Distressed Condo Projects

Turnaround and Workout Strategies

Tuesday, June 26, 2007

About

The landscape has changed: After a prolonged period of unprecedented growth, many developers are facing sluggish sales and an oversupply of available units. Needless to say, this slowdown has put increasing pressure on condo converters and developers—many of whom bought properties and estimated their ROI at the peak of the market.

But not every troubled condo project has to lead to failure.

There are steps that you can take to ride out this storm—and even turn around a failing development. But before attempting a workout, you must know how to negotiate key concessions, agree on new loan terms and guaranties, and overcome potential construction contract hurdles.

ACI has developed this publication from its National Forum on Distressed Condominium Projects to specifically address the unique problems that surface in these strategies and negotiations. This publictation will offer a practical discussion of real-world issues that arise for you and your lenders—and it will offer winning and workable strategies to resolve these issues.

Our faculty, consisting of leading experts and legal advisors for major condo developers and investors, will offer key negotiating advice and detailed knowledge to help facilitate various types of turnarounds. They will guide you through:

  • Being proactive: Assessing the warning signs and calculating where the project is heading
  • Buying time by shifting developer strategies
  • Negotiating lender demands for effective protection
  • Agreeing on restructured loan payments
  • Sidestepping foreclosure and bankruptcy risks

Contents & Contributors

About

The landscape has changed: After a prolonged period of unprecedented growth, many developers are facing sluggish sales and an oversupply of available units. Needless to say, this slowdown has put increasing pressure on condo converters and developers—many of whom bought properties and estimated their ROI at the peak of the market.

But not every troubled condo project has to lead to failure.

There are steps that you can take to ride out this storm—and even turn around a failing development. But before attempting a workout, you must know how to negotiate key concessions, agree on new loan terms and guaranties, and overcome potential construction contract hurdles.

ACI has developed this publication from its National Forum on Distressed Condominium Projects to specifically address the unique problems that surface in these strategies and negotiations. This publictation will offer a practical discussion of real-world issues that arise for you and your lenders—and it will offer winning and workable strategies to resolve these issues.

Our faculty, consisting of leading experts and legal advisors for major condo developers and investors, will offer key negotiating advice and detailed knowledge to help facilitate various types of turnarounds. They will guide you through:

  • Being proactive: Assessing the warning signs and calculating where the project is heading
  • Buying time by shifting developer strategies
  • Negotiating lender demands for effective protection
  • Agreeing on restructured loan payments
  • Sidestepping foreclosure and bankruptcy risks

Contents & Contributors

STRUCTURING REAL ESTATE WORKOUTS
Stuart M. Saft, LeBoeuf, Lamb, Greene & MacRae LLP (New York, NY)

FLORIDA CONSTRUCTION CONTRACTS: WHAT DO YOU DO WHEN IT IS TIME TO SIGN THE CONTRACT?
Kimberly A. Ashby, Akerman Senterfitt

EVALUATING CONDOMINIUM DOCUMENTS IN TROUBLED PROJECTS AND PRE-WORKOUT ANALYSIS
Steven F. Ginsberg, Levenfeld Pearlstein (Chicago, IL)

LOOKING OUT FOR THE LENDER
Josias N. Dewey, Holland & Knight (Miami, FL)

PREPARING FOR AND CONDUCTING WORKOUTS
Robert M. Quinn, Carlton Fields (Tampa, FL)

THE 800 LB. GORILLA: HOW BANKRUPTCY LAW CASTS A SHADOW OVER THE WORKOUT
Francis L. Carter, Akerman Senterfitt (Miami, FL)
John Collen, Duane Morris (Chicago, IL)
David R. Softness, Buchanan, Ingersoll & Rooney (Miami, FL)



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