Overview
By its very name, distressed real estate signals the presence of significant challenges. For savvy real estate companies, investors, lenders and other parties, however, such assets can provide opportunities to strengthen or restructure their portfolios to increase value and better align holdings with organizational goals.
At McDermott, our global distressed real estate team combines the experience of lawyers – drawn from our highly regarded corporate, real estate finance, restructuring, bankruptcy, litigation and tax practices – to provide focused, outcome-driven representation on all aspects of nonperforming loan workouts, restructurings, administration and dispositions.
Core Strengths
- Global coverage: Our lawyers are located in nearly two dozen cities across the United States, and Europe
- Comprehensive approach to real estate challenges: We offer a holistic workout and restructuring experience that covers every angle of real estate engagements: both in court, including bankruptcy and out of court resolutions, deed-in-lieu and other acquisitions, dispositions, joint ventures, debt restructuring, mezzanine (UCC) and mortgage loan foreclosures, innovative sale-leasebacks, recap and monetization transactions
- Industry-focused experience: We have in-depth knowledge of sectors in which real estate assets play a major role, including office, multifamily, retail, industrial, healthcare, and hospitality
- Ability to scale: Our full-service real estate team has represented clients in some of the most complex matters and scenarios involving more than $300 billion in closed transactions
- Agility and creativity: We have helped clients respond and adapt quickly to fast-developing, global events, including the 2008 financial crisis (during which we helped bank clients remove from their balance sheets and achieve regulatory capital compliance with respect to more than $6 billion of nonperforming loans while maintaining their upside potential) and the COVID-19 pandemic (during which we helped several lenders avoid margin calls and other liquidity stress for their levered portfolios while enforcing their remedies with respect to underlying assets and working with borrowers to preserve, maximize and realize value)
We provide market-leading strategies and bespoke solutions to a broad range of clients, including:
- Commercial banks, investment banks and other private, governmental and financial institution lenders
- Loan servicers including special servicers
- Insurance companies
- Private equity funds, sponsors and fund managers
- Real-estate operating companies and real-estate investment trusts (REITS)
- Creditors’ committees, including secured, unsecured and equity creditors
- Owners, developers and tenants
- Contractors
