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SOURCESUMMER2013AGoodwinProcterPublicationForTheRealEstateIndustryEditor-in-ChiefRobertM.HaightJr.EditorsLewisG.FeldmanJohnM.FergusonJohnT.HaggertyDouglasA.PrawChristopherB.PriceAndrewC.SucoProductionJessicaHekmatjahNathanG.LeonardDesignTheCastlePresswww.goodwinprocter.comCopyright2013byGoodwinProcterLLP.Allrightsreserved.Reproductioninwholeorpartwithoutpermissionisprohibited.Thispublicationmaybeconsideredadvertisingundertheethicalrulesofcertainjurisdictionsandshouldnotbeconsideredlegaladvice.ToensurecompliancewithrequirementsunderTreasuryDepartmentCircular230weinformyouthatthecontentsofthispublicationarenotintendedorwrittentobeusedandmaynotbeusedforthepurposeofiavoidingU.S.federaltaxpenaltiesoriipromotingmarketingorrecom-mendingtoanotherpartyanymatteraddressedherein.Eachtaxpayershouldseekadvicebasedonthetaxpayersparticularcircumstancesfromanindependenttaxadviser.MilkenInstituteGlobalConferenceGoodwinProcterwasaproudsponsorofthisyears16thAnnualMilkenInstituteGlobalConferenceApril28-May12013inLosAngelesCalifornia.Ourattorneysandclientswerealongside3000participantsfrommorethan50countrieswhoengagedwith550panelistscoveringtheworldsofnancerealestategovernmenteducationenergyenvironmenthealthmedicalresearchandmedia.PartnerandChairoftheLosAngelesOceLewFeldmanmoderatedapowerhousepanelofrealestateindustryleaderswhosharedtheircandidviewsoftodayscommercialrealestatemarketsrecovery.VisitGoodwinProcter.comtowatchthepanelandlearnmoreaboutourinvolvementinthecommunity.GOODNEWSIn1985afteralmost100yearsTheCoca-ColaCompanyreplacedtheoriginalformulaforitsnamesakesoftdrinkforanewformuladubbedNewCoke.Itisunclearwhythecompanyreplaceditscentury-oldformulabutonethingisclearthenewandimprovedbrandwasabust.LessthanthreemonthslaterthecompanyannouncedthereturnoftheoriginalformulawhichwasrebrandedasCokeClassicuntilNewCokewasociallydiscontinuedin2002.TheFordMotorCompanywasfoundedin1903survivedtheGreatDepressionandhasbeenanationalandworldwideleaderinautomobilemanufacturing.Initsrst50yearsFordintroducedseveraldozendierentmakesofcarseachwithvaryinglevelsofsuccess.Butin1957ForddecidedthatitsnewestproducttheEdselwasworthyofFordsmostelaborateproductlaunchinits50-yearhistory.September41957wasdubbedEDaytointroducethenewbrandtotheU.S.market.OnOctober131957FordsponsoredTheEdselShowtoshowcaseitsnewcar.Itopped.FordceasedproductionoftheEdselin1960havinglost350milliononthecarin1950dollars.NewandImprovedissometimesneither.Emergingfromthecrashof2008andthedicultyearsthatfollowedtherealestatemarketisattemptingitscomeback.Unlikeaproductthatisimprovedwithnewpackagingtasteorcolorweexploreinthesepageswhetherrealestateisimprovedthroughnewregulationsandstricterunderwriting.ThefourarticlesinthiseditionofREsourcehighlightthevariouschangesthatmakeupaportionofthenewandimprovedrealestatemarket.ChrisPriceandMarkLochiattodescribethenewCMBSmarketwithacomparisontothepriorCMBSmarketthatsueredsomuchduringtherecession.SamanthaLakeCoghlanandGlynnBarwickexploreEuropeanlegislationimpactingthemarketingandmanagingofrealestatefundsprovidinghelpfulinformationtothosenon-Europeanmanagersseekingtoinvestoverseas.CaliforniareactedtotherecessionbyeliminatingredevelopmentagenciesandLewFeldmanandDougPrawillustratetheopportunitythatawaitsinvestorsastheformerredevelopmentagenciesselltheirrealpropertyassets.SyndicationofloansisawayofreducingtherisksofholdingloansonthebooksandDeanPappasandAlisonWaisdiscussborrowerissuesinthesesyndicatedloans.Therealestatemarketisattemptingtoxtheperceivedproblemsthatledtoorwasaconsequenceoftherecessionbyrollingoutitsnewandimprovedproducts.WilltheseproductsyotheshelvescausingustocelebrateastrongermoreprosperousmarketOrwillwebesippingNewCokeinourEdselsOnlytimewilltell.RobertM.HaightJr.Editor-in-Chief