Tri-county area has 22 office properties that have loans of $1 million or above that are 60 or more days delinquent
Rivergate Plaza at 444 Brickell Avenue
Miami’s Rivergate Plaza office tower at 444 Brickell Avenue is the largest delinquent commercial mortgage-backed security office property loan in South Florida, at $58.5 million, which is currently real estate-owned, according to data through July compiled by analytics firm Trepp.
Despite a recent report by Colliers International that Miami-Dade County’s office market is finally reaching a bottom, there are nine delinquent office property loans of $13 million or more in South Florida, including three in Miami-Dade County.
In all, there are 22 office properties in the tri-county area that have loans of $1 million or above that are 60 or more days delinquent, with the majority in Broward County.
The second-biggest distressed office property loan is at the northern tip of Miami-Dade County in Aventura, the Harbour Center at 18851 NE 29th Avenue, which is more than 90 days delinquent on its $51.18 million loan.
Broward County’s largest delinquent office property loan is the Nortel Networks building in Sunrise, which is more than 90 days late on its $26.5 million loan.
Palm Beach, which has five properties on the list, is led by the Horizon & Mellon Office Buildings complex, which is more than 90 days delinquent on its $22.4 million loan.
According to the data from Trepp there were 89 properties in South Florida that were 60 or more days delinquent on their CMBS loans of $1 million or more through the end of July.
Four of the properties, including the Office Depot Building in Boca Raton, are currently in foreclosure. Office Depot moved its headquarters from the recently sold Delray Corporate Center to the Boca Raton location at 750 Park of Commerce Drive.
The mid-year report released today by Colliers International today described the potential for forming a bottom in South Florida’s office market. The data from Colliers showed a 16 percent vacancy rate for Miami-Dade office space, a 15 percent rate in Broward County and a 20 percent vacancy rate for Palm Beach’s office market.
Source: Trepp. Note: Top ten properties included.