Established methods of determining value include computing the present value of observable cash flows and inferring value from other observable valuations — otherwise known as “relative” valuation or “comparables.”[1] But when observable cash flows or comparable valuations are not available, a third approach is to value optionality.
Section 365(d) of the Bankruptcy Code draws a clear distinction between residential and nonresidential leases, and those distinctions can impact a debtor’s rights.
ABI’s Real Estate Committee started off its 2025 webinar series with a bang, interviewing Brandon Svec with CoStar Group for a Commercial Real Estate Economic Outlook. Stay tuned for announcements regarding the section’s additional webinars still to come this year.
Something happened in 1991 that, ever since, drove a bull market in just about everything. No assets rode that bull better than commercial real estate. But what if that bull is back in its pen, and will be there for a long time? If so, the nature of 30-plus years of commercial real estate investment just changed. What may seem to be evolving is, in fact, here and now. The change has happened.
Section 365(l) of the Bankruptcy Code (“section 365(l)”), which entitles a landlord to “require a deposit or other security for the performance of the debtor’s obligations under the lease substantially the same as would have been required by the landlord upon the initial leasing to a similar tenant” when a tenant seeks to assume and assign a lease, is an important landlord protection, yet it is
Subchapter V presents interesting challenges for landlords, including increased uncertainty regarding the timing of payments. Specifically, 11 U.S.C.
Elementary school student Eric Theodore Cartman described his experience at Casa Bonita as “totally” worth making an entire town panic, losing all his friends and going to juvenile hall for a week in an episode of the TV show “South Park.” For more than four decades, Casa Bonita, located in Denver, has been an iconic Colorado “eatertainment” establishment offering dining and entertainment, incl
The pandemic and its enormous global impact clearly demonstrate the latent volatility of hospitality real estate. The lodging industry is perhaps the most labor capital-intensive sector of real estate, and it is unequivocally being stressed by the pandemic. National U.S.
When selling significant assets in chapter 11, more often than not debtors and their professionals proceed with a stalking-horse bid. On occasion, however, we do see assets valued at $100+ million on the auction block without a stalking-horse bid. One such example is the currently pending chapter 11 case of In re Wardman Hotel Owner LLC (the debtor), pending in the U.S.
The chairs of the Real Estate Committee thank all the committee members for their support during this past year. COVID has had quite an impact on real estate lending and real estate bankruptcies. A major (and obvious) theme was the force majeure provision in contracts, and whether the COVID pandemic triggers the clause to, inter alia, excuse rental payments.
This panel provides an overview of some key issues, sectors and trends in real estate from a global and cross-border perspective by examining the status of asset class and related global/regional market conditions, issues confronting stakeholders and the legal tools they are using to manage and reposition assets, and predictions for the balance of 2025. Considerations for U.S. investors in non-U.S.-based real estate projects, as well as the perspectives of certain foreign investors or lenders to U.S. real estate-based projects, also is discussed.
Fraud is an ever-present concern in bankruptcy cases, manifesting in various forms from False Claims Act violations to Ponzi schemes. This panel will provide practical tips and strategies for identifying, addressing and litigating fraud in the bankruptcy context.
The hospitality sector is one of the commercial real estate asset classes that has endured profound changes since the pandemic, both positive and negative. Pent-up demand for travel, flexible work schedules and strong consumer spending are driving demand in some sectors, while remote work has fundamentally changed business travel, which is straining occupancy and profits at properties that historically have relied on this steady stream of business.
Commercial real estate continues to be top of mind for restructuring professionals nationwide, as Federal Reserve interest rate policy to curb inflation is impacting values at the same time as rapid changes in supply and demand within several asset classes have taken hold. ABI's Real Estate Committee is honored to host a commercial real estate economic outlook presentation featuring Martin Lavelle, senior business economist with the Federal Reserve Bank of Chicago, to provide important market intelligence.
This panel will consider ethical issues in real estate bankruptcies involving candor to the court as to out-of-court happenings, considerations for debtor’s counsel and advisors in parsing entity vs. guarantor, and other insider issues.
Commercial real estate continues to be the sector to watch for restructuring professionals, as decreasing property values and increasing interest rates will be colliding with $1.5 trillion of debt maturities over the next four years. This informative program will provide a clear and comprehensive understanding of where the market stands and may be going as we head into the last four months of the year. Where are we in the current economic cycle? How have higher interest rates impacted the commercial real estate market this year, and what will the ramifications be next year?
This panel will discuss what happens when lenders default on paying borrowers for non-monetary reasons, such as covenant or compliance violations on real estate loans like debt-coverage-ratio violations. The lenders’ goal is to regain possession of the real estate for investment purposes and deploy it at higher interest rates. The panelists will discuss the impact and efficacy of this strategy from all angles: institutional lender-side, borrower-side and investor-side.
Sponsored by ABI's Real Estate Committee, Keen-Summit Capital Partners LLC and Summit Investment Management LLC
These overviews from ABI committee experts will arm you with vital information you can use in your practice well into the new year.
