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Corus Loan Sale Likely to Reset Prices

MIAMI-The Chicago bank's failure may help jump-start the South Florida condo market.

By Paola Iuspa-Abbott | Updated on October 07, 2009

(This story, in slightly different form, originally appeared in ALM’s Daily Business Review.)

MIAMI-Commercial real estate veterans predict the sale of loans held by failed lender Corus Bank could further batter South Florida’s new condo market, ushering in a deeper price correction needed before the condo market can begin a road to recovery.

The Miami area has one of the nation’s largest concentrations of condo projects financed by Corus–about $1 billion. If the buyer of the Chicago-based bank forecloses on the nonperforming loans and unloads the underlying condo units at fire-sale prices, it could drive the value of South Florida condos to new lows, experts predict.

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