Real Estate Services Attorney in Beverly Hills, California
What can you offer real estate developers who have troubled projects?
What can you offer real estate developers who have troubled projects?
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What we offer real estate developers
with troubled projects is assistance and
insight with loan workouts and other
types of resolutions to projects that
have gone underwater. So lately and in
particular in the hospitality industry,
a lot of hotel developers and hotel
projects and other hospitality type
projects have suffered a significant
decrease in value. Sometimes putting the
value of the project underwater.
Uh meaning that the project isn’t worth
as much as the loans against it. Now
this is bad both for the hotel
developer, but it is also bad for the
lender who doesn’t want to to take over
a hotel because they’re not in that
business. uh in nor do they want to lose
money um selling the hotel at a
distressed price. So what we offer is
the cooperation and a synergy between
the hotel developer and the lender to
help them get together to maximize the
value of the project and the enterprise.
usually to let the hotel developer stay
in a management position because they’re
the best people to manage the hotel and
enter into agreements where the hotel
developer can can maintain an interest
in the building and in the property and
in the project and in the development
while at the same time maximizing what
is the potential return for the lender.
Therefore, at the end of the day, the
lender gets the best return they could
get given the circumstances and the
hotel developer has not lost everything.
they can still tell their investors that
they still have their interest in this
project and they’re still deriving
revenue and performing the management
function for for the project. And so
it’s the best situation for both of them
and it makes the most of the situation
for for both the lender and the
developer rather than them fighting
which takes the value available and
diminishes it for all concerned.
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Los Angeles, CA real estate attorney Steven Morris talks about what his firm can offer real estate developers who have troubled projects.
