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Navigating the Storm: Strategies for Distressed Commercial Real Estate Loans

Navigating the Storm: Strategies for Distressed Commercial Real Estate Loans

May 09, 2024
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BCLP Partner Varuna Bhattacharyya and Associates Chase Sandler and Matias Gallego-Manzano co-authored, with valuable assistance from David Holmberg, Elizabeth Goldberg and Andre Smith, an article in Law360 addressing the navigation of the significant challenges currently facing  the U.S. commercial real estate market as a record number of loans — a total of $2.2 trillion anticipated by the end of 2027 — are approaching maturity against the backdrop of a variety of distress scenarios.  

As the market grapples with rising interest rates, decreased property values and lower occupancy rates due to remote work, the authors highlight two viable alternative exit strategies to consider: deed-in-lieu of foreclosure and the consent foreclosure.

Varuna, a seasoned commercial real estate finance lawyer, provides pragmatic solutions to financial institutions and real estate funds in single-lender and agented, multi-lender construction and permanent loans, mezzanine loans and other leveraged financings across local and national markets. Chase advises commercial real estate lenders on various loan types secured by diverse asset classes nationwide. Matias, a member of the firm's Business & Commercial Disputes Practice Group, actively handles litigation involving complex business transactions, commercial contract, and real estate disputes. All three, as well as the contributors, are members of BCLP’s Distressed Real Estate Task Force, a cross disciplinary team of attorneys from both the litigation and transactional practice areas who specialize in real estate loan workouts, foreclosures and providing alternative and creative strategies to address distressed real estate. 

Related Practice Areas

  • Real Estate Finance

  • Real Estate Sector

  • Real Estate

  • Real Estate Disputes

Meet The Team

Varuna Bhattacharyya
+1 212 541 2196

Meet The Team

Matias Gallego-Manzano
+1 212 541 2048

Meet The Team

Varuna Bhattacharyya
+1 212 541 2196
Matias Gallego-Manzano
+1 212 541 2048
This material is not comprehensive, is for informational purposes only, and is not legal advice. Your use or receipt of this material does not create an attorney-client relationship between us. If you require legal advice, you should consult an attorney regarding your particular circumstances. The choice of a lawyer is an important decision and should not be based solely upon advertisements. This material may be “Attorney Advertising” under the ethics and professional rules of certain jurisdictions. For advertising purposes, St. Louis, Missouri, is designated BCLP’s principal office and Kathrine Dixon (kathrine.dixon@bclplaw.com) as the responsible attorney.