Practice Strengths

The current state of the real estate and capital markets has created significant opportunities and challenges for investors of all types. Businesses affected by the real estate and capital market turmoil require creative solutions for disposition of distressed assets, sound advice on evaluating new opportunities, and overall legal guidance throughout these turbulent times.

To meet those diverse needs, Baker Hostetler has organized its Distressed Real Estate Assets capabilities. This nationwide, multi-disciplinary group provides clients with direct access to experienced practitioners who regularly deal with complex financing, acquisition, disposition, restructuring, litigation and bankruptcy issues. In addition, the Distressed Real Estate Assets effort draws upon the resources of attorneys in a number of related practice areas including corporate, employment, tax, environmental and government relations to provide quality, cost-effective legal services.

Our Distressed Real Estate Assets practitioners regularly work with lenders and other financial institutions, developers, asset owners, capital investors, private equity companies, investment bankers and other parties active in this complex marketplace. For those clients, our attorneys handle a variety of matters including:

• Analysis of reacquired assets targeted for redevelopment or sale
• Acquisition, disposition, restructuring and development of distressed real estate, debt, lease arrangements and other financing products
• Formation of investment structures for acquisition of assets
• Loan workouts, forbearances, deeds-in-lieu, foreclosure proceedings and other debtor/creditor enforcement actions
• Lender and intercreditor matters
• Structuring, negotiating and documenting financing
• Reorganization and liquidation in and out of bankruptcy
• Addressing relevant tax and regulatory issues

Our Distressed Real Estate Assets practitioners have experience that spans a variety of industries and relevant areas:

• Representation of publicly traded REITs in real estate debt restructuring
• Representation in the purchase of a pool of commercial property loans valued at over $25 million
• Representation of construction companies in bankruptcy proceedings filed by subcontractors and suppliers
• Representation of bonding companies on distressed construction projects
• Representation of creditors in hospital/facility bankruptcy and workout proceedings, which involve distressed real estate assets in the healthcare arena
• Representation of a possible buyer of one of Orlando's highest-profile troubled real-estate development projects
• Handled 400-plus limited partnership workouts with lenders in connection with the Cardinal Industries consolidated bankruptcy matter

Workouts and Bankruptcy

Baker Hostetler advises clients in complex, high-profile and strongly contested bankruptcy proceedings. We play a key role in many major bankruptcy cases in the United States, advising debtors, creditors and committees in national and international bankruptcy cases. Our more than 30 bankruptcy, reorganization and creditors’ rights attorneys have extensive experience in out-of-court workouts, complex reorganizations, refinancing and bankruptcy proceedings. They have particular experience with distressed credits including foreclosures, forbearance agreements, receiverships and the creation and/or liquidation of security interests.

As part of the Distressed Real Estate Assets group, these attorneys work closely with their litigation, real estate and tax colleagues both to safeguard client interests in bankruptcy situations and to leverage opportunities with acquired assets.

Real Estate Asset Program

Our Real Estate Asset Program (REAP) lawyers assist businesses through the evaluation of their real estate and facility portfolios, identifying ways to gain fiscal, management and financial value. Additionally, we assist businesses in managing their real estate holdings so the companies can focus on core business objectives. Our goal is to convert real estate holdings from a liability to a performing asset.

Innovative management of corporate property and facilities poses tremendous real impact opportunities for both cost savings and core industry advantage. Baker Hostetler attorneys can assist in lease negotiations and renegotiations, corporate relocations, acquisitions, disposition of excess land/holdings, financings, tax incentives, forensic lease review and many other creative ways to create value.

Our attorneys have found that many companies decentralize the treatment of real estate assets due to its transactional and regional nature leading to missed opportunities. Our REAP lawyers evaluate portfolios as a whole, considering lease arrangements, occupancy, excess space, locations, tax and environmental considerations. Recommendations may include creative methods for maximizing property use, alternative ownership structures, and the utilization of tax incentives and abatement programs.

For many of our clients, we function as a global real estate portfolio advisor and manager. We offer strategic planning for clients’ real estate operating structure and process, counsel in assessing excess properties and coordination for the disposition of properties. Our preferred provider relationships make us a leader in outsourcing management.

Finally, our real estate attorneys assist clients with the legal aspects of owning, leasing and financing headquarters, multi-locations, distribution facilities and/or production centers.