Irma-related damage could affect $27B in securitized mortgages in Florida

Of the $26.6B more than $14B is in Miami-Dade, Broward and Palm Beach counties

Miami /
Sep.September 14, 2017 01:30 PM

Some $26.6 billion in securitized commercial mortgages is potentially at risk in Florida, thanks to major damage left behind by Hurricane Irma.

An analysis from Morningstar Credit Ratings looked into 16 Florida counties where it found about 1,840 properties backing 1,471 securitized loans. The counties were declared by the Federal Emergency Management Agency to be disaster areas eligible for individual assistance.

Of the $26.6 billion, more than $14 billion is in Miami-Dade, Broward and Palm Beach counties. About $6.41 billion is concentrated in Miami-Dade, $4.32 billion in Fort Lauderdale and $3.9 billion in West Palm Beach.

Three of the largest loans secured in the tri-county area is related to Aventura Mall, where about $1.2 billion of exposure is estimated; Boca Raton Resort, with about $430 million; and Pembroke Lakes Mall, with about $260 million.

In the Florida Keys, where FEMA assessed Hurricane Irma destroyed about 25 percent of homes, there is roughly $291.4 million in CMBS exposure. The two largest loans in the area arise from the Cheeca Lodge and Spa and the Ocean Key Resort and Spa. Combined, the balance amounts to about $156.2 million, according to the report.

In its analysis, Morningstar said it does not expect a wave of loan defaults, claiming business-interruption insurance could cover any gaps in service. But flood damage proves to be a challenge for loans set to mature over the next 12 months. The damage could jeopardize the payoff of roughly $1.89 billion, according to the report, as the damage may prevent refinancing the existing loan.


Related Articles

arrow_forward_ios
Hollywood Locations' Christopher Ursitti and 1400 Northwest 31st Avenue (Hollywood Locations, Google Maps)
Movie studio complex may rise on former incinerator site in Fort Lauderdale
Movie studio complex may rise on former incinerator site in Fort Lauderdale
McDowell wants to build 201 apartments near Homestead, puts land under contract
McDowell wants to build 201 apartments near Homestead, puts land under contract
McDowell wants to build 201 apartments near Homestead, puts land under contract
Jackie Soffer with 2750 Northeast 199th Street (Google Maps, Turnberry.com)
Jackie Soffer’s Turnberry proposes office/retail project near Aventura Mall
Jackie Soffer’s Turnberry proposes office/retail project near Aventura Mall
Elliot Stone of Royal Castle Companies (FIU Foundation, LoopNet)
Royal Castle Companies buys offices at Boca’s Park at Broken Sound
Royal Castle Companies buys offices at Boca’s Park at Broken Sound
Kobi and Nancy Karp buy Walgreens-leased property in Delray Beach
Kobi and Nancy Karp buy Walgreens-leased property in Delray Beach
Kobi and Nancy Karp buy Walgreens-leased property in Delray Beach
New York, Miami, Chicago, Los Angeles, San Francisco and Chicago (iStock)
As rent explodes nationally, Miami tops the charts
As rent explodes nationally, Miami tops the charts
Cross County Plaza (Madison Properties)
West Palm shopping center foreclosure suit leads to CMBS drama
West Palm shopping center foreclosure suit leads to CMBS drama
Alta Developers’ Raimundo Onetto in front of the development site (Google Maps)
Heading south: Alta buys dev site for apartment complex near Homestead
Heading south: Alta buys dev site for apartment complex near Homestead
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...