"The percentage is up, but the type of buildings is a good signfor the class A and class B buildings," says George Roddy Sr.,president of the Addison, TX-based watchdog firm. "It's certainlynot unexpected, given the tightening of credit and so forth."Residential foreclosure notices spiked to 46,277, up 31% year todate versus last year at this time and are predicted to hit 50,000by year's end.

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Roddy tells GlobeSt.com that commercial brokers have started toclosely monitor his lists because they have investors looking topark capital that they've siphoned from the stock market. "Lots andlots of investors are sitting on the sidelines. They are takingmoney out of the stock market due to the volatility," he says. "Thebrokers are quite interested in keeping up with potential deals.We've had a lot of calls in the last 60 days and in the past 30days, most particularly." Courthouse auctions will be held nextTuesday.

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Roddy says commercial foreclosure notices have been steadilyrising for "five or six months." For the second consecutive year,Tarrant County has exceeded Dallas County, which Roddy believes isthe outgrowth of the difference in prices for assets and land. "Insome degree that surprises me because Tarrant is generally behindin sales volume," he explains, adding that seemingly has changed inthe past 18 months. As a result, Tarrant is facing more foreclosurenotices these days--803 to Dallas County's 736. Collin Countypostings totaled 119 and Denton County, 125.

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More notices have gone up on miscellaneous buildings than anyother commercial asset. There have been 805 properties posted inthe category versus 604 last year. The mix included fivefreestanding restaurants, five churches and seven conveniencestores. Multifamily assets came in second with 321 notices whileland ranked third, 289. Industrial postings totaled 139; retail,121; and office, 108.

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Notices rose 40% for multifamily assets and land since lastyear. Industrial postings are up 35%; office, up 23%; and retail,22% higher.

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Roddy says two retail tracts in Frisco are "primo properties"although they aren't large. One is a 4.5-acre tract near thejunction of Dallas North Tollway and Platinum Drive, which wentback to its lender in August, and the other was a deed give-backfor 8.5 acres near Cotton Gin Road to erase a $4-million note.

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So far, the metro's largest office foreclosure was a 273,495-sf,13-story building at 12001 N. Central Expwy., which sold on thecourthouse steps for $18 million to Catalyst CCT LLC of LosAngeles. Roddy says the 24-year-old building was encumbered by a$28.7-million loan before the September sale on the courthousesteps.

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So far, foreclosure notices have been tacked up on pre-1970s'buildings, but Roddy says that could change as time passes. "We areseeing a softening in some markets in retail and office," he adds.In addition, loans will be coming due on many higher value assets,perhaps some pride of ownership deeds, which could translate intomore postings and ultimately foreclosures of newer properties. Hepredicts it could "start to pop" in second quarter 2009 unlesslenders start to "loosen up" so acquisition loans and refinancescan be had.

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Like others, Roddy says the North Texas market is in bettershape than other parts of the country to withstand the globalmeltdown. He believes the proof lies in his just-released analysis."If anything, the total was lower than we expected," he says.

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