Looming Stress For Real Estate Projects Across Charlotte Area
Charlotte Business Journal reports: The number of troubled commercial properties — offices, apartments, shopping centers, hotels and warehouses — in the Charlotte region is starting to stack up.
Industry research firm Real Capital Analytics has more than 60 local properties on a watch list of troubled assets. Some are saddled with maturing commercial mortgages. Others have owners that are either bankrupt or are in financial distress. Nearly half are development projects that are delayed or abandoned.
The projects range from Eastland Mall, stuck with darkened anchor stores, to The Park, the unfinished uptown condo tower that’s now owned by the developer’s lender.
Carolina Place mall, Sycamore Commons and Centrum shopping centers in Charlotte and Northlite Commons in Kannapolis are on the list, along with an empty big-box retail store on Sardis Road North.
So are seven hotels, part of a troubled portfolio of nearly 700 Extended Stay properties owned by a joint-venture of New Jersey-based Lightstone Group and The Chetrit Group of New York, and 10 apartment complexes.
The 1.9 million-square-foot Meridian Corporate Center in the University Research Park remains the biggest local property in default. Its owners and lender Hartford Life Insurance Co. are embroiled in a legal battle in N.C. Business Court over a delinquent mortgage debt, last estimated at $116 million.
New York-based Real Capital says the worst cases are where a lender has taken a property via foreclosure, an owner has gone bankrupt or a loan is in default. That describes seven commercial properties in the region, up from four in December, says Real Capital senior analyst Jessica Ruderman.
View the full article on Charlotte Business Journal: Looming Stress For Real Estate Projects Across Charlotte Area
Posted by: Nina Turner