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When a real estate project goes bad for whatever reason – sales are slow or at prices below projections, leasing is slow, or there are extensive cost-overruns or regulatory delays – developers, investors, lenders, and others are left scrambling to restructure the project and salvage any value or at least limit losses. This often involves restructuring or possibly refinancing a loan. It may also involve additional equity.
Another option is selling the project, if possible. These processes can be complicated by the nature of the investors and lenders involved.
This program provides a practical guide to restructuring troubled real estate projects.
Part 1 topics include:
- Practical strategies for unwinding real estate deals outside of bankruptcy or litigation
- Negotiating, structuring and drafting the restructuring of failed real estate projects
- Underlying economics and tradeoffs of real estate restructuring
- Types of sellers and their impact on restructuring – individual owner, institutional, joint venture, private equity
- Complications and limitations involving syndicated loans, CMBS loans, and REMICs
- Navigating seller issues – personal guaranties, ongoing management fees, upside participation, reputation