Posts (RSS)REO Property Listings Poised to Add a Victim in South Florida
Like a monster, the foreclosure crisis reared its ugly head once again in South Florida as it prepares to add the shopping center Parkland Commons on its REO property listings. The Bank of America has filed foreclosure proceedings against Broward County-based shopping center, Parkland Commons and its developers MPG Parkland and Prestige Group President Charles H. Monroe III.
The foreclosure lawsuit filed against Monroe is the third pending case against companies affiliated to him in South Florida. According to Monroe, he is willing and prepared to file a Chapter 11 bankruptcy to protect MPG Parkland and force a workout.
Monroe said that he hopes Bank of America will offer the property to another investor. He pointed out that banks are not willing to work out an agreement that will stop foreclosures.
Since 2008, the almost 90,000 square feet Parkland Commons has leased out only 65 percent of the shopping area to tenants, including Publix, Renaissance Wellness Day Spa and Mercantil Commercebank.
The shopping center is situated at Trails End and North University Drive in a 22.8-acre area that is partly undeveloped.
The foreclosure lawsuit filed by the Bank of America stemmed from MPG Parkland’s mortgage loan which was modified in 2007 at about $31 million. The lawsuit also named as defendant Trisail Funding Corp., a company that provided MPG Parkland a mortgage amounting to $4.3 million in April 2008.
Monroe explained that he stopped paying the interest of his Bank of America loan because he had difficulty leasing the shopping center’s space and the rental payments were not enough to cover the monthly mortgage.
He said that a potential tenant was interested in renting a space at Parkland Commons for a restaurant but the Bank of America refused to fund the improvements needed to prepare the space for occupancy. Thus, Monroe added, he could not start collecting rental fees because no development is taking place at the space that is to be rented.
Aside from Parkland Commons, Monroe is also a defendant in pending lawsuits of foreclosures filed by Wachovia Bank against Coral Landing III and by BankAtlantic against Quantum Village.
Last month, TW Plaza Holdings acquired the delinquent loan on Coral Landings II located in Coral Springs with a deed in lieu of foreclosure.
Prestige Group is also the owner of shopping centers located in North Miami Beach and Jupiter. Monroe said that the North Miami Beach facility is having a problem with its lender but is not yet in danger of being added to REO property listings.