Corus Swept Up in Florida Condo Undertow

"Miami is [Corus'] largest market and sales have slowed down, and there are a number of units coming online for the next year or so," says Ronald Peterson, an analyst with Stern Agee who rates Corus neutral. "It is believed that a lot of people who signed preconstruction were largely investors and the concern is, do they walk away, do they close on loans?"

So far, Corus' results have been only slightly affected by the real estate slowdown, but the next few years could bring a world of pain. That has sent Corus' stock down about 35% this year to around $15. Moreover, 55% of the stock's float is being sold short, meaning investors are betting on a decline in the stock's value.

A Flop for Flippers

About 95% of Corus' $8 billion of loan commitments are for condo construction or conversion projects. And 25% of those are located in the greater Miami region. Corus also has large exposure to California and Las Vegas.

To be clear, Corus likely will not have problems at all of its Florida projects. Mike Morgan, a South Florida real estate agent and consultant to hedge funds, says the riskiest projects for Corus are the ones that have not been delivered yet.

These include Jade Ocean, the Ivy at Riverfront and the Mint at Riverfront. The projects are all located in different parts of Miami, and Corus has committed to lend $610 million total for the three projects. New York-based iStar Financial(SFI - Cramer's Take - Stockpickr) was a co-lender on the Jade Ocean project.