Question 1

What Miami commercial asset classes have the most bridge loan maturity activity in 2026?

Accepted Answer

Brickell office and commercial condominiums with 2021-2022 vintage bridge loans lead by dollar volume. Wynwood and Design District commercial repositioning projects (mixed-use and retail) are second by deal count. Miami Beach boutique hotels recapitalized with bridge debt during the 2021 travel recovery are third. Aventura and Doral mixed-use projects (office over retail) are the fourth category, with less international buyer competition and potentially larger acquisition discounts.

Question 2

How does Florida's lack of personal income tax affect Miami bridge maturity situations?

Accepted Answer

Florida's tax environment makes Miami commercial real estate particularly attractive to high-net-worth individuals and family offices who have relocated to South Florida from higher-tax states. This creates a strong local buyer pool of Miami-based HNW investors for bridge maturity acquisitions - people who live in Miami, understand the market personally, and want to deploy capital into local commercial real estate at forced-sale prices. This local buyer competition is distinct from international competition and can also compress acquisition discounts for Miami bridge maturity situations, particularly sub-$10M deals.

Question 3

Should buyers pursue note purchases or equity acquisitions for Miami bridge maturity situations?

Accepted Answer

Both paths are viable in Miami, but they have different risk profiles. Note purchases give the buyer enforcement rights and a cheaper entry basis (typically 75-85 cents on dollar of the bridge loan face value). Equity acquisitions (buying the property directly from the distressed sponsor) deliver immediate property control but at a higher price (closer to market value of the collateral). For buyers who want certainty of acquisition, the direct equity acquisition from the sponsor (at a negotiated discount reflecting the bridge maturity urgency) is cleaner than a note purchase that requires a subsequent enforcement process.