Real Estate

This panel will discuss the § 1111(b) election in modern times. It’s not the rule against perpetuities, but it’salso not as simple as your basic loan default. Do you know how to analyze whether making the electionmakes sense? Perhaps more importantly, do you know how to counsel your client through the process?

Sponsored by ABI's Real Estate Committee According to Trepp, $109 billion in commercial mortgage-backed securities (CMBS) loans was issued in 2021. These loans are popular among income-producing-property investors for a variety of reasons, including favorable rates, attractive loan-to-value ratios, a streamlined underwriting process and more. However, given their structure as investment vehicles, technical nuances come into play in workout and restructuring situations because of the special servicers and trustees involved. While bankruptcy filings are rare because filing typically violates a loan covenant known as a “Bad Boy provision," for some borrowers this path makes sense. This program will focus on these issues and more to prepare attorneys, financial advisors and other professionals for future restructuring assignments in this unique space.

This panel will discuss various issues concerning the impact that the COVID-19 pandemic and the economy for the last two years have had on valuations and appraisals. Since cash flow is essential for valuations and operations, the panelists will also discuss the effects of the pandemic on businesses’ cash flow and what can be done to recover and improve cash flow. In addition, the panelists will discuss the sales and auctions of assets during the pandemic period.

This panel will provide an overview and discussion of the effects of the COVID-19 pandemic and return-to-office issues, and what impacts they may have on the commercial real estate industry. The panelists will discuss market data and trends, as well as relevant case law on the valuation of commercial real estate in the context of bankruptcy cases. The panel also will review hypothetical scenarios to emphasize key issues that affect the valuation of commercial real estate in a disrupted and uncertain marketplace.

Sponsored by ABI's Real Estate Committee The private and for-profit college, university and school sector continues to be challenged due to decreasing enrollment, cost structures and increased competition from community colleges, area technical schools and online offerings that students turned to during the pandemic. It is estimated that there are hundreds of these real estate-heavy institutions, which can have campuses with substantial improvements having been made, or they can operate solely in leased space. This program will focus on how the real estate footprint of these institutions can be utilized in connection with other turnaround strategies to achieve a turnaround or restructuring. The discussion will include public/private partnerships for parking, dormitories and more, sale-leasebacks and bridge financing, lease restructurings, monetizing surplus real estate, developing owned real estate, and marketing closed campuses for repurposing or redevelopment.

The senior living sector, already stressed prior to the pandemic, has been upended by COVID-19. This panel will discuss the effects that COVID-19 has had on operational and financial performance, business models past and future, and the real estate valuations of senior living facilities. The panel will also identify what in-court and out-of-court alternatives exist, and will highlight adaptive reuse opportunities for owners and operators of these facilities. Participants will learn about the operational and financial ramifications that COVID-19 has wrought on senior living facilities, the various in-court and out-of-court alternatives available to restructure these facilities, and trends in senior living business models. The panelists also will explore various alternative financing options available for distressed businesses, including sale-leaseback and bridge financing, as well as potential adaptive reuse issues and alternatives for facilities that close.

Rule 3002.1 exists to protect debtors and creditors from unnecessary disputes over the status of current and former chapter 13 debtors’ mortgage loans. A recent Second Circuit opinion (In re Gravel) calls into question the ability of bankruptcy courts to impose monetary sanctions on mortgage-servicers that fail to comply with Rule 3002.1’s requirements. In this session, the panelists will cover both Gravel (and the dissent) and a recent bankruptcy court opinion (In re Blanco) that rejects the reasoning in Gravel. Can the two cases be reconciled? What is the standard that must be established to justify the imposition of sanctions when mortgage-servicers fail to comply with Rule 3002.1’s requirements, and what are the limitations on the amount of sanctions that can be considered appropriate? The panelists will discuss these questions along with additional legal actions and notices that consumer attorneys should take in these cases, as well as using an adversary proceeding in lieu of a motion.

The Eastern and Western Districts of Wisconsin, along with Florida’s Middle District, have all set up successful mortgage-mediation programs. This panel will spill the details on how they did it, particularly the ways in which they used web-based portals for document exchanges. Also on tap: the role of mediators and the court’s role in overseeing order processes and timelines.

Hosted by the Business Reorganization and Real Estate Committees Join this panel of experts as they offer their perspectives on the state of the real estate and real estate-based business economy as we reach the six-month point of the post-COVID-19 recovery period. Armed with the benefit of pent-up demand and states and businesses moving to fully reopen over the summer, plus the start of the lucrative holiday shopping season, these proven real estate restructuring professionals will offer their thoughts on the sectors that have weathered the storm and the factors that will enable some borrowers to restructure, while others will be forced to liquidate. Additionally, the panelists will identify which sectors could see storm clouds on the horizon.

Sponsored by ABI's Real Estate Committee Please join ABI's Real Estate Committee for a dynamic 2022 economic outlook presentation featuring a real estate economist and professionals. Topics will include a review of the industrial, hospitality, retail and office sectors; the impact of inflation on the real estate economy; last-mile logistics; and other timely topics to arm practitioners with important knowledge about the real estate economy. The program will conclude with a question-and-answer period.