Counseling our Clients Through the Economic Crisis
Across many industries, many of our clients are experiencing significant challenges brought forth by the current economic crisis. The commercial real estate business, however, has suffered more than other sectors from a lack of credit, which has resulted in a fall-off in demand from buyers. In addition, tenant defaults and a rise in vacancies have made it increasingly difficult for owners to be able to service existing loans. Meanwhile, a significant number of tenants face the challenges of dramatically lower consumer spending.
We believe that every property owner, tenant, real estate buyer or investor should have a tailored strategic plan that considers all available options. Our Development Services and Bankruptcy & Creditors' Rights attorneys are committed to working with you to develop and implement such a plan. We are prepared, as always, to provide the trusted counsel and guidance necessary to confront any challenge that you may face.
If you are an Owner:
- Analyzing whether bankruptcy is the best strategy for troubled real estate projects and the parties involved
- Evaluating the risks of a troubled real estate development project, including risk of expiring land use entitlements and permits, construction payment disputes and lien claims, claims of multi-tiered lenders, loss of LEED certification, construction defect litigation, and inadequate insurance coverage on vacant projects
- Negotiating loan workouts, settlement agreements and other methods to resolve problem loans and inadequate real estate collateral value
- Advice on rights and duties of parties to judicial and nonjudicial foreclosures, and potential for deficiency judgments against borrowers and guarantors
- Tax planning and analysis for loan workouts and settlements, including relief of mortgage debt as taxable event
If you are a Lender:
- Guidance on rights and duties of developers and investors in failed real estate developments, under securities law or otherwise bankruptcy law
- Negotiating loan workouts, settlement agreements and other methods to resolve problem loans and inadequate real estate collateral value
- Advice on rights and duties of parties to judicial and nonjudicial foreclosures and potential for deficiency judgments against borrowers and guarantors
- Tax planning and analysis for loan workouts and settlements, including relief of mortgage debt as taxable event
If you are a Tenant:
- Handling commercial landlord and tenant disputes, including lock-outs and eviction proceedings
- Negotiating lease modification agreements
- Analyzing whether bankruptcy is the best strategy for tenant
If you are an Investor/Buyer:
- Guidance on rights and duties of developers and investors in failed real estate developments, under securities law or otherwise
- Assist in performing due diligence with respect to distressed real estate
- Negotiating with lenders regarding troubled assets, including acquisition of promissory notes
Creative solutions require flexibility. We will consider alternative fee agreement options, as necessary, with our clients during this time of unprecedented economic challenge.