Adam Friedman Quoted in Connect CRE on Distressed Lending and Investing Opportunities in Commercial Real Estate

Adam Friedman, Partner and Chair of the firm’s Bankruptcy & Financial Restructuring and Distressed Real Estate Practices, was quoted in an article published in Connect CRE on the heightened demand for non-bank lenders for increased commercial real estate activity amid market uncertainty. “I’ve never seen a better opportunity than exists right now for distressed lenders and distressed investors,” Adam explained. “There are these huge distress signals that are happening, so we are seeing a lot of non-bank lenders trying to find opportunities. They are looking at foreclosure cases, bankruptcy cases, and CMBS loans.” He added that, concerning revaluation and restructuring, he is trying to convince lenders to agree to fair valuation: “I have not seen what I’ll call capitulation or price discovery by the existing lenders. Most of my deals are on extensions right now.” One solution might be creative financing strategies, he concludes: “In the event that things turn around drastically, maybe the lender gets more value out of it.” To be able to do that, Adam said, the loan first needs to be right-sized, so the existing cash flow can service a suitable mortgage. He thinks the real question is how long it will take to cycle what he calls underwater assets and repurpose them so that new money and new investors can turn them around.