In this week’s roundup, we consider distressed property bonds and loans, cities that are sinking under their own skyscrapers, efforts to lower carbon emissions, the unexpected potential of dirty diapers as a building material, and so much more. Globally, more than $190 billion of property bonds and loans are trading…
In our latest roundup, the commercial real estate sector continues to wobble, construction booms and busts, flood insurance premiums reach eye-watering levels, and more. In its latest Financial Stability report, the Federal Reserve acknowledges that the shaky commercial real estate sector could potentially harm the U.S. financial system. (Courtenay Brown,…
With 2023 well underway, it is clear that inflation, interest rates, decreased valuations and geopolitical unrest, together with the uncertain future of major asset classes (particularly office and retail), will lead to a wave of distressed real estate transactions. This may result in a familiar pattern of workouts, bankruptcies and…
Empty office buildings downtown. A housing shortage in almost every major market. Is there a way to address both issues at once by converting historic but underutilized office buildings into apartments and condos in city centers? It’s an idea that has been discussed, and in some cities, implemented in recent…
This week’s roundup explores how Infrastructure Investment and Jobs Act (IIJA) funding is being deployed, mass timber is on the rise as decarbonization efforts continue, and commercial real estate remains distressed. With a flurry of high-profile projects, mass timber is gaining traction. (Jeffrey Steele, Commercial Property Executive) Commercial real estate is…
In this four-part series, colleagues Caroline A. Harcourt and Patrick E. Fitzmaurice provide diligence checklists for the acquisition of distressed real estate debt, and discuss UCC foreclosure basics and 363 bankruptcy sales. Part I: In Acquiring Distressed Commercial Mortgage Loans: A Diligence Checklist, Caroline explores why, when it comes to the acquisition…
There are no shortage of bankruptcy considerations that must be understood by an incoming lender who acquires a distressed commercial real estate loan and whose borrower shortly thereafter files for bankruptcy protection. For the purposes of this article, we imagine a hypothetical distressed debt buyer who has acquired the loan…
We recently provided an outline of items to diligence when purchasing a mortgage loan in distress—and separately also discussed issues to diligence when purchasing a mezzanine loan in distress. This post (the third in this series) outlines Uniform Commercial Code (UCC) foreclosures in general terms and describes key considerations for…
When purchasing a commercial real estate loan that is in “distress,” it is crucial that one understands the nature of the defaults and the motivations of each party involved in the transaction and the deal. Diligence is key. Begin by mining your sources. How did you learn of the loan’s…
Single asset real estate (SARE) is a unique classification under the Bankruptcy Code with implications for both debtors and lenders. SARE classification is apparent for a property such as a shopping center, apartment complex or office building where the debtor’s income is generated exclusively from real estate operations, but is…