Editor’s Note: It is pretty startling that 25% of all commercial multi-family loans in Jacksonville are 60 days of more behind on their mortgage payments. According to a CB Ellis analyst, most of these properties were financed during the height of the housing bubble. Either money will need to be brought for refinancing or we will see more defaults and foreclosures to get market prices for commercial real estate to a reasonable valuation.
Business Journal (FL) - More than one-quarter of all multifamily loans in Jacksonville financed with commercial mortgage-backed securities are 60 days or more delinquent, according to the commercial real estate information provider Trepp LLC.
Those properties, which have a total loan balance of $552.6 million and a delinquent balance of $144.8 million, include 13 apartment communities. Wellington Place apartments on 1863 Wells Road in Orange Park tops the list with a loan balance of $23.5 million, followed by the Mission Springs Apartments at 5327 Timuquana Road on the Westside with a loan balance of $21.4 million.
The other apartment communities on the list are the River Oaks Apartments, Waters Edge Apartments, Heritage on the River, Princeton Square Apartments, Gregory Cove Apartments, Waters Inlet Apartments, San Marco Village Apartments, Grande Oaks Apartments, Oak Creek Apartments, Southpoint Place Apartments and Art Museum Apartments.
Dhaval Patel, a financial analyst at CB Richard Ellis Group Inc. said most of the multifamily properties on the list were bought or refinanced at the height of the market with aggressive assumptions.
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