There are no shortage of bankruptcy considerations that must be understood by an incoming lender who acquires a distressed commercial real estate loan and whose borrower shortly thereafter files for bankruptcy protection. For...more
We recently provided an outline of items to diligence when purchasing a mortgage loan in distress—and separately also discussed issues to diligence when purchasing a mezzanine loan in distress. This post (the third in this...more
We recently discussed the importance of diligence when acquiring distressed commercial mortgage loans, providing a diligence checklist for the process. Given that any foreclosing mezzanine lender may step “into ownership” if...more
When purchasing a commercial real estate loan that is in “distress,” it is crucial that one understands the nature of the defaults and the motivations of each party involved in the transaction and the deal. Diligence is key....more
“Smart Construction” is a loose term but generally refers to the development and use of processes and applications that improve construction planning and the management of projects (thereby potentially streamlining costs of...more
Although cannabis is still classified as a controlled substance at the federal level, New York State recently enacted the Marijuana Revenue and Taxation Act (MRTA), a law legalizing adult-use cannabis within the state....more
In our June 16 CMA Update, we discussed how the New York City Climate Mobilization Act (CMA) will affect building owners and the market for CMBS mortgage loans (loans pooled and resold as commercial mortgage-backed...more
The shift towards a “greener” environment has resulted in cities and states implementing electrification mandates, which will have a major impact on both current and future building design. Currently, most commercial and...more
In a previous post, we described how the New York City Climate Mobilization Act, 2019 (the CMA, or Local Laws 92, 94, 95, 96, 97, and 147 enacted in 2019) was passed with the goal of reducing New York City’s carbon emissions...more
On January 22, 2021, several New York State Assembly Members reintroduced legislation (Bill No. A03139) that seeks to amend New York’s Real Property Law and Tax Law, New York’s Tax Law and New York’s Uniform Commercial Code...more
2/17/2021
/ Borrowers ,
Financial Statements ,
General Assembly ,
Legislative Agendas ,
Lenders ,
Mezzanine Lenders ,
Mortgagee ,
Mortgages ,
Property Tax ,
Proposed Legislation ,
State and Local Government ,
State Legislatures ,
State Taxes ,
Tax Code ,
Uniform Commercial Code (UCC)
The new Presidential administration has set off a renewed emphasis on sustainability and climate change. While owners and other stakeholders involved in New York City real estate have been grappling with many of these issues...more
2/15/2021
/ Borrowers ,
Carbon Emissions ,
Clean Energy ,
Climate Change ,
Compliance ,
Energy Sector ,
Environmental Policies ,
Governor Cuomo ,
Investors ,
Lenders ,
Popular ,
Property Owners ,
Purchasers ,
Sellers ,
State and Local Government ,
State Budgets ,
Tenants
Construction loans with companion mezzanine loans raise a host of concerns that are unique to more standard ICAs between a mortgage lender and a mezzanine lender.
An intercreditor agreement (ICA) involving a construction...more
10/27/2020
/ Borrowers ,
Construction Loans ,
Coronavirus/COVID-19 ,
Foreclosure ,
Intercreditor Agreements ,
Loan Transfers ,
Mechanics Lien ,
Mezzanine Lenders ,
Mortgages ,
Real Estate Market ,
Repurchase Options ,
Right To Cure ,
Uniform Commercial Code (UCC)
Mortgage lenders and mezzanine lenders considering amendments to loan documents, forbearance, loan transfers, the exercise of remedies or deeds in lieu of foreclosure, and other loan-related fact patterns will need to revisit...more
The past few months saw, and continue to see, significant disruptions to the real estate market and the real estate finance market in particular. According to Trepp LLC, June saw the delinquency rate for commercial...more
A recent court decision in New York found that current market conditions in the real estate market justify delaying noticing mezzanine real estate foreclosures until October 15, 2020.
A recent New York Supreme Court Order...more
In a deed in lieu of foreclosure, a defaulting borrower agrees to convey the mortgaged property to the mortgage lender. But handing over the keys can raise a number of potential pitfalls. Below, we discuss some of these...more
8/13/2020
/ Borrowers ,
Commercial Mortgages ,
Commercial Real Estate Market ,
Coronavirus/COVID-19 ,
Deed-in-Lieu of Foreclosure ,
Deeds ,
Deficiency Judgments ,
Foreclosure ,
Income Taxes ,
Intercreditor Agreements ,
Lenders ,
Mezzanine Lenders ,
Non-Recourse Loans ,
Popular ,
Transfer Taxes
Commercial real estate owners may find relief under the Main Street Lending Program, but with many unable to qualify, the recently introduced HOPE Act, if enacted, will fill a much-needed gap.
Although the possibility may...more
From mask-wearing to physical separation to staggered schedules and crowding-related transit incentives, implementing these guidelines may reshape office life.
Updated CDC guidelines provide information for minimizing the...more
Until COVID-19 officially took hold in the U.S. in March of 2020, the U.S. real estate market was active, even robust. Starting in March, however, the possible scope of the pandemic and the sudden imposition of stay-at-home...more
A recent court order found that a mezzanine lender may conduct a UCC foreclosure sale despite a temporary suspension of judicial foreclosures in New York State.
A recent court order interpreting the scope of New York...more
Mezzanine lenders enforcing Uniform Commercial Code remedies that do not comply with applicable requirements may face economic losses, costly litigation and potential liability.
Mezzanine lenders have specific and limited...more
In many cases, borrowers and lenders are working together to weather this crisis. A forbearance agreement is often the first step—after a pre-negotiation agreement is entered into.
A forbearance agreement can benefit both...more
4/14/2020
/ Banks ,
Contract Negotiations ,
Coronavirus/COVID-19 ,
Emergency Response ,
Financial Institutions ,
Financial Services Industry ,
Forbearance Agreements ,
Mortgage Lenders ,
Mortgages ,
NYDFS ,
Pre-Negotiation Agreements ,
Relief Measures
The coronavirus pandemic is resulting in a wave of forbearances and workouts. A frequent first step is the pre-negotiation agreement.
A good PNA should be quickly negotiated but carefully considered, getting both parties to...more
New York orders extraordinary measures requiring financial institutions to meet financial needs of and ameliorate the challenges being faced by customers affected by COVID-19.
New York State has implemented extraordinary...more
New York orders extraordinary measures requiring financial institutions to meet financial needs of and ameliorate the challenges being faced by customers affected by COVID-19.
- New York State has implemented...more