The credit crunch, the subprime mortgage crisis, declining real estate values and a surge in foreclosures have converged to create unprecedented dislocation in real estate markets. At the same time, the federal regulatory and legislative environment is rapidly evolving in an attempt to keep pace with, and respond to, changes in the financial and capital markets.
In these uncertain times, one thing is certain—the needs of the players in today’s real estate market have changed dramatically.
- Funds, investors, real estate investment trusts (REITs) and developers need advice regarding the acquisition and disposition of distressed real estate assets and debt.
- Borrowers, guarantors, lenders, servicers and participants are navigating the complex world of intercreditor, participation and pooling and servicing agreements, as they attempt to work out troubled loans.
- Mortgage and mezzanine lenders are faced with numerous options, including restructuring debt secured by distressed real estate assets, presenting their position to potential investors looking for “loan-to-own” opportunities, foreclosing against their collateral and pursuing remedies against guarantors.
Regardless of the type or complexity of the transaction at issue, Akin Gump Strauss Hauer & Feld LLP offers the knowledge and experience to help you maximize your returns while minimizing your risk.
Our multidisciplinary team has the breadth and depth of knowledge and experience in real estate finance, asset acquisition and disposition, financial restructuring, structured finance, private equity/investment funds, litigation, tax and government affairs to provide a comprehensive response to our clients’ questions. We have assisted private equity, opportunity and hedge funds, investment banks, developers, REITs, mortgage and mezzanine lenders and servicers in complex transactions involving—
- the assessment of portfolio strategies involving the acquisition, development, operation and disposition of distressed real estate assets and/or debt
- the workout, modification and/or restructuring of distressed debt
- the assertion of creditors’ rights and remedies and/or debtors’ defenses in, and the rendering of tax advice and structuring for, commercial loan workouts; debt restructurings; foreclosures and conveyances-in-lieu of foreclosure; sales and acquisitions of defaulted and near-defaulted commercial loans and loan pools; state court-contested receiverships of distressed real estate; and bankruptcy
- the handling of distressed structured products—including collateralized debt obligations (CDOs), collateralized mortgage obligations (CMOs) and collateralized loan obligations (CLOs)—and the development of loss mitigation strategies for residential mortgage-backed securities (RMBS), commercial mortgage-backed securities (CMBS) and CDO write-downs
- the development of strategies to address legislative and regulatory reform, government investigations, lawsuits by investors and other interested parties, and sensitive public relations issues.
Our clients benefit from the collective experience of an international team of lawyers and advisors that has been actively engaged in a number of noteworthy matters, including the representation of—
- a mezzanine lender in one of the first Article 9 UCC foreclosures of a mezzanine loan in the United States
- mezzanine and mortgage lenders in workout and debt modification negotiations involving co-lenders and loan participants, and in the implementation of conveyance-in-lieu of foreclosure transfers of interests in residential development projects
- a national distressed asset investor in its acquisition and later disposition of performing and non-performing mortgage pools.
- an international private equity firm in strategic planning (real estate, litigation and tax) relating to its and its funds’ equity interests in portfolios of distressed multi-family residential projects
- the largest special servicer of commercial securitized mortgage trusts in dozens of non-performing commercial loans, secured by hotels, shopping centers, assisted living facilities, warehouses, multi-tenant housing complexes, office buildings and multiple locations of “big box” retail sites
- a real estate equity fund in its acquisition of a troubled multi-location medical business consisting of approximately 100 separate special use properties, including the financing, workout, re-leasing, operation and subsequent disposition of such properties
- luxury hotel owners in workout/settlement negotiations with their lenders and in connection with the buyout of their equity partners
- a national real estate developer in the purchase of loans from a bankrupt borrower, which included involvement in bankruptcy court proceedings and the subsequent foreclosure
- a lender in the unwinding of defaulted bond issuances collateralized by multistate mortgage loans secured by properties occupied by national retailers pursuant to leases rejected in bankruptcy, which included the foreclosure and sale of all collateral, and management of bondholder actions
- an investor group in negotiations with its co-investors and lenders in hotel loan workouts
- official creditors’ committees in connection with the financial restructuring of homebuilding companies and commercial developers in chapter 11 cases, including TOUSA, Inc., Kimball Hill, Inc., and WCI Communities, Inc.
- secured noteholders in the chapter 11 filing of Scotia Pacific, Inc., the world’s largest redwood forest
- companies, private equity funds and other purchasers in the acquisition of real estate assets being auctioned pursuant to Section 363 of the Bankruptcy Code
- a public mortgage REIT as originator of commercial mortgage loans and in the acquisition of subordinated CMBS and the restructuring of subordinated CMBS and CMO transactions.
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