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CMBS Special Servicing Roundtable for distressed hotel and retail projects

13 July 2020

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Click to see our category-killer experience with hotels. See also our distressed loan credentials. And click here for the latest blog articles on loan modifications, workouts, bankruptcies and receiverships, and here for The Lenders Handbook for Troubled Hotels.

Meet the Money® Online: CMBS Special Servicing FAQs

It’s estimated that 20 percent of hotels in the U.S. have debt held in commercial mortgage-backed securities (CMBS). Among these hospitality industry borrowers are hotel owners needing financial relief due to the COVID-19 pandemic, many of whom are unfamiliar with working with master servicers and special servicers in the complex world of CMBS.

Unfortunately, there is much misinformation circulating in the business media about how special servicers work with borrowers needing debt relief.

On July 8, 2020, we addressed the myths and realities of working with CNBS special servicers in our Meet the Money® Online virtual roundtable, “CMBS Special Servicing FAQs.” The panel, moderated by JMBM’s Global Hospitality Group® Chair Jim Butler, featured CMBS experts including:

  • Andrew Hundertmark, CEO, Argentic Services Company
  • Curt Spaugh, Director, SitusAMC, Special Servicing Division
  • Lindsey Wright, Senior Managing Director, Greystone Special Servicing
  • Thomas J. Biafore, Partner, Kilpatrick Townsend
  • Robert B. Kaplan, Partner, Jeffer Mangels Butler & Mitchell

Frequently Asked Questions about CMBS Special Servicing for distressed hotel and retail projects

Roundtable Topics discussed include:

  • Why things that are easy to work through with a lender, are not so easy with special servicers.
  • Is 90 days of forbearance enough? What if you need a longer, more complex workout?
  • What if you want to turn in the keys and walk away?
  • The importance of tax considerations.
  • Urban myths about PPE and “loan to own” tactics.
  • Avoiding pitfalls that rack up borrowers’ costs.
  • Why borrowers need to understand controlling documents.
  • Why communication is key.
  • Can a hotel be considered a “single asset real estate” (SARE) for streamlined bankruptcy purposes?

How to access the CMBS special servicing roundtable — recording and highlights

The full one-hour program recording of our July 8th CMBS FAQs Special Servicing Roundtable is now available by clicking CMBS Special Servicing FAQs.

The roundtable presentation was also featured in a Hotel News Now article which provides a nice summary of a few highlights of the program.

Troubled hotel and retail – forbearances, loan modifications, recapitalizations, receiverships, workouts, turnarounds, restructurings, and bankruptcies.

Our distressed assets team. We’ve been recognized internationally for the business and legal advice we provide to creditors dealing with distressed hotel, retail, retail chain and complex real estate assets. See our distressed loan credentials for more information.

Who we help. We assist banks, special servicers, and other financial institutions with all aspects of distressed projects, including forbearances, loan modifications, recapitalizations, receiverships, workouts, turnarounds, restructurings, and bankruptcies.

Wide-ranging experience. The size of the troubled loans we have worked on ranges from a few million dollars to billion-dollar properties and portfolios; as of April 21, 2020, we have been engaged on new distressed hotel and retail loans for two major lender/special servicers in excess of $1.2 billion.

For information, contact one of the senior members of the team, below.

Jim Butler

Robert B. Kaplan

Other articles and resources on distressed assets

From our Global Hospitality Group® library of free resources, here are a few updated and classic articles on workouts and bankruptcies:

Can a hotel ever be “single asset real estate” for bankruptcy purposes? What is “SARE” and who cares?

Can SPEs be truly bankruptcy remote entities for hotel and resort loans?

Workouts and Special Servicing for Hotel Mortgage Loans: What is so different about TROUBLED HOTEL LOANS?

Do you know the 8 Dos and Don’ts of handling troubled hotel mortgage loans?

The “Comprehensive Situation Analysis” for troubled hotel mortgage loans and workouts

Lender and borrower alternatives for troubled hotel mortgage loans

Butler’s Matrix: Key to hotel mortgage loan defaults, workouts, bankruptcies and receiverships.

Hotel bankruptcy? Distressed hotel loan mortgage? Restructuring hotel debt? Troubled hotel asset? How about an Enhanced Note Sale™?

This is Jim Butler, author of and hotel lawyer, signing off. We’ve done more than $87 billion of hotel transactions. Who’s your hotel lawyer?

Picture of Jim ButlerThis is Jim Butler, author of and founding partner of JMBM and JMBM’s Global Hospitality Group®. We provide business and legal advice to hotel owners, developers, independent operators and investors. This advice covers critical hotel issues such as hotel purchase, sale, development, financing, franchise, management, ADA, and IP matters. We also have compelling experience in hotel litigation, union avoidance and union negotiations, and cybersecurity & data privacy.

JMBM’s Global Hospitality Group® has been involved in more than $125 billion of hotel transactions and more than 4,700 hotel properties located around the globe. Contact me at +1-310-201-3526 or to discuss how we can help.

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