Distressed CRE Debt Acquisitions, Financings and Asset Management

Distressed CRE Debt Acquisitions, Financings and Asset Management

In this new era of real estate finance, investors in troubled commercial real estate (CRE) debt need legal advisors with the skills, acumen and — most of all — experience to handle these complex transactions. Over the past five quarters alone, the distressed CRE debt acquisitions, financings and asset management team of Hunton & Williams LLP has represented investors in over $6 billion of purchases of sub- and non-performing loans in all asset classes.

We represent private equity firms, opportunity funds, national banks and investment partnerships in the full range of CRE debt-related investments. We routinely negotiate acquisition term sheets, conduct confirmatory legal due diligence, and prepare loan abstracts, material issue spreadsheets, title review reports and bid packages. We also review, analyze and negotiate loan sale agreements and associated closing documents, and negotiate financing/repo term sheets, loan and repurchase agreements, and associated closing documents.

Post closing, our lawyers draw on their broad-based knowledge of asset management challenges to provide effective solutions to issues ranging from modifications and discounted payoffs, to enforcement actions and procedures (including bankruptcies, suits on guarantees and receiverships), to foreclosures and deeds in lieu of foreclosures. We also develop and implement effective strategies that address financings, leasing and dispositions of real estate-owned (REO) properties, and other management and operational issues.

Our well-rounded team of senior and junior partners, senior and junior associates, staff attorneys and paralegals enables us to develop an efficient and cost-effective model for performing legal due diligence on acquisitions of large portfolios of CRE loans, while delivering quality and price certainty.

As a highly integrated unit within our full-service, global law firm, we understand when to draw on — and how to work closely with — our business tax, capital markets and finance, corporate M&A, private equity, bankruptcy, litigation, environmental and other practice groups to bring the full breadth of our experience to each situation and transaction.

Representative Transactions 

  • Acquisition from a large foreign bank of a $4.2 billion non-performing loan portfolio of approximately 150 loans and 5 REO properties, including due diligence of the loan portfolio and handling closing logistics and follow-on financing/repo.
  • Acquisition from a global investment bank of a $100 million non-performing loan portfolio secured by 10 hotels, including handling due diligence of the loan portfolio, contract negotiation and closing logistics.
  • Acquisition of a public hotel company in a take-private merger involving a portfolio of 27 hotel properties, including due diligence of the company, merger agreement negotiation and handling closing logistics.
  • Due diligence review on a $1.9 billion loan portfolio from the FDIC.
  • Deed-in-lieu of foreclosure acquisition of two shopping malls, including contract negotiation and handling closing logistics.
  • Financing of a $65 million hotel purchased from a Wall Street bank, including handling due diligence requests, negotiating all loan documents and coordinating a corporate restructuring in connection with the financing. The collateral included 10 hotel properties.
  • Sale of a $30 million office building in San Mateo County, California, including negotiating the contract and handling all closing logistics.
  • Acquisition from a large national bank of a $480 million non-performing loan portfolio of approximately 200 loans, including due diligence of the loan portfolio, contract negotiation and handling closing logistics and follow-on financing/repo.
  • Acquisition from a large national bank of a $150 million non-performing loan portfolio of approximately 100 loans, including due diligence of the loan portfolio, contract negotiation and handling closing logistics and follow-on financing/repo.
  • Acquisition from a large national bank of a $150 million non-performing loan portfolio, including contract negotiation and handling closing logistics.
  • Repo financing valued at $200 million with a large national bank, including handling due diligence requests, negotiating loan documents and handling closing logistics.
  • Deed-in-lieu of foreclosure acquisition of two assisted living facilities, including contract negotiation and handling closing logistics.
  • Acquisition from a large national bank of a $550 million non-performing loan portfolio of approximately 215 loans, including due diligence of the loan portfolio, contract negotiation, and handling closing logistics and follow-on financing/repo.
  • Acquisition from a large national bank of a $700 million non-performing loan portfolio of approximately 150 loans and 12 REO properties, including due diligence of the loan portfolio, contract negotiation and handling closing logistics and follow-on financing/repo.
  • Acquisition from a large national bank of a $70 million non-performing loan portfolio of approximately 35 loans, including due diligence of the loan portfolio, contract negotiation, and handling closing logistics and follow-on financing/repo.
  • Acquisition from a regional bank of a $300 million non-performing loan portfolio of approximately 85 loans and 26 REO properties, including due diligence of the loan portfolio, contract negotiation, and handling closing logistics.
  • Sale of a pool of sub- and non-performing loans by a global private equity firm.