Gravel2Gavel Construction & Real Estate Law Blog
Phishing schemes target the mortgage industry, housing prices rise in Europe as Ukrainian refugees flee from their home country, the SEC announces new climate change regulations that will impact commercial real estate, and more.
Articles Posted in Real Estate
Real Estate & Construction News Round-Up 04/06/22
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A growing proptech startup aims to pre-emptively identify needed home repairs, 3D-printed homes could become a workable solution to the housing shortage, and more.
Landlords Beware: When Tenants Are Sanctioned
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The listing of Specially Designated Nationals (SDNs) has the potential to impact any American doing business with a named party, including landlords who lease real estate to sanctioned persons. In “Specially Designated Nationals as Tenants: How Landlords Can Be Impacted by Sanctions Against Russian Nationals,” Nancy A. Fischer, Rachel B. Horsch, Anne C. Lefever, Zachary C. Rozen and Samantha Franks explain how sanctions designations may require U.S. persons involved with sanctioned individuals to terminate existing contracts, including leases, and why it is important for landlords to conduct thorough due diligence on prospective tenants and to negotiate language that enables them to quickly terminate a lease if a tenant becomes subject to sanctions.
Real Estate & Construction News Round-Up 03/30/22
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Office vacancy rates are on the rise, 3D printing technology will be used to build a portfolio of affordable homes, resources from the Biden Administration’s Infrastructure Bill are projected to speed up the creation of “smart cities,” and more.
Is a By-the-Hour Motel a Single Asset Real Estate for Chapter 11 Purposes?
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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 less apparent for a hospitality property where the debtor may provide incidental services. Although a full-service hotel with a pool, fitness center and restaurant is not a SARE property, recent trends indicate that even hourly motels offering little-to-no onsite amenities may not qualify for SARE classification. Because SARE classification is viewed as providing lenders with distinct advantages in a chapter 11 case, property owners seeking chapter 11 protection to reorganize often try to avoid that classification, while lenders seek to impose it through sometimes costly litigation.
Real Estate & Construction News Round-Up 03/23/22
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New home construction projects experience the fastest growth rate since 2006, President Biden signs the Consolidated Appropriations Act of 2022 into law, big U.S. hotel chains place developments in Russia on hold, and more.
Real Estate & Construction News Round-Up 03/16/22
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The popular term “PropTech” is projected to disappear as real estate digitization continues, the impact of the Russia-Ukraine conflict on the U.S. housing market is analyzed, China’s home prices continue to fall, and more.
Commercial Real Estate Brokerages in an Uncertain Russian Market
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Several commercial real estate firms have joined the growing list of companies temporarily suspending—or outright terminating—property and facility management operations in Russia amid economic sanctions and mounting international pressure. CBRE is the latest to make such a move, discontinuing its Russian leasing, investment and property management operations and denouncing Russia’s invasion of Ukraine in a statement issued March 7. Other major players, including Savills, Knight Frank, and Colliers, have already suspended operations in the country, citing similar concern for international sanctions and the humanitarian impact of the invasion. Colliers is going even further to suspend operations in Belarus as well. Recently, global real estate service giant JLL switched course, issuing a formal statement that “with great sadness,” it will begin the process of separating from its domestic operations in Russia, though not commenting on whether the separation will be temporary or permanent. This is a significant change from just earlier this month , where, when asked about pulling operations from the country, JLL stated it would stay abreast of the situation abroad and continue to ensure the safety of its people and clients.
Real Estate & Construction News Round-Up 03/02/22
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Economic sanctions placed on Russia cause a shift in the U.S. real estate market, investments in virtual real estate continue to grow as market equilibrium returns, climate change concerns have made a notable impact on regional real estate interest, and more.
FCC Order Bans Certain Arrangements to Promote Competition in Multi-Tenant Buildings
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On February 15, 2022, the Federal Communications Commission (FCC) released a Report and Order adopting new rules to further broadband competition for the millions of Americans living and working in apartments, public housing, office buildings, and other multiple-tenant environments (MTEs). In their recently-published client alert, Pillsbury colleagues Glenn Richards and Betsy Craig discuss how the commission rules out certain revenue sharing agreements, requires disclosure of exclusive marketing arrangements and restricts sale-and-leaseback arrangements.