Kennerly Lamishaw & Rossi LLP

Distressed Real Estate and Restructuring

Kennerly Lamishaw & Rossi’s attorneys have extensive expertise in a variety of distressed asset transactions on behalf of financial institutions and borrowers related to debt secured by real estate. KLR attorneys create value by being creative, practical and cost effective in collaboration with their clients for the acquisition, disposition, restructuring and management of such assets.

Notably, KLR has a significant practice representing private equity funds, banks and investors in the acquisition of portfolios of performing and non-performing loans, as well as advising such clients on the management of such loan portfolios, including the disposition of individual or sub-portfolios of such assets, loan workouts, loan modifications, foreclosures and sales of real estate owned property. In addition, KLR regularly works with investors and developers seeking to purchase debt as a means to opportunistically acquire real estate.  KLR attorneys have been instrumental in helping clients assess the risks and practical considerations associated with such loans when their goal is to own the underlying collateral.

AREAS OF EXPERTISE:

  • Loan portfolio purchase and sale transactions, including diligence and underwriting, as well as negotiation of loan sale agreements;
  • Short sale transactions and discounted payoff agreements;
  • Representation of lenders, servicers, borrowers and investors in foreclosures and deeds in lieu;
  • Sale of distressed real estate and assets, including the representation of banks in REO dispositions;
  • Restructuring of sponsor and management arrangements between sponsors and TIC or DST investors;
  • Partnership finance restructurings, including partnership loans, capital calls, “squeeze down” and implementation of buy-out rights in the partnership and limited liability company context.
  • Lease restructurings, terminations, settlements and releases;
  • Evaluation and implementation of downsizing strategies, re-positioning and subleasing;
  • Rezoning of property for different use class; preservation and extensions of entitlements;
  • Re-purposing properties (retail to office; office to medical; etc.); and
    Property maintenance issues (shuttered buildings; go-dark space; etc.).

REPRESENTATIVE TRANSACTIONS/EXPERIENCE:

  • Represented regional bank in the acquisition of multiple pools of loans totaling in excess of $100,000,000.
  • Represented major investment fund with respect to the acquisition and underwriting of various real estate loan portfolios.
  • Represented regional banks and investment funds in the disposition of REO properties and non-performing loans;
  • Represented a major investment banking firm in the acquisition of a variety of national real property and real estate loan portfolios.
  • Advised one of the nation’s largest insurance companies in the portfolio disposition of 34 commercial properties.
  • Represented Freddie Mac in acquisition of various loan portfolio purchases.
  • Advised the nation’s second largest multifamily real estate investment trust in the purchase or sale of a number of properties, including a 17-property portfolio sale.
  • Represented a large national bank in the workout of a loan secured by a multi-use property (hotel, retail and office) in Washington, D.C.
  • Represented several national retailers in acquiring leases and assets from other troubled retailers.
  • Advised some of the nation’s largest fund managers in the formation of joint ventures and investment funds for retail and office development and redevelopment and in the restructurings thereof of resolution of partnership disputes.
  • Represented a national bank in the REO sales of a partially constructed multi- home residential development.
  • Represented borrowers in restructuring of senior secured loans, including CMBS loans, and mezzanine loans.
  • Represented more than 500 investors in restructuring of TIC and DST investments involving infusion of additional capital by the sponsor in exchange for modification of the master lease arrangement.