For those grappling with high borrowing rates, this strategy presents an intriguing alternative, observe Brandt Hollander and Lee Kaplan of Harvest LLP. With interest rates surging to historic highs and lenders pulling back on issuing new loans, it is no secret that deal volume is down significantly in the commercial real estate space. One option …
Read Article from Assumable Multifamily Loans: What Investors Need to Know
On June 29, 2023, several banking regulators – including the Federal Reserve and the Federal Deposit Insurance Corporation –adopted a new Policy Statement on Prudent Commercial Real Estate Loan Accommodations and Workouts. This policy statement provides lenders guidance regarding commercial real estate loans and should be understood by borrowers that may need a loan concession in the rapidly …
Landlords have a few tools to secure a tenant’s payment under a commercial lease – most notably, personal guarantees, security deposits and letters of credit. Landlords should be aware that irrevocable letters of credit are the preferred method of security in the event a tenant files bankruptcy and negotiate their leases accordingly. While the recent …
Across the country, office occupancy has remained stubbornly low following the Covid-19 pandemic, while at the same time, apartment rents have exploded to record highs. This dual crisis has led to calls for the redevelopment of vacant office buildings for apartment use. While at first blush this appears to be a simple solution to both …
The early stages of an insurance claim are often the most critical. Your phone rings – there was an accident at one of your properties, a bad environmental report came in, some worrisome information from an employee is reported. Make no mistake: potential lawsuits are in your future. Even the threat of a claim (depending …
Read Article from How and When to Provide Notice of an Insurance Claim
While economists and pundits may disagree about the likelihood of a recession in 2023, it is important for real estate investors to take steps now to prepare their portfolios for a potential economic slowdown given the stark rise in interest rates over the last ten months. From a legal standpoint, landlords should consider the following …
Read Article from Preparing Your Property Portfolio for a Possible Recession
In response to the COVID-19 crisis, the City of Los Angeles implemented a temporary eviction moratorium to protect residential and commercial tenants during a time of widespread economic hardship. The moratorium went into effect on March 4, 2020 and did not expire until February 1, 2023, long after the majority of California cities’ moratoriums had …
Read Article from Los Angeles Eviction Moratorium Lifted: What Landlords Need to Know
It’s called the “Mansion Tax,” but commercial investors will feel it the most, according to attorney Lee Kaplan of Harvest LLP. The future of new real estate transfer taxes scheduled to take effect in April 2023—which have been worrying investors and other owners of valuable property in the City of Los Angeles—has been called into …
Read Article from The Future of Transfer Taxes Approved by LA Voters in Question
Most clients are familiar with the old adage “time kills all deals”. Given current market conditions and the fact that a number of pundits believe that we are potentially entering into an economic slowdown, it is increasingly critical to complete real estate transactions – and commercial leases and purchase/sale agreements in particular – in a timely …