Jacksonville Foreclosures Continue in Multifamily Sector

by Simon Lindsay on cities

Jacksonville foreclosures continue to rise in the residential sector, particularly in the multifamily subsector. Last December, a number of apartment and condominium buildings were taken back by their lenders.

In 2009, a total of 26,537 residential units in Jacksonville received default or foreclosure notices, marking an increase of 56 percent from the 17,025 foreclosures filed in 2008. About 4.5 percent of all homes in the metro area were in various foreclosure stages in 2009.

Statewide, a total of 516,711 residential units were put into foreclosure in 2009, representing 5.9 percent of all homes in the state. The 2009 foreclosures marked a 34-percent jump from filings in 2008 and a 212.6-percent increase from filings in 2007. In a ranking of states based on foreclosure rates last year, Florida ranked third.

In December, several condo units in a high-end condo complex along the Saint Johns River in San Marco were added to the bank owned home listing of CNL Bank. These units were being sold for $735,000 to $1.9 million before the repossession proceedings. Former owner C. Atkerson Inc. failed to pay its $8.3 million loan.

Jacksonville foreclosures could also have included two apartment complexes in the area last December, but the owners decided to voluntarily give back the properties to the lenders in place of foreclosure. The apartment complexes Gardens at Lakewood, located along Auburn Road, and Falcon Lake, located on the Northside, were taken back by the banks.

McGarvey Residential purchased the Gardens complex four years ago for $17.4 million and borrowed $13.3 million from AmSouth Bank, which later became Regions Bank. A loan balance of $8.6 million remained unpaid before the repossession.

The 440-unit Falcon complex was taken back by KeyBank National Association after former owner Falcone Group LLC failed to pay its $23-million balance from its $35.3-million loan in 2006.

In another report, released by the Associated General Contractors of America, a total of 5,000 construction workers in Jacksonville lost their jobs over the one-year period to November 2009. Construction jobs in the Jacksonville metro area dropped in November 2009 to 34,400, down from almost 40,000 in November 2008.

The loss represented 13 percent of total construction jobs in the area, increasing the number of households in difficult financial conditions and in danger of tax lien foreclosure and mortgage defaults.