Real Estate in a Pandemic: Insights on Dealing with Distress and Loan Restructuring
The COVID-19 pandemic has had a significant negative impact on almost all sectors of the real estate industry. Tenant businesses have struggled to pay rent and many retailers and restaurants are permanently closing stores. While retail and hospitality have been the hardest hit, new workplace strategies may reduce office demand, and even the typically safe multifamily market is beginning to show signs of stress from continued historically high unemployment. All this translates into reduced property cash flow and uncertain valuations. Real estate executives are having to quickly revamp business strategies and operations, and assess their current capacity to fund existing financings.
EisnerAmper’s Real Estate Services Group has created this compendium of articles to provide executives with critical information as they consider how to best work through this period of financial distress with their lenders. The articles cover a broad spectrum of important topics, including:
- Timing your first (or second) loan modification before the sunset of accommodative regulatory guidance
- Preparing the right information and analysis for bank negotiations
- Understanding the steps required to restructure a loan
- Thinking about strategies in hospitality
- Being aware of the many accounting and tax implications of any potential restructure
- Recognizing real estate vulnerability to fraud
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