It’s been a rough year for Cohen Brothers Realty Corp.’s Design Center of the Americas in Dania Beach. Following loan delinquencies, a new appraisal has cut the value of the property by more than half.
DCOTA, at 1855 Griffin Road, was previously valued at $250.35 million, but is now worth $115 million based on June’s remittance data, according to Trepp, a New York-based financial data provider.
In February, an $86.5 million loan secured by the 782,986-square-foot property was marked delinquent, according to Trepp. That came less than three months after it was delinquent on a second loan of $86.5 million.
DCOTA 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 was only 64 percent occupied in the third quarter of 2018, Trepp previously reported.
Cohen Brothers Realty did not immediately respond to a request for comment.
DCOTA 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., led by Charles Cohen, 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.