$150M CityPlace Loan in Special Servicing

FORT LAUDERDALE, FL-A $150-million mortgage loan backed by CityPlace, a 55-acre mixed-use development in downtown West Palm Beach, was placed in special servicing on April 23rd, according to the Daily Business Review .

The loan is collateralized by the 756,471-square-3foot mixed-use development consisting of a 626,012-square-foot, open-air shopping center, a 54-unit multifamily component and 56 loft-style office spaces totaling 72,556 square feet located above the ground level retail. Thus far, the property has not generated enough cash flow to cover the annual debt service.

The CityPlace mixed-use project opened in October 2000 to great fanfare after years of being in the works. It was the centerpiece of downtown West Palm Beach’s renaissance. Over 20 years ago, when the city first contemplated redeveloping the area, it was filled with rundown housing and was crime-ridden. Today, it is almost a city within a city full of upscale housing, class A office space and entertainment.