Surprise! The biggest “seriously” delinquent commercial real estate loans in South Florida are for retail properties, a newly released report reveals.
At the top of the list is a $37.5 million mortgage for the Burlington-leased building at 10101 Southern Boulevard in West Palm Beach, according to the Trepp report, which shows the largest delinquent loans behind properties in the biggest markets across the U.S. Trepp considers seriously delinquent as 90 days or more past due.
Property records show 10101 Southern Boulevard Holdings LLC foreclosed on the building in 2016. The LLC is controlled by CW Capital in Bethesda, Maryland.
Next is the former Gander Mountain store at 100 Gander Way in Palm Beach Gardens, which has a balance of $13.8 million. The property was hit with a $14 million foreclosure suit against its owner, Gan Palm Beach Lessor Corp., earlier this year.
Gander Mountain, an outdoor and sporting goods retailer closed dozens of its stores nationwide over the summer, in an attempt to emerge from Chapter 11 bankruptcy. Its store in Palm Beach Gardens was one of them.
Here’s the full list of the five largest seriously delinquent loans:
- $37.5 million outstanding loan | Southern Center at 10101 Southern Boulevard in West Palm Beach | Maturity date: February 11, 2017
- $13.77 million outstanding loan | Gander Mountain at 100 Gander Way in Palm Beach Gardens | Maturity date: March 1, 2043
- $13.2 million outstanding loan | Home Depot Homestead on Southwest 137th Avenue in Homestead | Maturity date: June 1, 2017
- $6.5 million outstanding loan | PGA Commons at 5510-5540 PGA Boulevard in Palm Beach Gardens | Maturity date: July 11, 2013
- $4.8 million outstanding loan | JFK Medical Building at 4801 South Congress Avenue in Lake Worth | Maturity date: May 11, 2016
The real-estate owned and foreclosed properties show the fast declining state of retail in the country, where stores have shuttered and companies like Toys “R” Us filed for bankruptcy amid a changing market.
Trepp’s overall nationwide delinquency rate for commercial real estate loans in commercial mortgage-backed securities increased to 4.55 percent in March, marking the first time the rate increased since June.