The Real Deal Miami

Cohen’s DCOTA is delinquent on second loan: Trepp report

The Dania Beach project has had trouble with its loans since 2012
By Keith Larsen | March 11, 2019 01:30PM

Charles Cohen and the Design Center of the Americas

Cohen Brothers Realty Corp. faces a second delinquency on loans backing the Design Center of Americas, a financially troubled interior design showroom in Dania Beach.

A $86.5 million loan was marked delinquent in February, just three months after the borrower said it could not meet the payments on a separate $86.5 million loan secured by the property, according to Trepp, a financial data provider.

The newly delinquent loan is now more than 30 days past due, Trepp reported. It ranked it as one of the five largest CMBS loans to turn newly delinquent in 2019.

The Design Center of Americas, known as DCOTA, is a 782,986-square-foot property at 1855 Griffin Road, owned by New York-based Cohen Brothers Realty Corp.

The property was built in 1985 as an interior design showroom, but has struggled to retain tenants amid changing retail habits. It has converted much of the design center space to office property, leasing 100,000 square feet for the headquarters of online pet retailer Chewy.com.

Still, the property is currently only 64 percent occupied, according to Trepp.

The property has had trouble with its debt since 2012, when a note went into special servicing and terms of the loan had to be modified. The loan’s interest rate was lowered and its maturity date was extended for a two-year term that ended in August 2017. It was then later extended until March 2019.

Cohen Brothers Realty Corp. is headed by Charles Cohen. It holds over 12 million square feet of commercial property nationwide, with notable New York office properties including 3 Park Avenue, Grand Central Plaza and International Plaza.