Adam Friedman Quoted in CoStar News on How First Republic Takeover Raises Questions Over Future of Its Real Estate Portfolio
Adam Friedman, Partner and Chair of the firm’s Bankruptcy & Financial Restructuring and Loan Restructuring and Distressed Real Estate Practices, was quoted in an article published in CoStar News. The article covers First Republic Bank being taken over by JPMorgan Chase, specifically focusing on its retail portfolio. Questions arise concerning what JPMorgan will do with the additional 1.3 million square feet of commercial space across 85 locations in eight states, considering the large presence the banking giant already has in regions where First Republic branches are located. This is especially relevant in San Francisco, New York, Los Angeles, and Boca Raton locations. Adam provides insight into what JPMorgan could do with this acquisition and these locations. “One benefit of distressed acquisitions," he explains, "is the ability of the buyer to pick and choose amongst the desirable assets, including real estate locations, and to leave past liabilities with the seller.” Under the takeover agreement, JPMorgan Chase is said to have acquired $173 billion of loans and approximately $30 billion of securities. Additionally, it assumes $92 billion of deposits, including $30 billion of large bank deposits.