Fairfield Inn & Suites in Butler Township is under contract for $2.7 million after being auctioned off in May.

The sale, which occurred as part of an auction following a November foreclosure due in part to months of decreased revenue as a result of the COVID-19 pandemic, will likely be finalized in the next few days or in mid-August at the latest, according to securities filings.

A commercial mortgage trust that was servicing the loan indicated in a filing Tuesday that the property's sale price was $2.7 million. The Fairfield was auctioned on the Ten-X commercial property auctioning platform beginning May 17.

Following the closure of bidding May 19, the web page has stated the property is in escrow, but has not shown additional information in the more than two months since.

Moody National Companies, the Texas-based prior owner of the hotel, defaulted on the loan in the spring of 2020. As a result, the loan was transferred to “special servicing” at the “borrower's request as a result of the COVID-19 pandemic.”In June 2020, the bank went to court to foreclose on the property, and in July the prior owner began the process of transferring the mortgage to a servicer. In November, the transfer of the property to the servicer was completed via sheriff's sale.Since then, a Florida company called Rialto Capital Advisors owned the property on behalf of the mortgage trust. GF Hotels & Resorts, a Philadelphia-based hospitality management company, operated the hotel due to the property being placed in receivership, earlier SEC filings showed.

The $2.7 million contract for the hotel is lower than the property's value in 2007, when Moody purchased the property, and less than the amount for which Moody obtained a 2014 mortgage.In September 2007, Moody bought 200 Fairfield Lane for $2.44 million in cash and $4.8 million in “other consideration” — the same amount as was outstanding on the then-owner's mortgage, which Moody assumed — for a total purchase price of $7.2 million.Subsequently, in 2014 Moody obtained an $8 million mortgage on the property from Ladder Finance, which was sold to Wells Fargo three months later. Wells Fargo serves as trustee for the commercial mortgage trust.In SEC filings, the mortgage trust indicates the 2014 loan has an outstanding balance of $6.9 million with a maturity date — when the balance would have been due — in May 2024.Should the sale close, the mortgage trust will have sold the property for $4.2 million less than the outstanding balance.Moreover, the property has an assessed value of $587,870, giving it a fair market value of $7.4 million. With a $2.7 million sale, the new buyer would receive a discount of $4.7 million from the county's view of a fair market price.