Seattle Area Tops U.S. In Share Of Troubled Real Estate Loans
Seattle Business Journal reports: Seattle's distress came on quickly. In mid-2008, the Seattle area ranked 39th among metropolitan areas in troubled loans. Now, the area ranks No. 1, with just under a third of all loans for land acquisition and all types of construction at least 30 days in arrears.
That’s double the national delinquency rate of 16.3 percent, according to Foresight Analytics, which bases the statistic on bank regulatory filings.
Tacoma is not far behind, ranking fourth, with a 28.9 percent delinquency rate.
Prominent local real estate developer Michael Mastro Sr.’s commercial and residential properties and development projects represent an increasing share of the Puget Sound area’s troubled assets. A recent report by Real Capital Analytics Inc. includes 15 of Mastro's properties, valued at $122 million, on its list of 54 troubled commercial assets in King County. Unlike Foresight Analytics, Real Capital does not include residential development in its troubled assets reports.
Mastro was forced into Chapter 7 bankruptcy this summer by three banks seeking repayment. One of those banks, Venture Bank, has since been shut down and sold by federal regulators.
View the full article on Seattle Business Journal: Seattle Area Tops U.S. In Share Of Troubled Real Estate Loans
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Posted by: Mark Alferman