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In today’s commercial real estate market, commercial loans are often pooled together to create commercial mortgage backed securities (CMBS). These loan pools typically have several tranches. Each varies in credit quality and payment priority. The first-to-be paid tranches of bondholders usually possess investment grade securities. These are the A class bondholders. The last……
So many shopping centers are struggling to stay afloat during the pandemic. Even with a vaccine, many experts say that the face of retail shopping has changed forever. How many people will permanently shop online once things return to normal? Since the pandemic began, mall owners have had to contend with stay at home orders, orders limiting occupancy, extra precautions for workers and……
It’s been a very long year for our friends in the retail and hospitality industry. Many mall and hotel owners are barely hanging on. Many are in default although special servicers have not actively sought to foreclose on most defaulted properties. In this post we look at the current state of affairs for project owners and what the future holds. When we last wrote an update (October……
Anyone who owns an office building, shopping center or other commercial space has probably seen their property values decrease since the pandemic began. Particularly hard hit are hotels, especially those in tourist areas. The Financial Times reported in September that values are down an average of 27% with hotels in some areas seeing even larger drops. The article sites a……
[This post is taken from court documents and a story published by Law360. Although we represent the Plaintiffs in the lawsuits, we do not comment on pending litigation.] Many commercial projects are financed with CMBS loans. Short for “Commercial Mortgage Backed Securities,” CMBS loans start out like a regular loan but once the loan closes, the lender bows out. If……
[Editor’s Note: Our firm typically does not take consumer cases. Our practice is limited to actions where people and businesses have suffered out-of-pocket losses of $5 million or more. We also represent commercial borrowers with mortgage of a similar size or larger. While we do not typically accept consumer cases, we have taken class action cases against lenders. The average consumer……
Our phones have been ringing off the hook. Hotel and mall owners need help. The hospitality and retail industry went into crisis mode virtually overnight. According to Fitch Ratings, 2,600 commercial borrowers have already sought help. And that was in just two weeks of March! We suspect many borrowers were unable to make their April payments. With little end in sight, we think the situation will……
As lender liability law firms go, we are one of one of the few that only represent borrowers. Never banks, special servicers or lenders. Our mission is to protect property owners from predatory lenders. Today many borrowers are at risk. The COVID-19 pandemic has everyone in the hospitality industry concerned. After you read what some banks are planning, you will also be angry. Earlier……
Yesterday Goldman Sachs predicted America’s GDP for the 2nd quarter would plunge a breathtaking 24%. Previously, the largest drop in U.S. history occurred in 1958. That was just 10%. Despite all the doom and gloom, both the government and private sector are working together to keep businesses operating and people employed. The exception is LNR Partners, one of the largest CMBS loan……
[Editor’s Note: This post originally appeared in September 2014 on our sister site Mahany Law. The post has been rewritten and moved to this site. Important information appears at the end relative to the coronavirus pandemic and its impact on the hospitality industry.] Imagine that you are a borrower on a major commercial real estate project. Your project has plenty of equity, but……
for Hotels, Malls and Other CMBS Borrowers March 15th 2020. The City of Boston closed bars and restaurants in South Boston section of the city. Disney is closed. Colleges have sent students home. Airlines are flying near empty planes. Cruise ships are empty. New York Governor Cuomo created a one mile quarantine “containment zone” in New Rochelle. We are in the midst of spring……
Borrowers’ Nightmares from CMBS Funded Loans Much of our lender liability practice revolves around borrowers in CMBS loans. Although down in number from their heyday in 2008, they are still in use and many borrowers seek them out. While they may look attractive at first, they often catch borrowers off guard. CMBS is short for Commercial Mortgage Backed Securities. CMBS……