Las Vegas, Nevada is still the lead city in commercial and foreclosed home list. For the first six months of this year, Las Vegas’ foreclosure filings grew by almost 56 percent compared with the same period a year ago.
Data showed that one out of 13 Las Vegas homeowners received a foreclosure filing from January to June, six times worse compared with the national average foreclosure filing ratio of 1 in every 84.
In the commercial real estate market, the city was given a brief relief from rising foreclosures over the summer. During the period, the number of commercial properties at risk of foreclosure declined slightly. However, the decline failed to budge Las Vegas from its number one position for distressed development and buildings.
Market data for August showed that the number of troubled assets in Las Vegas was pegged at 168, with a total value of $9.2 billion, a drop from the $9.4 billion in July and $9.7 billion in June.
According to industry analysts, the decline followed an increase of almost 52 percent in the number of distressed properties last spring.
They said that last month’s filing of Chapter 11 bankruptcy by Station Casinos is expected to change the current trend in the commercial real estate market. The bankruptcy filing is expected to boost the number of repossessed properties over $15 billion, with almost $6.5 billion courtesy of the Station Casinos.
They pointed out that taking the Station Casinos out of the equation, the value of troubled properties has stabilized.
Analysts said that lenders played a major role on the stabilization of distressed property values in Las Vegas. They noted that many lenders do not want to foreclose on distressed commercial properties and prefer to work out solutions. They added that lenders are even reluctant to file notices of default.
Out of the total distressed commercial properties in the city, nearly 10 percent or about $1 billion have been resolved, meaning they have been sold or refinance.
Out of the 168 distressed commercial properties with total value of $9.2 billion, $6.5 billion worth of properties were in trouble, $692 million have extended or restructured loans and $2 billion were foreclosed by lenders.
Development properties got the worst of the lot with a total distress value of $4.6 billion, followed by retail properties with $1.8 billion and hotels with $1.5 billion.
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