Adam Friedman Quoted in Commercial Observer on Office Properties With Healthy Fundamentals That Are Hitting Special Servicing

Adam Friedman, Partner and Chair of the firm’s Bankruptcy & Financial Restructuring and Distressed Real Estate Practices, was quoted in a Commercial Observer article (subscription required) on  distressed office building loans  that are in default and being sent to special servicing, even when the buildings in question have low vacancies and reliable rent collections. Adam explained that amid workouts and restructuring since COVID, some of these buildings have already been through one distress period and noted that  a lot of existing forbearance or extension agreements just “kick the can — extend and pretend” and never solve the fundamental problem of repaying unpaid default rate interest and rightsizing the overleveraged nature of the loan.