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

TRD MIAMI /
Sep.September 14, 2017 01:30 PM

Empty streets in downtown Miami. (Credit: Reuters)

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
Westfield Broward mall, CEO Christophe Cuvillier

Westfield Broward mall’s $95M CMBS loan heads to special servicing

Westfield Broward mall’s $95M CMBS loan heads to special servicing
Clevelander South Beach

Party’s over: Clevelander South Beach closes after employee tests positive for Covid

Party’s over: Clevelander South Beach closes after employee tests positive for Covid
Southland Mall in Cutler Bay

Wells Fargo seeks to foreclose on Southland Mall in Cutler Bay

Wells Fargo seeks to foreclose on Southland Mall in Cutler Bay
Jamie Dimon of JPMorgan, Southland Mall and Investcorp co-CEOs Rishi Kapoor (top) and Hazem Ben-Gacem (Credit: Getty; Southland; Investcorp)

Investcorp wants out of struggling Southland Mall

Investcorp wants out of struggling Southland Mall
Investcorp CEO Hazem Ben-Gacem and Southland Mall (Credit: Google Maps)

Southland Mall’s $65M loan heads back to special servicing

Southland Mall’s $65M loan heads back to special servicing
Dave Folsom, president & CEO of Sotherly Hotels, and the DoubleTree Resort by Hilton Hollywood Beach at 4000 South Ocean Drive (Credit: Google Maps)

Hollywood DoubleTree’s $59M CMBS loan enters special servicing

Hollywood DoubleTree’s $59M CMBS loan enters special servicing
Clockwise from top left: 10800 Pines Boulevard, 701 Lincoln Road and 8888 Southwest 136th Street (Credit: Google Maps)

Struggling SoFla retail market faces $6B in CMBS payments

Struggling SoFla retail market faces $6B in CMBS payments
Fontainebleau Miami Beach (Top), Diplomat (Left), and Boca Raton Resort (Right)

SoFla hotels face $4B CMBS debt exposure

SoFla hotels face $4B CMBS debt exposure
arrow_forward_ios

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

Loading...