The Real Deal Miami

Retail, office properties top South Florida’s delinquent loans

November 02, 2010 05:45PM

The Shore Club

While South Florida’s office and retail markets struggle to work their way out of the downturn, the majority of the area’s largest delinquent loans are on such properties, according to data through Nov. 1 compiled for The Real Deal by analytics firm Trepp.

Of 97 properties with loans of $1 million or more that are more than 60 days delinquent, 27 are retail properties and 26 are office properties. There are also 13 delinquent multi-family properties and four delinquent hotels.

The individual property with the largest delinquent commercial mortgage-backed security loan is neither office nor retail; the largely vacant Biscayne Landing site in North Miami is at the top of the list for the second month in a row, with a loan of $130.74 million that is non-performing beyond its maturity date of May 2009, according to the Trepp data, released today.

The property had been the site of the proposed indoor ski facility Solar Mountain until plans were ultimately shelved.

Second on the list is the Shore Club hotel at 1901 Collins Avenue in Miami Beach, which is more than 90 days delinquent on its $109.43 million CMBS loan. The 309-unit hotel went into foreclosure in early March.

With a loan balance of $58.5 million that is more than 90 days delinquent, the Rivergate Plaza at 444 Brickell Avenue remains South Florida’s largest delinquent office property.

The region’s retail market has been boosted of late by increased activity and larger deals, including the lease of 23,000 square feet at Westland Promenade in Hialeah by electronics retailer hhgregg, and a flurry of leases at Miami International Airport.

One South Florida company has turned to bus tours to help promote Broward County’s sagging retail market, with the Boca Raton-based Retail Bus Tour charging realtors $99 to give their customers a closer look at the area’s retail space.

As for the office market, despite the number of delinquent office loans, the Miami area in particular is starting to show signs of life, with the vacancy rate decreasing to 18.1 percent in the third quarter.

Properties 60 or more days delinquent by loan balance