Compliance deadlines for Local Law 97 of 2019 are steadily approaching, with the first reporting date being May 1, 2025, at which time owners of buildings covered by the law will be required to report compliance with the...more
8/30/2022
/ Carbon Emissions ,
Climate Action Plan ,
Climate Change ,
Cooperative Compliance Regime ,
Green New Deal ,
Greenhouse Gas Emissions ,
Local Ordinance ,
New York ,
Real Estate Development ,
Real Estate Market ,
Reporting Requirements
A ground lease is both a conveyance and a contractual agreement between a landlord (the ground lessor) and a tenant (the ground tenant) pursuant to which the ground lessor, as the fee owner of the real property, conveys a...more
On March 30, 2022, the New York State Supreme Court, New York County (the “Court”) decided in Times Square JV LLC v. Walber Broadway LLC that a ground lease-tenant that is in default under the ground lease for failure to pay...more
6/30/2022
/ Breach of Contract ,
Commercial Leases ,
Contract Terms ,
Failure To Pay ,
Ground Leases ,
Landlords ,
Real Estate Transactions ,
Rental Property ,
Right of First Refusal ,
Summary Judgment ,
Tenants
When the interest rate on a mortgage financing is not fixed, the amount that a borrower may be required to pay may fluctuate depending on changes in the underlying index to which the “margin” or “spread” is tied. While a...more
In real estate financing, most loan documents restrict a Borrower’s right to alter the collateralized real property. Alterations provisions in loan documents pertain to any alterations, improvements, or demolition of any...more
The New York State Supreme Court, New York County Commercial Division (the “Court”) decided in U.S. Bank, N.A. v. 342 Property LLC, on February 14, 2022, that a mezzanine lender that is not a party to loan documents that...more
4/27/2022
/ Article III ,
Borrowers ,
Breach of Contract ,
Contract Terms ,
Default ,
Foreclosure ,
Intercreditor Agreements ,
Lenders ,
Membership Interest ,
Mezzanine Lenders ,
Mortgages ,
NY Supreme Court ,
Real Estate Market ,
Standing ,
Summary Judgment ,
US Bank National Association
While some commercial real estate loans are fully funded at loan closing, others are funded in whole or in part through future advances. Some loans provide for future advances to fund tenant improvement work and leasing...more
It is difficult to celebrate economic success when every day on the news we are confronted with unimaginable horrors and human suffering. With this as a backdrop, we would like to offer our comments on the state of the real...more
The New York State Supreme Court, County of New York (the “Court”) decided in Atlas Brookview Mezzanine LLC v. DB Brookview LLC, on November 18, 2021, that an accommodation pledge entered into in connection with a mortgage...more
2/28/2022
/ Borrowers ,
Equity ,
Foreclosure ,
Loan Documentation ,
Loans ,
Mezzanine Lenders ,
Mortgages ,
NY Supreme Court ,
Real Estate Transactions ,
Right of Redemption ,
Security Agreements ,
Unenforceable Contract Terms ,
Uniform Commercial Code (UCC)
On November 10, 2021, the owner of the State Street Financial Center in Boston, Massachusetts defaulted on its debt, consisting of a mortgage loan in the amount of $535,000,000 and three mezzanine loans in the aggregate...more
As we all know, 2021 has been a big comeback year in the real estate industry following the unprecedented COVID-driven challenges of 2020. There are still fundamental changes occurring – using a real estate metaphor, both at...more
Reserves are amounts deposited with a lender as security for an obligation expected to occur at a future date, and can serve various functions. The following is an overview of typical reserves in a real estate finance...more
On September 2, 2021, New York Governor Kathy Hochul signed into law a new moratorium on evictions and foreclosures for residential tenants and small businesses. Recently, in the case Chrysafis v. Marks, the U.S. Supreme...more
9/30/2021
/ Coronavirus/COVID-19 ,
Due Process ,
Eviction ,
Financial Distress ,
Foreclosure ,
Infectious Diseases ,
Landlords ,
Moratorium ,
New Legislation ,
New York ,
Relief Measures ,
Rent ,
Rental Property ,
Small Business ,
Statutory Authority ,
Tenants
On September 2, 2021, New York Governor Kathy Hochul signed into law a new moratorium on evictions and foreclosures for residential tenants and small businesses. Recently, in the case Chrysafis v. Marks, the U.S. Supreme...more
9/7/2021
/ Coronavirus/COVID-19 ,
Eviction ,
Financial Distress ,
Foreclosure ,
Infectious Diseases ,
Landlords ,
Moratorium ,
New Legislation ,
New York ,
Relief Measures ,
Rent ,
Rental Property ,
Small Business ,
Tenants
On June 29, 2021, in The Gap, Inc. v. 170 Broadway Retail Owner, LLC, the New York Appellate Division, First Department, overturned an earlier decision by the New York Supreme Court and issued a decisive victory to commercial...more
9/2/2021
/ Business Interruption ,
Commercial Leases ,
Commercial Property Owners ,
Commercial Tenants ,
Contract Terms ,
Coronavirus/COVID-19 ,
Frustration of a Common Purpose ,
Infectious Diseases ,
Landlords ,
Rent ,
Rental Property ,
Retailers
On August 26, 2021, the U.S. Supreme Court issued an order vacating the Centers for Disease Control and Prevention’s latest eviction moratorium. Earlier this month the CDC issued an order banning evictions of residential...more
8/30/2021
/ Centers for Disease Control and Prevention (CDC) ,
Coronavirus/COVID-19 ,
Eviction ,
Infectious Diseases ,
Landlords ,
Moratorium ,
Motion to Vacate ,
Relief Measures ,
Rent ,
Rental Property ,
SCOTUS ,
Statutory Authority ,
Tenants
On August 3, 2021, the Centers for Disease Control and Prevention issued a new order banning residential evictions in counties where COVID-19 cases are quickly rising. The CDC’s prior order instituting an eviction moratorium...more
8/19/2021
/ Centers for Disease Control and Prevention (CDC) ,
Coronavirus/COVID-19 ,
Debt Collection ,
Eviction ,
Financial Distress ,
Infectious Diseases ,
Landlords ,
Moratorium ,
Popular ,
Relief Measures ,
Rent ,
Rental Property ,
Tenants
On June 29, 2021, the Supreme Court denied an application by a group of real estate agents and associations to lift the eviction moratorium issued by the Centers for Disease Control and Prevention (the “CDC”). Originally...more
8/3/2021
/ Centers for Disease Control and Prevention (CDC) ,
Coronavirus/COVID-19 ,
Eviction ,
Infectious Diseases ,
Landlords ,
Moratorium ,
Motion to Vacate ,
Relief Measures ,
Rent ,
Rental Property ,
SCOTUS ,
Statutory Authority ,
Stays ,
Tenants
On June 29, 2021, the Supreme Court denied an application by a group of real estate agents and associations to lift the eviction moratorium issued by the Centers for Disease Control and Prevention (the “CDC”). ...more
7/2/2021
/ Centers for Disease Control and Prevention (CDC) ,
Coronavirus/COVID-19 ,
Denial of Certiorari ,
Eviction ,
Infectious Diseases ,
Landlords ,
Moratorium ,
Relief Measures ,
Rental Property ,
SCOTUS ,
Tenants
This is the news we’ve been waiting for but have been a bit reticent to say out loud: the rebound of real estate finance is upon us.
The markets were very active at year-end, and that activity level has continued unabated...more
The United States District Court for the Southern District of New York (the “Court”) decided in Gap Inc. v. Ponte Gadea N.Y. LLC on March 8, 2021 that a retail tenant will not be able to use the COVID-19 pandemic as an excuse...more
6/3/2021
/ Breach of Contract ,
Commercial Leases ,
Commercial Tenants ,
Contract Terms ,
Coronavirus/COVID-19 ,
Counterclaims ,
Force Majeure Clause ,
Frustration of a Common Purpose ,
Gap Inc ,
Infectious Diseases ,
Lease Termination ,
Non-Essential Businesses ,
Rental Property ,
Retailers ,
Summary Judgment ,
Unjust Enrichment
On May 5, 2021, New York Governor Andrew Cuomo signed a bill that extends the moratorium on evictions and foreclosures for residential tenants and small businesses to August 31, 2021. The previous moratorium expired May 1,...more
6/2/2021
/ Commercial Tenants ,
Coronavirus/COVID-19 ,
Eviction ,
Financial Distress ,
Foreclosure ,
Infectious Diseases ,
Moratorium ,
Mortgages ,
Relief Measures ,
Rental Property ,
Small Business ,
State and Local Government
On May 5, 2021, the United States District Court for the District of Columbia (“DC Court”) vacated a nationwide eviction moratorium order issued by the Centers for Disease Control (“CDC”) to help mitigate the spread of...more
5/12/2021
/ Centers for Disease Control and Prevention (CDC) ,
Chevron Deference ,
Commerce Clause ,
Constitutional Challenges ,
Coronavirus/COVID-19 ,
Enforcement Authority ,
Eviction ,
Infectious Diseases ,
Interstate Commerce ,
Landlords ,
Moratorium ,
Relief Measures ,
Rental Property ,
Statutory Interpretation ,
Stays ,
Tenants
On May 5, 2021, New York Governor Andrew Cuomo signed a bill that extends the moratorium on evictions and foreclosures for residential tenants and small businesses to August 31, 2021. The previous moratorium expired May 1,...more
5/6/2021
/ Coronavirus/COVID-19 ,
Eviction ,
Financial Distress ,
Foreclosure ,
Governor Cuomo ,
Infectious Diseases ,
Landlords ,
Moratorium ,
New Legislation ,
Relief Measures ,
Rent ,
Rental Property ,
State and Local Government ,
Tenants
Can contracting parties waive all common law fiduciary duties? That was one of the questions presented to the New York Supreme Court, Appellate Division, First Department (the “Court”) in 111 West 57th Investment LLC, on...more
4/30/2021
/ Breach of Duty ,
Construction Project ,
Covenant of Good Faith and Fair Dealing ,
Delaware General Corporation Law ,
Fiduciary Duty ,
Foreclosure ,
Joint Venture ,
Loans ,
Mezzanine Lenders ,
Mortgages ,
NY Supreme Court ,
Real Estate Development ,
Uniform Commercial Code (UCC) ,
Waivers