CMBS and Real Estate Workouts
Complete Solutions for Complex Real Estate Workouts
From the initial default notice through to the resolution of the property or loan, the complex transactions involved with real property secured loans—including real estate workouts and commercial mortgage-backed securities (CMBS) lending—demand the insight of seasoned legal counsel.
At Perkins Coie, we bring a deep understanding and a strategic approach to navigate these challenges effectively. Our distinguished Real Estate Workouts practice diligently serves lenders, loan servicers, and receivers across a broad spectrum of transactions involving commercial loans secured by real property and/or business assets. With a portfolio spanning thousands of real estate workouts nationwide, our engagements have encompassed single asset workouts, multi-asset workouts, and multistate transactions involving significant financing.
We have been advising clients on CMBS matters since the inception of the products, and our lending and real estate practices are bolstered by our vast experience with CMBS lending. Our Real Estate Finance practice encompasses a broad range of income-producing commercial properties, and our national team includes lawyers with experience in retail, hospitality, office, multifamily, mixed-use, and industrial and mobile home spaces.
We understand the complexities of single-purpose entities, bankruptcy-remote entities, cash management, structured reserves, nonconsolidation opinions, and real estate mortgage investment conduit (REMIC) issues, in addition to the many other matters that can arise in a real estate workout transaction. Having served as “program counsel,” we appreciate the roles of the various players in the CMBS industry, from the rating agencies to the piece buyers. We also have a thorough understanding of the “capital stack” and the rights and liabilities of the parties under the pooling and servicing agreements that govern the CMBS world.
Areas of Focus
Commercial Mortgage-Backed Securities (CMBS)
Our team possesses deep experience in a variety of asset classes, including retail—from strip centers to regional malls; hospitality—from limited service hotels to resorts and golf course properties; office—from suburban and tertiary market small office buildings to 50-story office projects in downtown markets; multifamily—from Class C projects to new, state-of-the-art, 700-plus-unit projects; mixed-use—from small residential with limited retail to large residential, retail, office, and hotel projects; and industrial and mobile home projects.
Modifications
Perkins Coie lawyers have represented lenders and borrowers in loan modifications, restructuring, and workouts on office buildings, shopping centers, hotels, multifamily projects, mixed-use projects, and residential subdivisions.
Judicial and Nonjudicial Foreclosures
The Perkins Coie team has represented servicers and lenders in judicial and nonjudicial foreclosures on commercial properties across the United States and its territories.
Deeds in Lieu of Foreclosure
Our team has effectively represented servicers and financial institutions in hundreds of deeds in lieu of foreclosure transactions spanning commercial, residential, and office properties across the United States.
Bankruptcy
We have served as legal counsel for servicers and financial institutions in a host of bankruptcy proceedings involving CMBS borrowers with commercial, residential, hospitality, and office properties across the United States. We have honed particular proficiency in resolving bankruptcy cases through lender plans of reorganization, which streamline the liquidation of properties while sparing them from significant transfer taxes.
Bad Boy Guaranties
Our team has a wealth of experience in representing servicers and financial institutions in the pursuit of judgments against “bad boy” guarantors who trigger full recourse by breaching CMBS loan requirements.
Areas of Focus
- Assumptions.
- Discounted payoffs.
- Forbearance agreements.
- Condemnation or eminent domain actions.
- Lease reviews and consents.
- Bankruptcies.
- Yield maintenance prepayment disputes.
- Guarantor actions.
- Replacement loans.
- Subordination of equity transactions.
- Sales of real estate owned (REO).