Tenant in Common Workouts

Negotiating the Real Estate, Tax, Finance and Securities Issues When Exiting TIC Deals

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


Conducted on Thursday, October 22, 2009
Recorded event now available


This seminar will review current trends in Tenant-in-Common (TIC) workouts and provide strategies for legal counsel to TIC sponsors, investors, broker-dealers, registered representatives and lenders to protect their clients’ interests during a workout.

Description

Tenant-in-Common deals became popular after their emergence in 2002 during the real estate boom. However, the tide has turned. TIC investors are now suffering severe losses stemming from declining property values; tenant vacancy, default or bankruptcy; and even investment fraud.

TIC sponsors, investors, broker-dealers, registered representatives, and lenders are seeking to exit failed TIC deals. TIC workouts involve complicated real estate, tax, finance and securities issues. Counsel must fully understand these issues in order to properly advise their clients.

Listen as our panel of attorneys experienced in TIC deals reviews current trends in TIC workouts and provides best practices for counsel representing TIC sponsors, investors, broker-dealers, registered representatives and lenders on protecting their clients’ financial interests during a workout.

Outline

  1. Introduction
    1. Impact of real estate slowdown on TICs
    2. Impact of the involvement of special servicers in TIC loan workouts
    3. Impact of troubled TIC sponsor situations
  2. Overview of TIC structure
    1. Master lease structure
    2. Asset management structure
  3. Types of TIC workouts
    1. Financially troubled sponsor
    2. Financially troubled property
    3. Poorly managed property
    4. Situations involving fraud
  4. Key issues/complexities in TIC workouts
    1. Multi-party structure of TICs
    2. Lack of control over borrower/property owner
    3. Conflicts of interest in selecting counsel
    4. Replacing the existing TIC Sponsor
    5. Lender consent/non-recourse carve-out guarantees
  5. Lender reaction to TIC workouts
    1. Expansion of recourse liability
    2. Change in structure
    3. Required capital calls
  6. Collateral issues to be considered in a TIC workout
    1. Tax issues
    2. Securities issues

Benefits

The panel will review these and other key questions:

  • How is the real estate slowdown impacting TIC deals?
  • What are the unique complexities of TIC workouts?
  • What collateral issues should be considered during a TIC workout?
  • How can counsel representing parties to a TIC deal best advise their client during a workout of the deal?

Faculty

Edward J. Hannon, Partner
Freeborn & Peters, Chicago

He provides tax and structural advice to developers and owners of real estate. He has been involved in a number of real estate oriented lender workouts, including several transactions involving the restructuring of co-ownership structures using both Delaware Statutory Trusts and the tenant in common structure.

Coni S. Rathbone, Partner
Davis Wright Tremaine, Portland, Ore.

She focuses on real estate, corporate and securities law, mergers and acquisitions, and general business transactions. She regularly helps clients in the purchase, development and sale of commercial property. She has significant expertise in representing tenant-in-common (TIC) sponsors and investors. She also serves as General Counsel for several Oregon corporations.

Michael A. Moynihan, Partner
Freeborn & Peters, Chicago

He focuses on a broad range of commercial real estate and financing transactions. A significant portion of his practice involves representing developers of large-scale commercial, residential and mixed use developments, principally in major metropolitan areas. He represents clients in the acquisition, financing and leasing of office properties, retail centers and other real property assets.

Ordering

Online CLE - Audio Recording

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Program Materials

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Program Materials

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Customer Reviews

I appreciated that there was a great deal of current case law on the subject and the speakers were concise and informative.

Thomas G. Mancuso

Haskell Slaughter

The program covered a fair amount of material in a short time period.

Dawn Sharff

Bradley Arant Boult Cummings LLP

Very good current, practical and applicable discussion and information provided.

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Clawson & Staubes, LLC

The presentation was not too long, but included a great deal of information. The speakers kept to their times and provided an opportunity for questions at the end.

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Length was ideal and the topic was timely. Excellent!

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University of Washington

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Real Estate Law Advisory Board

David A. Barksdale

Partner

Alston & Bird

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

Of Counsel

K&L Gates

Susan C. Tarnower

Counsel

Kilpatrick Townsend & Stockton

Clark T. Thiel

Partner

Jones Day

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