Across industries, many of our clients are experiencing the effects of the current economic crisis. The commercial real estate business, however, has suffered more than other sectors from a lack of credit, resulting in a decline 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 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.
For owners:
- Analyzing bankruptcy as a strategy for troubled real estate projects and the parties involved
- Evaluating the risks of a troubled real estate development project
- Resolving 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 a taxable event
For lenders:
- Guidance on rights and duties of developers and investors in failed real estate developments
- Resolving problem loans and inadequate real estate collateral value
- Advice on rights and duties of parties to judicial and non-judicial 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 a taxable event
For tenants:
- 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
For investors and buyers:
- 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.