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The Real Deal Miami

SF loan delinquencies keep climbing

By Alexander Britell | September 08, 2010 03:45PM

The Miami-Fort Lauderdale-Miami Beach metropolitan area saw its commercial mortgage-backed securities loan delinquency rate climb last month, rising to 10.88 percent, according to data through Sept. 1 compiled for The Real Deal by analytics firm Trepp.

CMBS delinquencies across the United States have hit a record high, after two months of improvement; the overall CMBS delinquency rate in August was 8.92 percent nationwide.

Still topping loans in the region that are more than 60 days delinquent in dollar value, according to the Trepp list, is the Shore Club, which is more than 90 days delinquent on its $109.78 million loan. Second on the list is the troubled Biscayne Landing site at Biscayne Boulevard and Northeast 151st Street in North Miami, which was the target of a proposed indoor ski resort called Solar Mountain. There are 99 delinquent properties on the list (see below).

Solar Mountain was modeled on Ski Dubai, an indoor ski venue in the United Arab Emirates, although the North Miami project has since been shelved.

The Royal Palm Hotel, which is located at 1545 Collins Avenue and was sold last month for $126.1 million at auction, is the third-highest delinquent CMBS loan, according to the Trepp list.

The largest office loan that is currently delinquent is Rivergate Plaza, at 444 Brickell Avenue in downtown Miami, with a $58.5 million balance that is currently real estate-owned.

While Miami-Dade County dominates the top of the list, the biggest delinquent loan in Palm Beach County is the $58 million loan on the Union Square Apartments in Palm Beach. Broward County’s largest delinquent CMBS loan is the Nortel Networks Building in Sunrise.

There are now 99 CMBS property loans in the region which are more than 60 days delinquent, with eight loans of $50 million or more.

South Florida Delinquencies