Distressed Commercial Real Estate Debt: New Opportunities and Legal Risks

Strategies for Buying and Selling Loans Facing Default

Recording of a 90-minute CLE webinar/teleconference with Q&A


Conducted on Thursday, March 11, 2010
Recorded event now available


This CLE webinar will discuss best practices for counsel to investors and lenders in negotiating and structuring distressed real estate deals to take advantage of the opportunities currently available while mitigating inherent legal and financial risks.

Description

The depressed credit market and economic downturn are pushing more real estate loans into default, forcing lenders to either take back properties, restructure debt, or sell loans at current market values.

In this environment, real estate investors are identifying new opportunities to purchase distressed real estate loans at bargain prices. However, these opportunities present a myriad of legal and financial risks for developers, purchasers of debt and/or foreclosed properties, and lenders.

Counsel for investors and lenders must act strategically to negotiate a deal that maximizes the value of the purchase and sale to their clients’ respective benefits.

Listen as our panel of real estate and finance attorneys discusses the new opportunities available in distressed real estate and offers best practices for investors and lenders for negotiating and structuring deals.

Outline

  1. Overview — impact of economic forces on real estate loans
  2. Opportunities for investors/buyers and lenders
    1. Note and REO sales
    2. Sales of assets in foreclosure
    3. Role of the special servicer
    4. Impact of bank takeovers
  3. Negotiating and structuring the deal
    1. Debt pricing
    2. Due diligence
    3. Representations and warranties
    4. Closing conditions
    5. Intercreditor rights
    6. Third-party rights
    7. Alternative structures (deed in lieu of foreclosure, receiver)

Benefits

The panel will review these and other key questions:

  • What are the key factors driving the increase in distressed real estate deals?
  • What are the potential legal pitfalls in negotiating distressed real estate deals?
  • What are best practices for counsel on both sides of the deal to tailor terms in distressed transactions?
  • How has the U.S. Treasury Department's Public-Private Investment Program impacted investors' opportunities to purchase distressed real estate?

Faculty

George E. Covucci, Partner
Arnold & Porter, Washington, D.C.

He serves as counsel to creditors' committees of lenders, developers, and limited partners in foreclosures and real estate workouts. His experience also includes sales and purchases of commercial real estate for foreign and other investors, and structuring joint ventures and limited partnerships involving tax, partnership, and financial issues. He lectures often on distressed real estate topics.

Ren R. Hayhurst, Partner
Bryan Cave, Irvine, Calif.

He represents lenders in real estate and commercial loan documentation, real estate loan workouts and foreclosure, receivership and loan/guaranty enforcement litigation. He is a frequent speaker on a wide variety of real estate topics.

Thomas O’Connor, Partner
Cooley Godward Kronish, New York

He chairs the firm's Real Estate Group. He focuses on commercial real estate transactions, with an emphasis on real estate finance, acquisitions and sales. He has experience with the lender and borrower side of real estate lending (including origination, workout and restructuring). He represents institutional lenders and borrowers in originating and restructuring mortgage and mezzanine financing.

Amy B. Rifkind, Counsel
Arnold & Porter, Washington, D.C.

She has experience in all aspects of commercial real estate transactions and financings including construction, term loan, conduit, mezzanine, and securitized debt financings. She counsels clients regarding debt and equity restructurings, buying distressed debt and workouts. She also focuses on large-scale leasing, public-private partnerships, and real estate development.

Ordering

Recorded Event

Includes full event recording plus handouts (available after live seminar).

CLE: Pre-approved for self-study credit in AK, AZ, CA, CT*, MO, MT, NY*, TX, VT, WA. Upon request, self-study credit is also available in: CO, FL, GA, ID, KY, LA, ME, ND, NE, NH, NM, NV, OR, UT, WI, WV, WY. If you are applying for self-study credit in one of these states, contact Strafford CLE at 1-800-926-7926 ext. 35 or CLE@straffordpub.com. (*For CT and NY, Strafford needs to process the CLE — see below to purchase this option.)

MP3 Download (Audio with Slide PDFs) $297.00
Available 24 hours after the live event

How does this work?

Webinar Download (Slide Presentation with Audio) $297.00
Available three business days after the live event

How does this work?

CD (Audio with Slide PDFs) $297.00 plus $9.45 S&H
Available ten business days after the live event

DVD (Slide Presentation with Audio) $297.00 plus $9.45 S&H
Available ten business days after the live event


CLE on Live Event

Continuing Legal Education credit processing is available for an additional $65 per person per state in states where webinars and teleconferences are accredited.

This webinar is eligible for at least 1.5 general CLE credits, depending on state rules.

You may register for CLE credit processing before or after a program (application deadlines vary by state).  Exceptions: Pennsylvania attorneys must pre-register for CLE. Maine and Alabama attorneys please call 1-800-926-7926 ext. 10 for special instructions.

CLE credits are not available for DE, IN, KS, OH, and PR or for NY attorneys admitted within the last 2 years.

CLE Processing $65.00

How does this work?

Webinar/Teleconference

Strafford webinars/teleconferences offer several options for participation: online viewing of speaker-controlled PowerPoint presentations with audio via computer speakers or via phone; or audio only via telephone (download speaker handouts prior to the program).  Please note that our webinars do not feature videos of the presenters.

Program Materials

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Program Materials

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CLE Credit

Strafford's live seminars qualify for CLE in every state that accredits webinars. They offer you a high quality, cost effective, and convenient CLE option, with no lost travel time or expenses.

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Customer Reviews

The three presentations created a balanced approach.

Cris Navarro

Enloe Medical Center

The program provided good legal references, good bullet points and good scope.

Tim Thomas

Kolesar & Leatham

Good handouts and up to date references.

Andrew Davis

Lieben Whitted Houghton Slowiaczek & Cavanagh

Cutting edge information from people who are in the field.

John McGowan

Donahue Tucker & Ciandella

Great program.  All three speakers were very knowledgeable and had smooth deliveries.

John Bowers

Fortune 100 Company

Real Estate Law Advisory Board

David A. Barksdale

Partner

Ballard Spahr Andrews & Ingersoll

Jacob Bart

Partner

Stroock & Stroock & Lavan

Brian W. Blaesser

Partner

Robinson & Cole

Ronald B. Grais

Of Counsel

Jenner & Block

Ren R. Hayhurst

Partner

Bryan Cave

Thomas C. Homburger

Partner

K&L Gates

Michelle A. Neumann

Attorney at Law

Jordan Schrader Ramis

Susan C. Tarnower

Attorney

McGuire Woods

Clark T. Thiel

Partner

Howrey