South Florida banks facing a new wave in real-estate crisis

The long recession and a severe credit crunch are strangling commercial real estate, putting strain on already-battered Florida banks.

BY MARTHA BRANNIGAN

Just as the housing market is showing signs of life, here comes another real-estate crisis.

Squeezed by plunging rents, empty storefronts, the credit crunch and a dearth of buyers, a growing number of commercial property owners are defaulting on their loans, which could unleash a new wave of bank failures and slow the region’s economic recovery.

“What we’re seeing so far in commercial real-estate [foreclosures] is just the tip of the iceberg,” said attorney Lee D. Mackson, who represents creditors who filed a foreclosure suit against Biscayne Landing, a stalled project on Biscayne Boulevard in North Miami. “There’s going to be a lot more.”

Florida’s home-grown community banks are heavily into commercial real-estate loans — for office buildings, shopping centers, hotels and condos.

An exclusive analysis for The Miami Herald found that Florida banks have twice the proportion of commercial loans in their portfolios as banks outside the state.

As a result, Florida banks may have to weather the worst of the commercial real-estate meltdown.

A major sign of the festering problem came on Friday, as federal regulators seized Chicago-based Corus Bank, which has been a big lender in South Florida. The bank was brought down by heavy lending in commercial real estate and construction.

The potential impact of the downturn goes far beyond the individual tragedy of a lost business or the jobs that disappear when a single project fails.

Anemic banks are in no condition to lend. And solid banks and other lenders may become even more wary of providing money to start new projects or even refinance loans as they reach maturity, as is common practice.

For consumers, mortgages, home equity loans and lines of credit could dry up even more.

“It’s another pretty heavy hit to an already hard-hit banking sector,” says Sean Snaith, an economist and director of the Institute for Economic Competitiveness at the University of Central Florida. Commercial real-estate problems, he says, “could prolong the credit crisis and make it difficult for all sorts of borrowers to get the loans they need — consumers, homeowners and small businesses.”

According to the analysis by Charlottesville, Va.-based SNL, a data-crunching firm, more than 53 cents of every dollar loaned by Florida-based banks goes for commercial real estate, compared with 24 cents per dollar among other U.S. banks.

At mid-year, 11.2 percent of the commercial real-estate loans at Florida banks were delinquent, compared with 7.5 percent at banks outside Florida. And Florida banks have far less set aside to absorb bad loans.

“We not only see `For Sale’ and `Foreclosure’ signs in our neighborhoods, but `For Lease’ and `Vacancy’ signs along Dixie Highway,” says Ken Thomas, a Miami bank analyst. “Prime corner and other retail locations in the best shopping areas from Dadeland to Aventura to Boca are now vacant.”

To be sure, the nation’s biggest banks and Wall Street are also facing a potentially heavy toll from the commercial real-estate downturn.

Among the prominent projects tangled in recent foreclosure suits are the Las Olas Centre in downtown Fort Lauderdale and Biscayne Landing, the latter envisioned as a massive residential and commercial project that was to be the key to revitalizing the city of North Miami. Except for two soaring towers, Biscayne Landing never got off the ground. Instead, it ended up as a bad debt included in securities sold on Wall Street.

Enter Miami Brickell Condos and Real Estate Website

Share
Tagged with:
 

Brickell Condominium Real Estate
Luxury Brickell condominiums, hotels, and the tallest building in Florida ( the Miami Four Seasons) are transforming Brickell and Brickell Avenue’s skyline into a new upper scale and chic neighborhood . Brickell is becoming popular with residents that are enjoying dining in the fine restaurants and shopping in the new neighborhood boutique stores. With South Beach only minutes away, many are finding a Brickell condominium lifestyle to be a sophisticated alternative to South Beach living. Many new real estate pre-construction condominium projects are flourishing within this area. Popular condominiums include: Atlantis on Brickell, Brickell Bay Club, Brickell East, Brickell Key I – II , Brickell Place I – II, Brickell Townhouse, Bristol Tower, Four Seasons, Isola Brickell Key, Courts Brickell Key, Courvoisier Courts at Brickell, Asia Brickell Key Condo, Carbonell Condo Brickell Key, Imperial on Brickell, Skyline at Brickell, Fortune House, Tequesta Point & Santa Maria. Brickell Condos real estate is one of the fasted growing in the greater Miami area.

Brickell Key Condos
All Brickell Key Condos by name with complete inventory of condominiums for sale and lease – Advanced search of all available Brickell key condominiums listing

Brickell Avenue Condos
All Brickell Avenue Condos for sale or lease. Brickell condos listings and condominium and area information for Brickell Miami

Asia Brickell Key
Asia Brickell Key offers the very best in luxurious architecture and lifestyle in Miami, The Asia condominium is under construction for more information about available condo units for sale please contact us.

Atlantis on Brickell
The Atlantis on Brickell Condominium – 2025 Brickell Ave, Miami. Fl. 33129 Atlantis Brickell Miami, amenities and condo listings.

Brickell on the River Condo
The Brickell on the River Condominium is a luxury waterfront tower located at 31 Se 5 St Miami, FL. 33131 See Condo listings for Sale or Lease Rental at the Brickell on the River condo Miami Florida

Brickell on the River Condo Floor Plans
Brickell on the River is a 46-story high-rise that overlooks the Miami River Brickell on the River key Condo floor plans for the North Tower

Courvoisier Courts Condo Brickell key
The Courvoisier Courts condo at Brickell Key – 701 Brickell Key Blvd, Miami. Florida 33131 Courvoisier Courts condominium – see all available condos for: Sale Lease

Courvoisier Courts condominium floor plans
Courvoisier Courts Condominium at Brickell Key offers a large variety of unique living spaces to ensure the right fit for your needs and personality. Choose from over ten original floor plans appointed with fine architectural detail.

Brickell Key One Condo
The Brickell Key One condominium located at 520 Brickell key Drive, Miami. FL 33131. See all condos for sale or lease rental at Brickell Key One.

Brickell Key Two Condo
Condominium for sale or lease at Brickell Key two – 540 Brickell Key drive, Miami. Florida 33131

Carbonell Condo Brickell Key
The Carbonell Condo Brickell key – 901 Brickell key Blvd Miami, FL 33131. See all available condo listing for sale or lease at the Carbonell condominium at Brickell key

Carbonell Miami Floor Plans
The Carbonell Condo Miami Brickell key see floor plans and Carbonell condo home page

Courts Condo Brickell key
The Courts Condominium at Brickell key means fabulous living, 801 Brickell Key Blvd. Miami, FL 33131 for sale and lease at the courts condo brickell key miami.

Courts Brickell Key Condo – Floor plans
Courts condominium Brickell Key floor plans, condo key plan

Isola Condo Residences Brickell Key
The Isola condominium Brickell Key located at 770 Claughton Island Blvd. Miami, Fl. 33131. See available Isola Condo Brickell Key listing for sale or lease

One Tequesta Condo Brickell Key
Tequesta One Brickell Key – 888 Brickell Key Drive Miami, Fl.33131 sale or lease at the One Tequesta Point condominium at Brickell key

Two Tequesta Point Condo Brickell Key
Tequesta Two Brickell Key 808 Brickell Key Drive, Miami. Florida 33131. View all available condo listing for sale or lease at the Two Tequesta Point condominium at Brickell key

Three Tequesta Point Brickell Key Condo
The Tequesta Point Three condominium is located at 848 Brickell Key Drive on Brickell Key near Brickell Avenue and Downtown Miami. See all Three Tequesta condo Listing for sale or Lease.

St Louis Condo Brickell Key
The St Louis condominium at Brickell key located at 800 Claughton Island Dr. Miami, Fl. 33131. See all condo listing for sale or rent and lease.

Mandarin Residences condominium Brickell key
The Mandarin residential condo at Brickell Key coming soon ! The Mandarin residential condominium will be the last Preconstruction condo to be build in Brickell Key.

Mandarin Oriental Brickell Key
Mandarin Oriental Miami Luxury hotel/Full service Mandarin Oriental, Miami is one of Americas finest hotels. Ideally located on prestigious Brickell Key,

Search South Florida MLS
Search for all available homes/condos in South Florida, Miami, Brickell Key, Brickell Avenue, Coral Gables, Coconut Grove.

Bristol Tower condo Brickell
Bristol Tower condo Brickell stunning 40-story building superbly located on Brickell Avenue, condo listings for sale and lease – Bristol Condominium in Miami Florida

Icon Brickell Condo
The Icon condominium on Brickell Miami. Tower one two three see condos for sale at the Icon Brickell

Infinity Condo at Brickell
The Infinity condominium in Brickell Miami. Tower one and two see condos for sale at the Icon Brickell

Villa Magna Brickell Condo
The Villa Magna Condo on Brickell. See Villa Magna Details. Project has been cancelled.

Metropolitan Brickell Condo
The Metropolitan Brickell Condominium – 2475 Brickell Avenue, Miami. Fl 33129. See all Metropolitan condos for sale and apartments for lease, condo information, floor plans and website.

Brickell Vista Condos
Brickell Vista by Astor Development Group brings you stylish ready to move in, one and two bedroom residences starting from the mid $200’s.  Condos for sale and Apartments for lease, condo information, floor plans website

Avenue on Brickell Condos – 1060 Brickell
The Avenue on Brickell located right on Brickell Avenue. View all information about 1060 Brickell condos for sale and lease, condo information, floor plans website

Wind By Neo
Wind By Neo Condominium – Rising 41 stories, WIND is set against a Miami skyline backdrop in the exclusive River Front. Condos for sale and apartments for lease, condo information, floor plans website

Brickell Key CMA – Comparative Market Analysis
Prior to selling your property, it is essential that you are informed about condos with similar features as yours that have sold recently within Brickell Key

Coconut Grove Condos for Sale
Coconut Grove Condos for Sale or lease – Many condos are also very close to the heart of Coconut Grove shopping and nightlife. Apartments and other real estate listings.

Coral Gables Condos
The Coral gables condos, Avant Realty International is specializing in the Coral Gables condos real estate market see Coral Gables condominiums for sale and rent

Grovenor House Coconut Grove
The Grovenor House Coconut Grove condo listings for Sale and lease, Grovenor House Condominium Miami web site condo information and floor plans

Grovenor House Condominium Floor Plans Coconut Grove
The Grovenor House Condominium in Coconut Grove see floor plans condo information.

Share
Tagged with: