The number of Miami foreclosures registered so far this year is 54,462, and is on track to surpass 2008's 56,656. A good part of the boost can be attributed to the distress being experienced by commercial property owners. A review of county records shows that, since January 2009, all types of commercial real estate are being affected, from vacant industrial land, to office buildings, hotels, shopping centers and apartment buildings.
Trophy commercial properties are not exempt from trouble. Such is the case of an office building with an assessed value of $35 million that went into foreclosure recently. Located in the heart of the Miami financial district, at 444 Brickell Avenue, this building has an area of 342,978 square feet and sits on a 1.78 acre lot. This foreclosure action was initiated by Bank of America, who holds a $59 million mortgage on that and the adjoining property. The latter, a smaller 113,436 square feet office building on 2.35 acres, located at 77 S.E. 5th St., is also included in BofA's action. Both buildings are situated across from the Hyatt Regency Miami, facing the Miami River.
Furthermore, another BofA-financed property in Miami-Dade County is facing a $23.5 million foreclosure lawsuit. A condo conversion located at 3300 N.E. 192nd St. in Aventura, this 20-story tower still has 64 unsold units out of approximately 700.
A regional shopping center in Miami Gardens with an area of 105,895 square feet on 13.3 acres of land has also been targeted by its lender, BB&T, who filed a $30.3 million legal action to foreclose on the property. In addition, BB&T is busy in the area with other large properties, notably the Skylake Medical Plaza, also in Miami Gardens. This is a 65,071 square feet office building on 2.66 acres, located at 1380 N.E. Miami Gardens Drive, with an assessed value of $9,161,500. The amount of BB&T's complaint is $8.7 million. Another area headache for BB&T is a $2.9 million loan on an office condo building at 12955 Biscayne Blvd. Of the original 27 units, only six have sold so far.
Hotels are having their share of pain as well. U.S. Bank filed to recover $18.4 million borrowed against two Marriott hotels, the TownePlace Suites Miami Lakes and the TownePlace Suites Miami Airport in West Doral. The first, located at 8079 N.W. 154th St. has a building area of 28,418 square feet on two acres of land and was built in 1999. It has a taxable value of $5,063,444. The latter, at 10505 N.W. 36th St. was also built in 1999, has 29,556 square feet on 1.81 acres, and is assessed at $5,739,337.
Many major residential developments are also in trouble. Among the most current events is a Wachovia Bank action for $4.7 against three residential projects in Miami-Dade County: two in western Kendall and one in Homestead. Another recent episode was the favorable resolution of a $30.8 million foreclosure lawsuit filed by Ocean Bank in 2008 over Pebble Walk Village, an 16-acre site at the Florida Turnpike and N.W. 41st St. in Doral. Construction never started on the site, slated for a mixed commercial/residential development.
These are buying opportunities that will not be around forever. At this time, every investor, large or small, individual or institution, can find the chance of a lifetime in Miami commercial real estate.
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