Our Practice
Distressed Real EstateAttorneys in the real estate, bankruptcy, tax, and commercial litigation practice areas at Cairncross and Hempelmann have been involved in some of the most significant and complex distressed real estate transactions in the Northwest. As these are unique times in the real estate world, clients need lawyers that are skilled and experienced in handling all aspects of troubled real estate at all stages of the cycle. We represent a diverse group of clients including developers, investment funds, commercial banks and individual investors with a wide variety of residential, mixed-use, retail and commercial properties, and assist in diverse capacities, including the following:
- Representing debtors and lenders in bankruptcy proceedings and pre-bankruptcy planning, including strategic bankruptcy representation of borrowers to protect equity in troubled assets;
- Negotiating loan modification, work-out, and forbearance agreements for borrowers and lenders on loans ranging from $1,000,000 to $275,000,000;
- Assisting purchasers of troubled real estate secured loans from financial institutions and government agencies;
- Representing borrowers, lenders and purchasers in non-judicial foreclosures and deed in lieu transactions, especially with respect to the survival of potential personal liability under personal guaranty agreements;
- Representing lenders, receivers and purchasers in receivership proceedings and in the development, operation and sale of foreclosed properties;
- Assessing tax issues and mitigating the effects of unintended tax consequences;
- Representing landlords and tenants in lease workouts and modifications, as well as landlord or tenant bankruptcy and negotiation of subordination and non-disturbance agreements;
- Working with special servicers of CMBS loans to achieve asset liquidation;
- Restructuring troubled condominium projects on behalf of developers and lenders;
- Representing preferred equity investors and mezzanine lenders in optimizing outcomes and developing exit strategies for distressed assets;
- Investor representation in loan/note purchase opportunities and strategic recapitalization of distressed projects;
- Providing guidance and representation through all aspects of distressed real estate litigation including prosecution and defense of lender liability claims, breach of commitment claims and bad faith claims; and
- Working with owners facing loan de-leveraging payments, suspension of credit, acceleration of loan maturity dates, and other related matters.
- Currently represent numerous private equity funds positioned for opportunistic acquisition of troubled assets including real estate and loans secured by real estate;
- Currently serve as lead counsel for national lender in its work-out and possible foreclosure of one of the largest residential condominium projects in the state;
- Currently serve as lender’s counsel in various foreclosure matters with total loan value of $20,000,000;
- Currently serve as lead counsel in connection with pending non-bankruptcy workout liquidation of private real estate development and construction mortgage lender with approximately $100,000,000 of assets and $95,000,000 of bank liabilities; also responsible for managing preparation of accounting and financial presentation in connection with workout proposals;
- Currently serve as counsel for property owner with respect to strategic repositioning of CMBS shopping centers with a total value of $700,000,000;
- Currently serve as lender’s counsel in recovery in Chapter 11 filing valued at $50,000,000;
- Currently representing Creditor’s Committee of Chapter 11 home developer with claims over $60,000,000;
- Currently represent owners in restructuring multi-family loans in excess of $200,000,000;
- Represented Secured Creditors/Liquidating Trust Committee on claims in excess of $80,000,000;
- Represented debtor-in-possession and secured lender in securitized lease business with claims totaling over $230,000,000;
- Served as creditor’s counsel in lease financing company, with total claims of $97,000,000;
- Served as developer’s counsel in numerous workout negotiations, with total lender claims totaling between $90,000,000 and $110,000,000;
- Served as counsel to debtor’s majority owner in guarantee protection matter with range of claims between $10,000,000 and $20,000,000; and
- Represented multiple developers and owners to implement capital call strategies on investors necessary to fund negative cash flow, establish reserves and make de-leveraging payments.
