400-Unit New York City Condominium

• Client: Real estate lender
• Date: Oct 28, 2009
• Location: New York City

Summary:

Schiff Hardin attorneys represented a lender and its participants in connection with a 400-unit condominium project in New York City with a borrower holding approximately 100 unsold units at maturity.

Initially the transaction involved a standstill agreement pending the borrower's efforts to lease up units and/or locate a bulk purchaser, and then became a negotiated friendly foreclosure rather than a deed-in-lieu of foreclosure due to the existence of subordinated claims, with the guarantors providing a deficiency note.

The lender then, through a sealed bid procedure, agreed with a third party (if the lender was the successful bidder at the foreclosure sale) to assign the successful foreclosure bid to that third party. This process saved the parties the prospect of paying double transfer taxes.