Today on “Terra Firma: Conversations on Commercial Real Estate,” Stacey Tyler invites PACE Loan Group COO Bali Kumar to discuss a specialized loan product known as Property Assessed Clean Energy, or PACE financing, a program available in about 40 states where property owners take a voluntary special assessment on their property taxes in order to finance clean energy or capital expenditures projects. Often used for multifamily, hospitality, and senior living projects, property owners can avoid incurring double digit interest in debt financing by using as much PACE as possible to blend down the cost of capital. Stacey and Bali also delve into qualifications, conditions, and state-by-state laws regarding PACE, as well as its specific challenges in New York City.

Speakers:

Stacey C. Tyler, Counsel, Real Estate; Deputy Chair, Cannabis PracticeBali Kumar, COO, PACE Loan Group

Today on “Terra Firma: Conversations on Commercial Real Estate,” hosts Stacey Tyler and Stephen Tanico talk with tax attorneys and Lowenstein colleagues Sophia Mokotoff and Matthew F. Cammarata about important tax issues to keep in mind in the real estate world, such as long-term capital gains versus ordinary income, and holding property for investment versus holding property as part of your active trade or business. They also address how items such as transfer tax differ amongst states, the benefits of setting up an LLC or a pass-through entity, depreciation, and deductions; and they provide strategies for how real estate investors and developers can be more proactive from a tax perspective. 

Speakers:

Sophia Mokotoff, Partner, TaxMatthew F. Cammarata, Counsel, TaxStacey C. Tyler, Counsel, Real Estate; Deputy Chair, Cannabis PracticeStephen Tanico, Counsel, Real Estate

Today on “Terra Firma: Conversations on Commercial Real Estate,” Stacey Tyler and Stephen Tanico speak with Harold Bordwin, principal and co-president of Keen-Summit Capital Partners, about recent depressed values in the real estate market, and the inverse relationship between cap rates and value. They discuss how property owners and lenders are dealing with the new landscape,  whether converting office space to residential is viable in a post-Covid world, changing criteria for real property loans, and the lingering impact of the Silicon Valley Bank failure.

Speakers:

Stacey C. Tyler, Counsel, Real Estate; Deputy Chair, Cannabis PracticeStephen Tanico, Counsel, Real EstateHarold Bordwin, Principal and Co-President, Keen-Summit Capital Partners LLC

This episode of “Terra Firma: Conversations on Commercial Real Estate” features hosts Stacey C. Tyler and Stephen Tanico talking with Eric Chafetz, partner in Lowenstein’s Bankruptcy and Restructuring Group, about office market bankruptcies, and what to do when a building is going into foreclosure. Eric explains that, because creditors are required to stop a foreclosure proceeding when a single asset real estate company files for bankruptcy, they are seeking the benefit of an automatic stay and the related breathing room to try to work out their affairs and maximize value—often through recapitalization or a sale. The discussion covers such topics as the section 363 sale process, including where a nontraditional finance source purchases the debt at a discounted price; the benefits of a foreclosure sale; and the implications of a receivership.  The lawyers also address the speed of bankruptcy proceedings, the importance of venue, and the growing role of hedge funds at the intersection of real estate and bankruptcy.

Speakers:

Eric Chafetz, Partner, Bankruptcy & Restructuring DepartmentStacey C. Tyler, Counsel, Real Estate; Deputy Chair, Cannabis PracticeStephen Tanico, Counsel, Real Estate

Today on “Terra Firma: Conversations on Commercial Real Estate,” hosts Stacey C. Tyler and Stephen Tanico chat with Naheem Harris, investor and real estate lawyer, about what he is seeing in the current real estate market, particularly through the lens of finance. Harris describes what he sees as a movement away from typical mortgage lending towards more creative sources of funding, such as preferred equity, mezzanine and SPAC lending. Harris also discusses his own entrepreneurship and how his investing experience in the restaurant industry informs how he counsels clients.

Speakers:

Stacey C. Tyler, Counsel, Real Estate; Deputy Chair, Cannabis PracticeStephen Tanico, Counsel, Real EstateNaheem J. Harris, Partner, Real Estate, Akerman

In this episode of Terra Firma, Conversations on Commercial Real Estate, Stacey Tyler and Stephen Tanico are joined by Lowenstein Real Estate partner Kimberly E. Lomot for a discussion on financing term sheets. They review key components of loan commitment letters relevant to mortgage deals, construction loans, and alternative financing structures, and give tips on how to maximize the negotiation of the initial terms to save time and money during the loan documentation process. Lomot gives an overview of a range of issues including lender selection, collateral terms, and environmental provisions.

Speakers:

Kimberly E. Lomot, Partner, Real EstateStacey C. Tyler, Counsel, Real Estate; Deputy Chair, Cannabis PracticeStephen Tanico, Counsel, Real Estate

On this episode of “Terra Firma: Conversations on Commercial Real Estate,” Stacey C. Tyler and Stephen Tanico continue their term sheet series, this time focusing on lease deals and the value of attorney review prior to signing a term sheet in order to save time, money, and—potentially—risk. The lawyers describe where they often find term sheets lacking, such as with terms of guarantee, renewals, and the right to terminate early; they emphasize the importance of long-term planning for the future, as properties age and require expensive maintenance and repair; and they reiterate the importance of having both a brokerage and a legal team well acquainted with your particular asset class and location.

Speakers:

Stacey C. Tyler, Counsel, Real Estate; Deputy Chair, Cannabis Practice Stephen Tanico, Counsel, Real Estate

Today the hosts of “Terra Firma: Conversations on Commercial Real Estate,” discuss how the proposed reclassification (or “rescheduling”) of cannabis may impact cannabis businesses and their real estate holdings, especially with respect to financing and leasing.

Real estate attorneys Stacey Tyler (who also serves as deputy chair of Lowenstein’s Cannabis Practice) and Stephen Tanico discuss how the current classification of cannabis as a Schedule I drug under the Controlled Substances Act has led to a patchwork of laws across the country governing cannabis, and how the recent proposal to reclassify it down to Schedule III may impact different facets of the real estate world including the bargaining power of tenants in lease negotiations, licensing procedures, insurance, and the availability of mainstream financing sources.

Speakers:

Stacey C. Tyler, Counsel, Real Estate; Deputy Chair, Cannabis Practice Stephen Tanico, Counsel, Real Estate

In this episode of “Terra Firma: Conversations on Commercial Real Estate,” hosts Stacey C. Tyler and Stephen Tanico discuss the evolution of New York City retail leasing with their guest Julia E. Sanabria, partner in the firm’s Real Estate practice. They delve into how the retail market has changed post-COVID, focusing on the rise of experiential retail and the resilience of the restaurant industry. The conversation also explores the negotiation dynamics between landlords and tenants, emphasizing the importance of understanding market-specific provisions, especially for first-time tenants entering the New York City market.

Speakers:

Julia E. Sanabria, Partner, Real Estate Stacey C. Tyler, Counsel, Real Estate; Deputy Chair, Cannabis Practice Stephen Tanico, Counsel, Real Estate

Today on Terra Firma: Conversations on Commercial Real Estate, hosts Stacey Tyler and Stephen Tanico are joined by Lowenstein Trusts & Estates partner and fellow podcaster Warren Racusin to discuss real estate in the context of estate planning. While there are a number of important considerations in this area, this episode focuses primarily on estate taxes and governance. The lawyers discuss some of the ways to reduce one’s estate tax burden, including gifting of real estate assets, establishing trusts, and the use of life insurance as a source of liquidity, as well as governance concerns associated with real property ownership and management over the long term. 

Speakers:

Warren K. Racusin, Partner and Chair, Trusts & EstatesStacey C. Tyler, Counsel, Real Estate; Deputy Chair, Cannabis PracticeStephen Tanico, Counsel, Real Estate