Distressed Real Estate
To be successful in the distressed real estate arena, one thing is clear: good things do not come to those who wait.
In today’s market, the real estate crisis is proceeding on an ad hoc basis. Parties need to take the initiative and uncover opportunities; one cannot rely on the market to produce them. In order to successfully capitalize on these possibilities, your legal team needs to proactively identify potential transactions, strategically determine how to proceed and aggressively carry out the plan.
Brown Rudnick’s proven experience in real estate, finance, bankruptcy and restructuring is singularly able to provide clients with the sophisticated, integrated and creative strategies needed to capitalize on opportunities and maximize value.
We set ourselves apart with the ability to understand and identify distressed real estate opportunities. And we help to implement plans that give our clients an advantage over their competitors and over other parties involved with the asset or loan.
Efficiently and effectively, Brown Rudnick determines each client’s specific goals and priorities. We do not fall back on cookie-cutter, “one size fits all” approaches. By skillfully analyzing an asset’s capital structure, we are able to determine the most viable approach for a potential investment. We can advise a lender when a restructuring is appropriate, as opposed to a liquidation. We also understand when a borrower is left with no option other than a bankruptcy filing.
We regularly represent investors seeking to acquire distressed real estate assets and loans, institutional lenders who are faced with under-performing or defaulting loans, and borrowers seeking to restructure their loans and minimize their exposure. The breadth of our practice also has enabled us to represent and understand the different concerns of developers, REITs, special purpose entities, corporations, financial institutions and non-institutional investors.
A selection of representative experience of our team includes:
- Representation of a retail mall developer based in the Northeast in connection with modifying and extending nearly a billion dollars of securitized mortgage loans and mezzanine loans requiring extensive negotiations with special servicers and operating advisors.
- Representing a southeastern US-based homebuilder in its restructuring of a $350 million credit facility, with several major national banks.
- Represented a major national builder in its extensive restructuring of over $1 billion in debt, at both the project and company levels, including properties in multiple states.
- Represented a GSE lender in the restructuring of a $118 million loan secured by a 25 multi-family property portfolio located in the Bronx, New York.
- Represented a special servicer in a complex restructuring of a $500+ million loan secured by 11 branded and independent hotels located in six states, following the borrower’s maturity default.
- Represented a real estate fund joint venture in connection with the proposed purchase of several levels of mezzanine debt covering multifamily properties having a value of several billion dollars.