Distressed Real Estate

When the real estate industry faces instability during challenging times, Goodwin’s team of real estate lawyers are prepared to counsel its clients through the distress and market disruption. We work with lenders, borrowers, purchasers and sellers, and investment managers across the globe to implement structures, as well as transactional and litigation solutions that produce successful results.

Our multi-disciplinary approach to real estate workouts, restructuring and distressed situations brings together the expertise of our Real Estate Industry group, Financial Restructuring, Tax, Litigation and Securities practices. Our team of broadly skilled practitioners have guided our clients through multiple real estate market cycles. We regularly represent publicly traded real estate companies, institutional advisors and fund managers, investors and operators, as well as lenders and other holders of debt interests in seeking to preserve value in an unstable market and to bring resolution to transactions and investments in distress.

We counsel our clients in all areas of real estate-related workout, restructurings and distressed situations, including advising:

  • Borrowers and creditors in connection with loan defaults and remedies, including mortgage and mezzanine loan foreclosures, out-of-court and in-court restructurings, mortgage and mezzanine loan workouts, discounted loan pay-offs, lease negotiations and change of control transactions.
  • Fund sponsors with regard to portfolio-level financing issues.
  • On structuring and executing acquisitions of real estate debt, including “loan-to-own” transactions, and by borrowers’ own real estate debt and discounted pay-offs.
  • Real estate fund managers with concerns raised by limited partners, including bankruptcy and requests to modify limited partner capital commitments or transfer their fund interests.
  • Investors in real estate joint venture transactions with respect to available rights and remedies, including removal and replacement of operating partners, contested buy-sells and remedies for failures to fund capital commitments.
  • Borrowers, equity investors and co-lenders in lender funding defaults on credit facilities and construction loans.
  • Owners and creditors on lease characterization, fraudulent conveyance and preferences, substantiate consolidation, cash collateral and debtor in possession financing, adequate protection and plan confirmation.
  • On the interpretation and exercise of force majeure, impossibility and material adverse effect provisions in loan documents and their interplay with other transaction documents.