DCOTA Hit With $173M Foreclosure Lawsuit

Jun 13, 2019 No Comments by

The Design Center of the Americas (DCOTA) in Dania Beach is a subject of a $172.9 million foreclosure lawsuit.

The 777,330-square-foot facility at 1855 Griffin Road has 55 showrooms for architects, designers and furnishing dealers. It also hosts conventional office tenants.

Wells Fargo Bank, representing a commercial mortgage-backed securities (CMBS) trust serviced by LNR Partners, filed a foreclosure lawsuit in Broward County Circuit Court on June 4 against Design Center of the Americas LLC.

The complaint said the borrower defaulted by failing to repay the loan by the maturity date of Feb. 1, 2019. The lawsuit stated $172.9 million in principal is due, plus interest.

Cohen Brothers Realty Corp. owns and manages DCOTA but was not named in the lawsuit.

The loan was granted for $185 million in 2005. DCOTA was built on the 25.1-acre site in 1988 and the building expanded in 2000.

According to CMBS analysis firm Trepp LLC, the appraised value of DCOTA was recently downgraded to $115 million from $250.4 million when the loan was originated.

DCOTA was 64% occupied, according to the most recent information obtained by Trepp. The largest tenants include e-commerce firm Chewy, with 96,372 square feet; F. Schumacher & Co., with 18,882 square feet; and Chiquita Fresh, with 18,877 square feet.

The property generated $7.66 million in net operating income in 2018, according to Trepp. When the loan originated in 2005, its net operating income was $18.9 million.

Notes from special servicer LNR Partners, included in the Trepp report, state that negotiations with the borrower are ongoing as the foreclosure is pursued.


Source:  SFBJ




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