RCA in the commercial property press:

Airport Hotel Auction Looms

Globe St. reports: Excluding vacant parcels, foreclosure auctions of large commercial properties have been rare during the current South Florida real estate downturn. Yet the number of commercial loans in default is growing, both nationally and across the region.

Delinquent loans on South Florida commercial real estate totaled nearly $1.8 billion in the second quarter, up from $1.5 billion in the first quarter, according to Real Capital Analytics, a real estate research firm. The $3.3 billion of troubled loans in the first half of 2009 is approaching the $4 billion in all of 2008.

Many owners, facing declining values and income and the sluggish credit market, have been unable to refinance debt. Many lenders, who are reluctant to foreclose on properties that could be expensive to maintain and operate, have tried to work out loan extensions or sell notes at deep discounts.