• Blog
  • CMBS
  • The Billions in CRE Financing That the 2018 Hurricane Season Has Put at Risk

The Billions in CRE Financing That the 2018 Hurricane Season Has Put at Risk

Florence and Michael, the season’s two most destructive hurricanes, not only caused death and devastation across the Southeast, but also put billions of dollars in commercial real estate financing in the Carolinas and Florida at risk.

Florence made landfall as a Category 1 hurricane on September 14 and caused more than 50 deaths across North Carolina, South Carolina and Virginia, while Michael slammed the Florida Panhandle as a Category 4 storm on October 10 and caused some 45 deaths across several states.

Prior to Michael’s landfall, Moody’s Investor Service identified $4.4 billion of commercial mortgage loans secured by 543 properties, mostly retail and multifamily, as being under  threat. Looking at securitized commercial mortgages, Morningstar found 211 properties backing $1.2 billion to be in the storm’s path.

With climate scientists warning of an increase in hurricane activity, hurricanes continue to be a serious risk factor for real estate owners, developers and lenders, as well as investors with exposure to properties in hurricane-prone parts of the country.

Florida Lenders at Risk

CrediFi data shows that from 2015-2018, the biggest commercial real estate lenders in Bay County, Florida, one of 35 counties placed under a state of emergency when Hurricane Michael was approaching, include CBRE, Walker & Dunlop and Home BancShares, the Arkansas-based holding company of Centennial Bank.

This year’s Bay County loans include a $33.7 million Freddie Mac loan originated by Walker & Dunlop in January for Ashley at Breakfast Point, Coastal Ridge Real Estate’s 360-unit luxury apartment complex at 9700 Panama City Beach Parkway in Panama City Beach. The loan matures in January 2028.

After Hurricane Irma in 2017, Morningstar identified $26.6 billion of securitized commercial mortgages in Florida as being at risk. Irma is estimated to have caused as much as $65 billion in insured and uninsured losses for residential and commercial properties across five states.

Which South Florida lenders have the most CRE exposure? View the Miami 2018 lending report.

Impact of Hurricane Florence

In the wake of Florence, Morningstar Credit Ratings said some $1.49 billion in securitized commercial mortgages were potentially at elevated risk because of major damage, mainly in North Carolina’s Cumberland and New Hanover counties, with combined exposure of $1.05 billion.

Though the investment research company did not expect waves of loan defaults as a result of Florence, it said flood damage could prevent some existing loans from being refinanced and jeopardize the payoff of roughly $51.5 million in securitized loans that mature over the next 12 months.

Since 2011, some 1,383 commercial-backed loans valued at $20 billion have been underwritten in the area ravaged by Florence.

And the hurricane season isn’t over yet.

“The National Hurricane Center has plopped an ‘X’ on the map and a cone that shows a disturbance out in the Atlantic that, if you extrapolate the cone way, way outward, takes it on a path toward Florida,” the Miami Herald reported Saturday.

The hurricane center said over the weekend that the disturbance was located east of the Lesser Antilles and “has a low chance of forming into a tropical or subtropical cyclone over the SW Atlantic Ocean” in the middle of this week.

The Atlantic hurricane season ends Nov. 30.

See which South Florida lenders have the greatest number of CRE loans at risk. View the Miami 2018 CRE lending report.

Related stories:

Florida’s BankUnited Waves Goodbye to ‘Terrible Margins’ of NY Multifamily Market

The Two Boston Real Estate Trends Highlighted by This CRE Loan

How We Analyzed Bank OZK’s Real Estate Lending

Close Menu

book your personalized
cre data consult today.

Gain access to CRE finance data on 6M properties & 4M loans.

















Request a CrediFi
demo today.

Gain access to CRE finance data on 6M properties & 4M loans.

















increase your lending
opportunities.
speak with a credifx
representative today.





increase your lending
opportunities.
speak with a credifx
representative today.





request a credifi
demo today.

Gain access to CRE finance data on 6M properties & 4M loans.





request a credifi
demo today.

Gain access to CRE finance data on 6M properties & 4M loans.





Book your personalized
CRE data consult today.

Gain access to CRE finance data on 6M properties & 4M loans.





increase your lending
opportunities.
speak with a credifx
representative today.





increase your lending
opportunities.
speak with a credifx
representative today.





decure the financing
you need.





secure the financing
you need.





how would you like
your cre data
delivered





request a credifi
demo today.

Gain access to CRE finance data on 6M properties & 4M loans.





Book your personalized
CRE data consult today.

Gain access to CRE finance data on 6M properties & 4M loans.





Book your personalized
CRE data consult today.

Gain access to CRE finance data on 6M properties & 4M loans.





request a credifi
demo today.

Gain access to CRE finance data on 6M properties & 4M loans.





Book your personalized
CRE data consult today.

Gain access to CRE finance data on 6M properties & 4M loans.





request a credifi
demo today.

Gain access to CRE finance data on 6M properties & 4M loans.





How would you like
your cre data
delivered





Book your personalized
CRE data consult today.

Gain access to CRE finance data on 6M properties & 4M loans.





Book your personalized
CRE data consult today.

Gain access to CRE finance data on 6M properties & 4M loans.





Book your personalized
CRE data consult today.

Gain access to CRE finance data on 6M properties & 4M loans.





Book your personalized
CRE data consult today.

Gain access to CRE finance data on 6M properties & 4M loans.





Book your personalized
CRE data consult today.

Gain access to CRE finance data on 6M properties & 4M loans.

















Request a CrediFi
demo today.

Gain access to CRE finance data on 6M properties & 4M loans.

















book your personalized
cre data consult today.

Gain access to CRE finance data on 6M properties & 4M loans.

















We track over
10,000 CRE lenders.
What data would
you like to demo?

















book your personalized
cre data consult today.

Gain access to CRE finance data on 6M properties & 4M loans.

















Request a CrediFi
demo today.

Gain access to CRE finance data on 6M properties & 4M loans.

















Request a CrediFi
demo today.

Gain access to CRE finance data on 6M properties & 4M loans.

















Request a CrediFi
demo today.

Gain access to CRE finance data on 6M properties & 4M loans.

















Request a CrediFi
demo today.

Gain access to CRE finance data on 6M properties & 4M loans.

















Book your personalized
CRE data consult today.

Gain access to CRE finance data on 6M properties & 4M loans.

















Book your personalized
CRE data consult today.

Gain access to CRE finance data on 6M properties & 4M loans.





Request a CrediFi
demo today.

Gain access to CRE finance data on 6M properties & 4M loans.

















Discover new opportunities.
Speak with a CredifX representative today.





Increase your lending opportunities.
Speak with a CredifX representative today.





Demo our up-to-date
ownership & contact
information.





We track finance data
on all U.S. markets.
Which market's CRE data
would you like to demo?





We track over
10,000 CRE lenders.
What data would
you like to demo?





Request a CrediFi
demo today.

Gain access to CRE finance data on 6M properties & 4M loans.





Request a CrediFi
demo today.

Gain access to CRE finance data on 6M properties & 4M loans.





Find the lenders who
give you the best terms –
not just the ones you
already know.

Gain access to CRE finance data on 6M properties & 4M loans.





Secure the financing
you need.





Request a CrediFi
demo today.

Gain access to CRE finance data on 6M properties & 4M loans.





Book your personalized
CRE data consult today.

Gain access to CRE finance data on 6M properties & 4M loans.





View Madison Realty
Capital's lending profile,
documenting recent loan,
owner and property information.





How would you like
your CRE data
delivered?





Demo our up-to-date
lender, owner & contact
information.





Demo our up-to-date loan,
ownership & contact
information.





Book your personalized
CRE data consult today.

Gain access to CRE finance data on 6M properties & 4M loans.





Request a CrediFi
demo today.

Gain access to CRE finance data on 6M properties & 4M loans.





Book your personalized
CRE data consult today.

Gain access to CRE finance data on 6M properties & 4M loans.





Alex Veksler

Head of Content

Alex Veksler has 16 years of finance, data analysis and project management experience. He is a former vice president at Morgan Stanley, where he worked on product control of equity and fixed-income derivatives products as well as various projects involving finance and technology, such as revamping risk attribution and balance-sheet systems for profits and losses. Alex has previously worked at hedge funds, most recently as a director at Exigent Capital. He has a bachelor’s in computer science from Yeshiva University and an MBA from New York University.

Ely Razin

CEO

Ely Razin founded CrediFi in 2014 with Battery Ventures. A rare combination of seasoned corporate executive and technology entrepreneur, Ely previously served as global head of board governance for Thomson Reuters Accelus and head of business law for Thomson Reuters, after the software company he founded was acquired in 2004. The company, Expert Ease Software, developed AI-based software that automatically summarizes key deal terms for transactions in fields including capital markets, M&A and real estate. Ely began his career as a corporate and securities lawyer, and holds an LLB and MBA from York University.

Frank Muhlon

Head of Transactions

Frank Muhlon oversees CredifX, the commercial real estate financing marketplace that mines the CrediFi database at its core. Prior to joining CrediFi, Frank served as vice president of Northeast region business operations for online CRE property trading platform Ten-X, which has closed over $40 billion in transactions since its inception. He has also held key positions at Orix USA/Houlihan Lokey, Silverstein Properties and Trammell Crow Company. Frank received his master’s degree in real estate finance from New York University and his bachelor’s in finance from Rutgers University.

Charles Mctiernan

Head of Sales

Charles Mctiernan comes to CrediFi from Ned Davis Research Group and Roubini Global Economics, where he was the global head of sales. He also spent more than 10 years at Reuters America Holdings, where he held a number of senior sales leadership roles, including head of solutions sales and head of global accounts. Charles, who received his bachelor’s in economics from East Carolina University, has more than 25 years of experience in technology, data and research sales.

Amichai Levy

VP R&D

Amichai Levy is the former VP of R&D at Israeli high-tech firm Payoneer, where he developed its signature cross-border payment platform and integrated it with existing bank technology. In his prior role at Ness Technologies, Amichai was a key player in developing an electronic case filing system for Israel’s courts. He has over 20 years of experience in software engineering.

David Fajgman

Head of Finance

David Fajgman brings over 14 years of financial and managerial experience to CrediFi. Prior to joining the CrediFi team, he served as finance director of Bioness Neuromodulation Ltd., which develops and manufactures medical devices involved in neurological rehabilitation. He has previously worked in multiple finance roles at Thomson Reuters and as an accounting and consulting manager at Ernst & Young, where he was responsible for a wide range of clients, including companies listed on the Nasdaq and privately held high-tech companies. David is an Israel-licensed certified public accountant and has a bachelor’s degree in business and accounting.

Liat Bar David

Head of Human Resources

Liat Bar David has over nine years of human resources experience, primarily focused on the high-tech industry. She is a former HR business partner at semiconductor solutions provider Broadcom, where she was responsible for onboarding processes, benefits, policies, training and development, performance management and employee retention. Liat holds a bachelor’s in communication and human services and a master’s in human resources and services, both from the University of Haifa.