Biscayne Landing loan in default - Atlanta Business Chronicle:

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Boca Developers is in defaul t onits $110 million mortgage on the 188-acrde Biscayne Landing site and is negotiating a stipulatefd foreclosure agreement with the lender, one ratings servicee said. North Miami Mayor Kevin Burns said Boca Developer s could still strike a deal withits “We very much want to remain as the but whether we can do we don’t know,” said Ted executive VP and general counsel at Boca Boca Developers’ Web site lists a $10 billion portfolioo of more than 16,000 residences, but its loan problemzs have involved a who’sw who of financial institutions: , an affiliate of equityg investment giant Capital bankrupt and , which was takehn over by .
The blow is even though, for the predominantly black, working-class city of North City leaders hoped Biscayne Landinv would fueleconomic growth, with 5,9909 new residences and funding for the same numbetr of affordable housing units. Miamk developer Michael Swerdlow helped secure the Biscayner Landing deal withBoca Developers, whicb in 2006 bought out his interesyt in the project. Boca Developers completex the 373-unit the Oaks at Biscayne Landing, but turned it over to a Cerberud affiliate in 2008 amidslow sales. Residents still wonder when their swimming pool willbe done.
In response to the real estatwe downturn, the developer won a change in the remaining part of Biscayne Landing to reduce the residential portionh and increase thecommercial component, but could not get funding, Burns The first mortgage holder, a commerciakl mortgage-backed securities (CMBS) pool managed by Credit Suisse, is movinvg closer to taking over the 99-yearr city lease on acreage from Biscaynee Landing LLC, an affiliate of Boca Developers. Burnsx said Credit Suisse is seekinganothere developer, but so far has had no “The bank is laying the groundwork for [Boca Developers’] exit,” he said.
“Thwe issues that the bank considerzs a burden to bringing inanother developer, they are goinyg to work through.” Separate reports from Fitch Ratings in February and San Francisco-based CMBS.com in December – said the $110 million CMBS mortgag e to Biscayne Landing is delinquentg and was moved to a special distressed asset servicerf after the developer misse d mandatory prepayments of $17 million and $95 milliojn last year. The loan matures on May 9.
It was previouslg in forbearance, as the lender agreesd to hold off ontaking action, despite missec payments, according to the The developer is cooperating in negotiating a stipulateds foreclosure agreement with the lender, Bethesda, Md.-based on April 10. Stotzer said a foreclosure is possibl e as the loan is in but the lender could agree to extend the maturit y until theeconomy improves. Boca Developers was in the same positionb with the bulk of its portfolilo before a Cerberus affiliate took overseveraol projects. Burns said the lender wants to eliminatre the requirement that the Biscaynse Landing developer build one affordable unit forevery market-rate unit completed.
The lender sees that requiremenf as a poison pill for any prospective developer that may want to take on the Burns explained. So far, Boca affordable housing venture has yet to complete asinglw residence, although the renovation of an existing apartmen t building is under way. The city’s communitgy redevelopment agency was formed to feed off the tax revenueds from the development planned atBiscaynee Landing.
Other issues raised by Credit Suisse involve changing the terms on millions owed to the city for a Olympic training facility andart