Distressed Real Estate

Our attorneys provide nationwide counsel and interdisciplinary solutions to a range of clients including lenders, private equity investors, specialty finance firms, borrowers, debtors, developers, municipalities, investment banks, landlords, receivers and tenants.

Pre-workout services: For lender clients, we perform pre-workout analyses for troubled loans, loan portfolios and lender liability avoidance by utilizing the experience of our seasoned real estate and restructuring practitioners. Coupled with our environmental, corporate and tax lawyers as needed, the distressed real estate team assists clients in performing rapid due-diligence reviews for key components. For borrower or debtor clients experiencing over-leveraged or underperforming holdings, we perform due diligence and asset cleanup, develop alternative strategies to address lender concerns and, if necessary, provide pre-bankruptcy planning.

Workouts: In troubled real estate workouts, McGuireWoods helps clients identify and implement an array of solutions for their specific needs. We assist lender and borrower clients with all aspects of loan workouts, including forbearances, loan modifications, project entitlement and development issues, and negotiations to bring lenders, borrowers and other interested parties together to successfully restructure and document their deals. The team also provides counsel in all types of real estate matters in bankruptcy, receiverships and other insolvency proceedings, including single-asset real estate case issues, adequate protection of the lender’s interest in collateral, stays against lien enforcement, valuation of collateral, assumption or rejection of leases, and restructuring loan terms through a confirmed plan of reorganization.

Enforcement actions: When enforcement actions are necessary, our skilled restructuring, litigation and real estate lawyers work closely and efficiently to pinpoint the most effective remedies for our lender. For example, the team handles matters including judicial and nonjudicial foreclosure proceedings, deeds-in-lieu, receiverships, deficiency collections and related litigation. We defend lenders against lender liability claims, countersuits and other claims arising from distressed real estate loans, in state and federal courts across the United States.

Investment opportunities: Clients use our distressed real estate team’s services for their investments in troubled real estate deals. Investments may come as acquisition (or disposition) of all asset types, including commercial, industrial, retail, office, mixed-use, multifamily, single family, warehouse, condominium, residential, or hotel and resort. Investments may also occur as a mezzanine loan, a joint venture formation or a cash infusion with a preferred return. Alternatively, clients seek out our services to buy or sell notes or other debt instruments, effectuate bulk sales and auctions, and consolidate rights and liens prior to remedy execution. McGuireWoods also draws upon the skills of our corporate and tax lawyers to structure investment transactions favorably for clients.

REO or investor assets: In the event an asset is held, post foreclosure or post deed-in-lieu, whether by a lender client in REO or an investor in a portfolio, our distressed real estate team uses its depth of experience to resolve outstanding issues relating to entitlements, community associations, zoning, permitting, municipal relationships, leasing and environmental issues. Whether a client plans to hold the asset for a period of time while waiting for a stronger market, or intends to instantly reposition the asset and sell it into the current marketplace, our experience covers the sale and acquisition of real property assets, including marketing and brokerage issues, for lenders and investors.

Specialty services, leases, municipalities, CMBS: Our lawyers counsel landlords and tenants confronting potential or actual bankruptcy from one or both parties to a lease. We also provide advice to municipal law clients regarding their bonds and permits for distressed real estate situations and their obligations regarding the development of distressed real estate sites.