D-FW commercial foreclosure postings up 39% in a year
Foreclosure postings filed on commercial real estate in the Dallas-Fort Worth metro area are at their highest point in 19 years, according to Foreclosure Listing Service, with postings up 39% compared to the first 11 months of 2009. From January through Tuesday’s November foreclosure auctions, 3,029 postings have been filed on commercial properties in D-FW compared to just 2,173 for the year-ago period. The postings include all types of commercial real estate, including retail centers, office buildings, warehouses, apartments and commercially zoned land. (Click on chart to expand.) “Although this is the highest volume of commercial postings that I have seen in almost two decades, it comes no where near the level that I saw back in 1988, when the all-time record high was set with around 8,000 total commercial postings filed in that year,” said George Roddy, president of Dallas-based Foreclosure Listing Service. For the year, Roddy said he expects commercial foreclosures in D-FW to reach 3,300. The real estate crash of the late 1980s included significant amounts of signature properties, Roddy said. "Although I am seeing some Class A properties posted, the vast majority of the commercial properties posted for foreclosure in today’s market are either Class B or C properties or miscellaneous commercial buildings," he said. “Like so many of the residential loans today, many of the commercial loans in the 1980’s were made with little or no money down, little or no personal liability, and many were upside-down,” he said. Since then, commercial lenders have implemented more stringent guidelines and current postings are fueled more by the economic downturn then questionable lending practices. Roddy said it’s also important to note that just 25% to 35% of those commercial properties posted for foreclosure actually get auctioned, with most of those going back to the lender. One of the biggest foreclosures of the year was the Four Seasons Hotel & Resort in Irving, which involved delinquency on an original mortgage of more than $180 million. It was repossessed by the lender earlier this year. Write to Kerry Curry.