Multifamily Sours the Southern Horizon

Within the South Florida region, troubled assets are most prevalent in Miami, which accounts for more than 60% of distressed property by dollar volume, the remainder is split almost evenly between Palm Beach and Broward counties.

In Miami and the greater South Florida region, development projects have contributed to some of the greatest distress, led by a handful of hotel deals and several failed residential projects and condo towers. Icon Brickell, a massive three tower mixed-use project tops the list of troubled developments in the region, with an estimated $700 million in past-due construction loans. The lender on the condo portion of the project has reportedly opted to continue sales on a one-off basis rather than selling units in bulk at deeper discounts and writing down significant losses immediately.