Question 1

Which Miami-area commercial construction defaults offer the most accessible entry for outside buyers?

Accepted Answer

North Miami and Doral mixed-use construction defaults offer better pricing (lower international buyer competition) than Brickell or Wynwood. Medley and Hialeah industrial/commercial construction defaults are accessible to institutional buyers targeting industrial or light industrial repositioning. Pompano Beach and Deerfield Beach (Broward County) have commercial development defaults from 2021-2022 originations that are outside the core Miami market and attract less competition. Aventura mixed-use defaults have moderate competition from local buyers and reasonable acquisition bases.

Question 2

How does Miami condo conversion risk affect commercial construction default acquisitions?

Accepted Answer

Several Miami commercial construction default projects were originally conceived as commercial or mixed-use but may have potential for residential condo conversion if completed differently. Florida's condo conversion process is well-developed legally, but condo sales require compliance with Florida's condominium disclosure statutes and pre-sale period requirements. Buyers who acquire commercial construction defaults in Miami with a conversion thesis should verify that the project's existing entitlements and construction documents support residential condo use, and should factor in the additional regulatory and marketing costs of a condo conversion exit.

Question 3

What construction completion financing sources are available in South Florida?

Accepted Answer

Florida commercial construction completion financing sources include: national construction lenders (JPMorgan, Wells Fargo, Regions Bank Florida offices), Florida-chartered banks (BankUnited, Seacoast Banking), regional debt funds that specialize in Florida commercial construction (Thorofare Capital, Silver Hill, Knighthead Annaly Capital), and South Florida family office capital that has been active in direct construction lending. Completion loans are typically underwritten at 60-70% of completed project value and require borrower equity injection at acquisition - expect to bring 30-40% of total project cost (acquisition + completion) to the table.