It is estimated that over $1.5 trillion of U.S. commercial real estate debt will come due for repayment by the close of 2025. This wave of maturing debt combined with the recent unprecedented hikes in interest rates and, as some Wall Street firms estimate, a meaningful decline in commercial real estate valuations, exacerbated by the collapse of some notable small and regional banks, has caused volatility and uncertainty in the real estate market and the businesses related to this sector of the economy.
Herrick is Real Estate
Our longevity in the industry has allowed us to develop deep relationships with New York City’s leading real estate stakeholders and organizations as well as the distressed investing community. This robust network enables us to understand the current market, connect key players, make deals happen and enable our clients to be opportunistic in this distressed market.
Distressed Real Estate Team
Herrick’s multi-disciplinary Distressed Real Estate Team, comprised of attorneys from our Real Estate, Tax, Corporate, Finance, Litigation, Restructuring and Bankruptcy practices, is uniquely positioned to help clients maximize opportunities and manage risks associated with the current distressed and uncertain real estate market. Our powerhouse team has a long-standing reputation in the marketplace, vast experience handling all facets of the real estate deal cycle and draws upon decades of experience representing lenders and owners in trying times.
Out of Court Transactions
We are at the forefront of the real estate workout and restructuring arena with market-leading experience representing borrowers, lenders and preferred equity investors in workouts and restructurings of distressed debt, loan recapitalizations, deed in lieu transactions and loan sales. Our Distressed Real Estate Team has significant experience representing our clients in the sale and acquisition of distressed real estate of all asset classes. We’re able to assist our clients in developing and executing strategies to maximize recoveries while avoiding the costs and delays inherent in court proceedings.
Litigation
Our real estate litigators are fully integrated into the Distressed Real Estate Team, enabling us to efficiently represent our clients’ interests when litigation becomes necessary. Because we are acknowledged leaders in foreclosure law, Herrick is the “go to” firm for consumer and investment banks, insurance companies, hedge funds, servicers of securitized debt, borrowers in commercial real estate mortgages and with UCC foreclosures involving billions of dollars of loans on intercreditor disputes and joint venture partner disputes.
Restructuring
Our seasoned restructuring lawyers have vast experience in all facets of in and out-of-court real estate restructurings and related litigation. We represent asset and investment managers; investment funds and fund managers; public and private companies; official and ad hoc creditor committees; debtors; creditors; and distressed investors. We have extensive restructuring and litigation experience concerning real estate sales in connection with Section 363 of the Bankruptcy Code; confirmed Chapter 11 plans seeking relief from automatic stays to pursue foreclosures; opposing “cram-down” Chapter 11 plans; contesting valuation proceedings; inter-creditor disputes; and other bankruptcy-related litigation.
Areas of Focus:
- Acquisition and sales of distressed real estate of all asset classes
- Acquisitions and sales of distressed commercial real estate loans, including financing distressed debt acquisitions
- Loan workouts and restructurings
- Repositioning of distressed projects
- Intercreditor disputes
- Valuation disputes
- Corporate governance disputes
- Partnership and LLC disputes
- Deed in Lieu of Foreclosure
- Mortgage loan Foreclosure
- UCC (Mezzanine Loan) Foreclosure
- Chapter 11 and bankruptcy-related litigation
- Debtor-in-possession (DIP) Financing
- Chapter 11 Reorganization Plans and Cram-downs
- Official and ad hoc creditor committee representation
- Bankruptcy Code Section 363 and Chapter 11 plan real estate sales
We invite you to read more about our full suite of services across multiple practices below: