Tony Arellano and Devlin Marinoff are co-founders and managing partners of Miami-based DWNTWN Realty Advisors. The firm focuses on urban core transactions ranging from $3 million to over $20 million. GlobeSt.com caught up with them to discuss the long-awaited arrival of distressed assets on the market. 

When can we expect to see a high volume of completed distressed real estate transactions, and what opportunities are you already seeing?

Devlin Marinoff: Everyone in the industry knows what is on the verge of happening. We are starting to see the initial wave of bankruptcy and foreclosure filings, and this will accelerate quickly once the forbearance periods burns off during the fourth quarter. In Miami Beach alone, I anticipate at least 50% of the hotels there filing for bankruptcy in the coming months. We are already seeing notes on hotel properties in Miami Beach go on the market, and that's before lenders start discounting notes to levels where investors will get interested. There have been some studies showing that up to 50% of retailers may not make it through this. This isn't just local, statewide or national – this is global. The worldwide economy is going to be much smaller when we exit this pandemic. We will see many hotel, retail and even multifamily distressed opportunities in the fourth quarter and early 2021.