MIAMI, FL, June 12, 2012 — After a decline in commercial real estate foreclosures in February, South Florida activity spiked in March, according to data provided by Off-Market RADAR, the only source for direct contact information to decision-makers on commercial real estate transactions.
A total of 39 CRE foreclosures above $250,000 were filed in Miami-Dade and Broward counties in March and April. March saw the highest amount of activity with 24 filings, compared to only 17 in February.
The April figure dropped again with 15 foreclosures reported. Although April’s decline sounds positive on the surface, further analysis of the types of foreclosures filed may warrant concern among investors.
Of the 17 February filings, Off-Market RADAR tracked only three above $2 million. Meanwhile, in March seven foreclosures above $2 million were filed, and then again in April, seven foreclosures were tracked.
“While the number of foreclosures has not drastically increased in Miami-Dade and Broward County, the number and percentage of larger deals is accelerating,” explains Brian McCarthy, vice president and co-founder of Off-Market Radar.
“From February through April, the average number of CRE foreclosures above $250,000 was 19 and the average number over $2 million was 4.4.
" Although activity from November 2011 through February was relatively mild, foreclosures in March and April doubled, with April’s share of $2 million-plus transactions comprising nearly half of all commercial foreclosures over $250,000.”
Multifamily assets accounted for the majority of foreclosures above the $2 million mark during March and April.
Four real estate assets in South Florida in the month of March alone were foreclosed upon, a record high since Off-Market RADAR began tracking transactions in September 2011.
“Of the major CRE sectors, the apartment market remains the most active in South Florida,” says McCarthy. As for the most active lenders in March and April? They were BankAtlantic, BB&T, Banco Cafetero and Synovus.
“There are a lot of maturities on the horizon,” says McCarthy, “We really see lots of investors chomping at the bit to scoop up deals this year before they hit the auction block in 2013 or beyond,” says McCarthy.
“Now that banks are generally better capitalized, the losses they have been ignoring over the past couple of years are going to start hitting the books and at that point, there’s not a huge reason for them to wait for the drawn-out foreclosure process to play out,” adds McCarthy.
Off-Market RADAR tracks foreclosures, loan sales, mortgages, deeds, CMBS loans and other transactions in Miami, Fort Lauderdale, Orlando, Jacksonville and Tampa Bay. The Atlanta-based firm utilizes information from public records as well as its own, independent research. By year’s end, the firm plans to add the top 10 primary metros in the United States to its service area.
The goal of Off-Market RADAR is to relentlessly pursue transparency of commercial real estate information to drastically increase the efficiency of the market, drive down transaction costs, and increase transaction probability.
For more information, contact Brian McCarthy at 404.939.7256.
