On March 5, 2024, the Supreme Court of the State of New York, ruled that an obvious scriveners error in a guaranty, exempting a guarantor from full recourse liability for the loan’s debt, could be corrected to impose personal...more
The New York County Supreme Court recently held that in the event of foreclosure, a receiver can be appointed, regardless of necessity, when the parties have contracted for such appointment. 24 West 57 APF LLC (“Defendant”)...more
4/3/2024
/ Borrowers ,
Contract Terms ,
Court-Appointed Receivers ,
CPLR ,
Ex Parte ,
Financial Services Industry ,
Foreclosure ,
Mortgage Lenders ,
Mortgages ,
NV Supreme Court ,
Real Estate Transactions ,
Receivership ,
Wells Fargo
In a recent opinion out of the U.S. District Court for the Northern District of Alabama, the newly-effective Corporate Transparency Act (“CTA”) has been found unconstitutional. In National Small Business United v. Janet...more
4/2/2024
/ Anti-Corruption ,
Anti-Money Laundering ,
Beneficial Owner ,
Congressional Authority ,
Constitutional Challenges ,
Corporate Transparency Act ,
Financial Crimes ,
FinCEN ,
National Security ,
Real Estate Transactions ,
Regulatory Requirements ,
Reporting Requirements
In light of the current economic climate, real estate lenders and borrowers will certainly be communicating with one another frequently concerning potential loan modifications and accommodations. It is prudent for lenders to...more
Volatility, prudence, cautious optimism, outright fear, stagnation, doldrums. These and many other terms are being bandied about concerning the current state of the real estate markets.
Needless to say, we are in 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
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)
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
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
Lenders often require their borrowers to be “special purpose entities” in real estate transactions. This is a way that lenders can mitigate their bankruptcy risk in the event that the borrower or any of its parent entities...more