Rescuing Distressed Real Estate, Part 2
Asset values may have steeply declined and commercial real estate activity slowed to a crawl, but lenders of every size and type are still reluctant, given their own financial condition, to foreclose on financially distressed commercial real estate. If there is a reasonable way for the lender to keep from having to take the property back, many are willing to negotiate and find a way. This opens significant opportunities for restructuring the economics of a real estate deal to prevent foreclosure and/or bankruptcy. This two-part program will provide a practical guide to rescuing distressed real estate projects, including negotiation strategies depending on the type of loan and lender involved, when and how to approach various market actors to initiate restructuring negotiations, new FDIC for commercial real estate workouts, tax implications, possible exist strategies, and much more.
Day 1 – February 23, 2010:
- How to spot the early warning signs of distressed commercial real estate
- Restructuring strategies depending on type of loan: Relationship loans v. securitized
- Market actors, including servicers, in restructuring negotiations: When and how to approach them
- New FDIC guidelines for commercial real estate workouts & new REMIC rules
- Why geography still matters
Day 2 – February 24, 2010:
- Ranges of exit strategies/restructuring alternatives depending on type of loan and parties involved
- More time, more money, forbearance, time extension, deeds-in-lieu of foreclosure
- What your client can reasonably expect
- Equity “kickers” and trends in terms
- Tax implications of restructurings
Speaker:
Richard R. Goldberg was a partner and is now Senior Counsel in the Philadelphia office of Ballard Spahr, LLP, where his practice concentrates on areas of real estate, including development, financing, leasing, and acquisition. Prior to joining Ballard Spahr in 1994, Mr. Goldberg served as Vice President and Associate General Counsel of The Rouse Company for 23 years. He is past President of the American College of Real Estate Lawyers, Past Chair of the Anglo-American Real Property Institute, Past Chair of the International Council of Shopping Centers Law Conference, and a Fellow of the American College of Mortgage Attorneys. He also is a member of the American Law Institute and has advised the Restatement of Property (Mortgages). He has written and lectured extensively on real estate issues, including articles on the economics of commercial leasing for lawyers, commercial financing including credit enhancement, and participating financing. Mr. Goldberg received his B.A. from Pennsylvania State University and his LL.B. from the University of Maryland.
Robert G. Gottlieb is a partner in the Washington, D.C. office of Venable, LLP, and has more than 30 years experience as a tax and business lawyer focusing on structuring and negotiating complex real estate, partnership and business transactions. He advises clients, including real estate developers, tenants, management and leasing companies, and investors, on both day-to-day matters and specific real estate, capital formation, financing and business transactions. In his tax practice, Mr. Gottlieb advises clients in tax planning, choice of entity and structuring investments. A frequent lecturer on advanced tax issues, his practice emphasizes partnership tax planning, passive loss and interest deduction limitations, installment sales and like-kind exchanges, and the tax aspects of leases and loan transactions. In his real estate practice, Mr. Gottlieb represents real estate developers and investors in the acquisition, leasing, financing and disposition of properties. He has been an Adjunct Professor of Law at Georgetown University Law Center for more than 25 years teaching advanced real estate law and is a member of the American College of Real Estate Lawyers. He received his B.A. from Pennsylvania State University and his J.D. from George Washington University.
