant Group.