Company Owned By Billionaire Miami Dolphins Owner Stephen Ross 90+ Days Delinquent On $150 Million CityPlace Loan
A company owned by Miami Dolphins owner Stephen Ross is currently 90 days delinquent on a loan for CityPlace according to the South Florida Business Journal.
The Related Cos. owned by Miami Dolphins owner Stephen Ross took out the loan in 2006.
Trepp LLC which monitors CMBS trusts reports that payments on the CityPlace loan were 90 days past due as of June. Consequently, Related Cos. approached the loan servicer seeking a discounted loan payoff, but the special servicer declined the offer.
There is no pending litigation between the lender and the owner of CityPlace on file with the Palm Beach County Clerk’s Office.
Brian Bandell quotes Related Cos. as saying, “CityPlace Partners proactively engaged the special servicer in an effort to seek flexibility from our lenders and ensure the long-term success of CityPlace.”
The CMBS trust had previously filed a foreclosure action against Related Cos. and CityPlace in 2011. The foreclosure lawsuit was resolved as a result of the two parties agreeing to a loan modification. The modification agreement included an interest rate reduction to 2.875% for four years. The interest rate increased to 6.27% in 2015.
CityPlace was appraised at $233 million when the loan was securitized in 2006 according to Trepp. Cityplace appraised for $143 million when Related Cos. modified the loan in 2011 due to the 2008 financial crisis.
CityPlace was developed as a revitalization project for West Palm Beach in the early 2000s. The center is currently 94.6 occupied with the largest tenants being Macy’s, Muvico Entertainment, Revolutions Patio, LA Fitness and Publix.