Arizona banks and hard money lenders in the commercial real estate industry have been watching their assets carefully entering 2024. Here’s a recap from the Total Lender Solutions nonjudicial foreclosure team of how the Arizona commercial market is faring in terms of properties in foreclosure to begin the new year.
Arizona Commercial Foreclosures By the Numbers
As we entered January, PropertyRadar.com data showed its active Arizona commercial foreclosures to be 171. The biggest concentration of commercial real estate foreclosures was located in and around these three cities:
- Phoenix (90)
- Tucson (40)
- Flagstaff (12)
Total Lender Solutions helps hard money lenders and financial attorneys in Arizona with nonjudicial foreclosure processing. Learn about our foreclosure process, and contact our team if you are facing a defaulted borrower.
Phoenix Commercial Foreclosures
Phoenix, the state’s most populated metropolitan, led the way with 90 of the 171 Arizona commercial foreclosures.
The largest properties range from 48,953 to 117,023 sq. feet.
The Park at the 25th, which spans 117,023 sq. feet is a 42-year old corporate office building spanning four floors on more than six acres with ample parking. The zoning is A-1, light industrial.
“The largest active commercial foreclosure in Phoenix is typical of what we see – four-story commercial business offices that have fallen victim to the changing landscape of our workplace culture,” said Randy Newman, founder of Total Lender Solutions.
Tucson Commercial Foreclosures
In the southern part of the state, we see similar activities. The largest Tucson properties in foreclosure range from 17,280 to 456,114 sq. feet.
Standing at nearly a half-million sq. feet, the Park Place Mall is a 41-year-old shopping center and contains a mix of both big box and small boutique retail as well as dining.
The assessed value of the mall is nearly $5,000,000.
“Retail is another sector where we are seeing areas of trouble, especially with large-scale commercial properties. When we see retail properties move into the foreclosure process, it’s both indoor and outdoor malls that are most common,” said Newman.
Flagstaff Commercial Foreclosures
The northernmost part of the state, Coconino County, which includes communities like Flagstaff and Sedona, headed into 2024 with 12 active foreclosures.
The largest commercial building among the foreclosures was a resort in Sedona, with nearly 25,000 sq. feet and a lot size of 137,000 sq. feet. The assessed value is $3,000,000, with an outstanding loan balance of nearly $16,000,000.
“Hard money lenders are often surprised that resort commercial properties can often have the same instability as retail or corporate office commercial real estate,” said Newman.
When to Start an Arizona Commercial Foreclosure
If you are a lending institution or you serve as an financial attorney for a lender and you’d like to discuss starting the Arizona commercial foreclosure process connect with us. Our team is intimately familiar with the nonjudicial process in Arizona. We work as an extension of lender teams looking to maximize recoveries on defaulted loans. We transform the complicated process of foreclosing commercial real estate into clear resolutions for institutional and private lenders.
Fill out a form today, and let us assist you.
