The Real Deal Miami

SF property loan delinquencies rise again

By Alexander Britell | August 23, 2010 06:00PM

The Shore Club hotel

As of the end of July, there were 89 properties in South Florida that were 60 days or more delinquent on their commercial mortgage-backed security loans of $1 million or more, according to data commissioned by The Real Deal from analytics firm Trepp.

The hardest-hit sectors were retail and office. Twenty-four of the properties that were more than 60 days delinquent were retail, and 22 office properties were similarly late on their CMBS payments.

The total loan balance of distressed properties in the Miami-Fort Lauderdale-Miami Beach metro area fell from June to July, but the delinquency rate increased to 10.43 percent last month, compared to 10.18 percent in June and 8.27 percent in January of this year. The number was up from just 4.71 percent in July 2009.

The list is led by the Shore Club hotel, at 1901 Collins Avenue, which is more than 90 days delinquent on its $109.95 million loan.

Another Notable properties on the list include the Royal Palm Hotel, which was sold earlier this week for a high bid of $126.1 million, although the CMBS portion of the debt was $74.03 million.

South Florida’s largest non-performing retail loan remains the $79.42 million loan on the Gallery at Cocowalk in Coconut Grove, which is also more than 90 days delinquent.

Of 1,277 total loans over $1 million as of July 2010, there were 97, or 10.43 percent, that were more than 60 days delinquent. In the same period in 2009, 44 of 1,414 loans, or 4.41 percent, were more than 60 days delinquent.

Nationwide, the delinquency rate for commercial mortgage-backed securities also rose again last month to 8.71 percent, an all-time high for that market.

But the rate of increase is slowing, helped in part by an increase in the number of loan modifications. July’s month-over-month delinquency rate increase was the smallest in a year, up just 12 basis points over June, according to Trepp. (Note: only partial list of properties included).Trepp Chart