Practice Group: Distressed Real Estate

The Distressed Real Estate Practice Group draws upon the broad range of the firm’s talent and takes an interdisciplinary approach to efficiently respond to the challenges faced by our clients in the current economic downturn.  With the depth of experience in our Real Estate, Corporate, Banking, Business Financing and Creditors’ Rights, and the Bankruptcy and Reorganization Departments in representing real property owners and developers, lenders, municipal governments, investors, and debtors and creditors in the residential and commercial real estate arenas, we are able to provide customized services to clients who are either seeking advice in disposing of distressed real estate, or are pursuing opportunities in acquiring interests in property. We can assist you in preserving value or mitigating losses in all sectors and levels within the real estate market.

Experience in Fluctuating Markets

Attorneys of our firm have weathered numerous market cycles and have successfully achieved the goals of clients during past downturns.  We  accomplish the objectives and meet the challenging timelines of owners and developers of distressed real estate, lenders holding non-performing loans secured by real property, investors acquiring real estate or loan portfolios, municipalities faced with partially completed communities, and community associations dealing with the financial hardship of their homeowners.  Since the members of this group draw from their experience in their several disciplines, this group is ideally suited to anticipate the challenges of our clients, and to deal with obstacles in meeting those challenges.   A combination of practical business advice and precise legal strategies have consistently yielded cost-effective results for our clients.

For investors seeking to take advantage of the disposition of assets by financially troubled owners, we provide the advice needed to conduct due diligence to gain a full understanding of the legal and business aspects of a contemplated venture transaction and to minimize the legal and business risks that they may otherwise face.

Assets to Assist Clients

The resources of our firm include:

• Real Estate Financing – We counsel lending institutions on converting non-performing assets and avoiding long term ownership of real property;
• Our group also represents borrowers, both owners and investors, in obtaining such financing;
• Bankruptcy and Reorganization – Our lawyers have experience in facing the challenges of insolvencies, receiverships, reorganizations, restructurings, workouts, liquidations, and creditors' rights remedies; 
• Foreclosure – We represent investors who purchase loan portfolios and foreclose the mortgages, counseling clients on the impact that foreclosure process has on workout projects; 
• Corporate - We provide counsel on structuring transactions, strategic alternatives such as joint ventures with lenders;
• Purchase and Sales Transactions – Our lawyers handle the negotiation of contracts to acquisition and financing, with knowledge of the unique aspects applicable to distressed property;
• Banking, Business Financing & Creditors' Rights – We assist clients with financing options and alternatives and the feasibility of joint venture arrangements with lenders;
• Tax – We provide advice regarding the tax requirements involved in the sale, acquisition, ownership, and structure of the transaction;
• Planned Real Estate - We have extensive experience in the analysis, restructuring and termination of residential, commercial, and mixed-use condominium and planned-unit projects evaluation of sponsor liability for warranty coverages, financial obligations and construction defects; assessment of options available to purchasers of unsold interests in developments; and successor registration of projects with the New Jersey Department of Community Affairs (DCA);
• Land use issues - We handle amendments and extensions of existing development approvals,  extensions of existing approvals options of municipalities, and the representation of municipalities with distressed developments;
• Environmental – We monitor and manage the status of environmental approvals and permits, extensions, due diligence and negotiate contracts;
• Redevelopment - We can provide counseling and representation in renegotiating and restructuring distressed or foreclosed redevelopment projects, addressing defaults of redevelopment agreements, including litigation of disputes, and knowledge of potential funding and refinancing options and public financing; and
• Community association – We advise and counsel regarding sponsor obligations, successor sponsor liability for defects, transition, collections actions, and amendments of governing documents.

Credentials Make a Difference to Results

Particularly in challenging times, the deft handling of problematic situations can mean the difference between survival and loss. Our lawyers’ credentials make that a difference to your work. Among the credentials we hold:

• Nearly three quarters of our partners are rated AV, the highest rating by Martindale-Hubbell, the oldest attorney peer rating directory in the United States;
• Best Lawyers rates GRSD one of the best Real Estate Departments in New Jersey;
• Chambers USA directory calls our Corporate Department efficient and highly respected and quotes a source as saying, “If I had a problem, I’d definitely want these lawyers on my side.”;
• Six of our lawyers, more than any other firm in the United States, are elected members of the American College of Real Estate Lawyers; and
• Four attorneys, more than any other firm in the United States, are elected members of the College of Community Association Lawyers.