Distressed Real Estate
Our Distressed Real Estate team is a longstanding national leader in handling and resolving distressed real estate matters. Established more than a decade ago, the team successfully helped a wide range of clients navigate the last market downturn and has been guiding them through COVID-19 related disruptions and, now, through current market challenges arising from increasing interest rates and construction costs, and the impact of an inflationary and, potentially, recessionary environment.
The firm’s Distressed Real Estate team draws on talent and experience from both transactional and litigation practices to create a multidisciplinary, results-focused team that works closely with lenders, servicers, investors, developers, owners, landlords, tenants, trustees, and receivers to design and implement the best approaches to resolving troubled real estate investments and loans and related disputes. The team also advises on opportunistic investing, rescue capital transactions, distressed loan purchases, and bankruptcy matters.
- Represented many of the largest lenders, special servicers, and bond trustees in the workout, enforcement, and resolution of a wide-range of loans and projects having an aggregate value well in excess of $10 billion, including various office and mixed-use projects, involving a wide-range of restructuring and enforcement strategies
- Representation of a lender in the workout of two cross-collateralized loans having an aggregate principal balance of $143.5 million. The transaction involved the lender obtaining title to the properties, entering into new leases and extending existing leases and ultimately selling the properties to third-party purchasers
- Representation of a large national real estate developer in the workout and restructuring of $450 million in CMBS financing secured by a multi-phase special-use property consisting of over 5 million square feet
Distressed Assets and Opportunities
Distressed Office Buildings: Considerations and Strategies
Rising interest rates, vacancy levels, and operating costs are driving uncertainty in the market for commercial office space. With many capital sources constrained, where can borrowers and owners turn for financing?
Ballard Spahr’s Distressed Office Buildings Team outlines critical considerations and strategies for navigating this challenging market.