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Meet the Money® 2014

ADA defense and compliance

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This is Jim Butler, author of www.HotelLawBlog.com and hotel lawyer. Please contact me at Jim Butler at jbutler@jmbm.com or 310.201.3526.

Published on:

18 May 2021
See how JMBM’s Global Hospitality Group® can help you.
Click here for the latest articles on C-PACE Financing.

Over the past five years, Commercial PACE (or C-PACE) financing has gained wider acceptance and moved from a novel technique to a mainstream practical solution for financing. For more background on what C-PACE financing is, why it can be attractive, why it is becoming more popular and how JMBM’s attorneys can help, see C-PACE Financing – Now an accepted tool for hotel lenders and borrowers.

Now that New York City has released guidelines for C-PACE financing, there are even more opportunities to make the most of this strategy–see our post on the upcoming rules here.

The GHG team recently closed a $5.8 million Commercial PACE (C-PACE) loan for the 103-room Fairfield by Marriott Inn & Suites in Camarillo, CA, which includes a fitness center with outdoor pool and meeting space.

fairfield-marriott

photo: marriott.com

Hotel: Fairfield by Marriott Inn & Suites Camarillo
Location: Camarillo, CA
Size of C-PACE Loan: $5.8 million

 

How we can help with Commercial PACE (C-PACE) financing

C-PACE lending has become an important and fast-growing sub-specialty in our hotel finance capabilities. We work with C-PACE providers/lenders and borrowers. In fact, we have been fortunate enough to work with one of the leading providers of C-PACE financing as they expand their national platform.

We welcome inquires to see if we can help you evaluate potential PACE financing opportunities.

Webinar and more on C-PACE financing

To learn more about C-PACE, check out our free on demand webinar, “Why so many are looking at Commercial PACE (C-PACE) financing now.

You can also find more information on this topic on the Hotel Law Blog under the topic C-PACE Financing. Here are a few select articles and some representative transactions we have handled.

Is C-PACE the “new EB-5″ financing?

Retroactive C-PACE frees hotel investment capital

C-PACE Financing – Now an accepted tool for hotel lenders and borrowers

Should you be looking at Commercial PACE (C-PACE) financing now?

C-PACE Financing Lawyer: New York opening Commercial PACE – a big opportunity!

Some of our deals: C-PACE Financing on a roll!


Profile-David-Sudeck

David Sudeck is a senior member of JMBM’s Global Hospitality Group® and JMBM’s real estate department. His practice primarily involves the complex issues associated with hotels, resorts, vacation ownership properties (including shared ownership, destination clubs, timeshares, fractionals and private residence clubs), restaurants (including chef consulting agreements), golf courses and spas.

A seasoned real estate attorney, David has extensive legal experience involving all types of residential and commercial properties. He represents owners – including hospitality clients – in the purchase and sale, development, construction, financing, leasing, and sale-leaseback of properties, and advises them on their operations and management agreements, including hotel management agreements. Contact David Sudeck at 310.201.3518 or dsudeck@jmbm.com.


Picture of Jim ButlerThis is Jim Butler, author of www.HotelLawBlog.com 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 helped clients around the world with more than 4,300 hospitality properties worth more than $104.7 billion. Contact me at +1-310-201-3526 or jbutler@jmbm.com to discuss how we can help.


How can we help? Brochure Credentials Photo Gallery

Published on:

13 May 2021

See how JMBM’s Global Hospitality Group® can help you.
Click here for the latest articles on C-PACE Financing.

Why so many are looking at Commercial PACE
(C-PACE) financing now

Is C-PACE financing for you?

Commercial PACE financings have topped $1.5 billion and are still growing. Should you be considering it for your hotel or other commercial real estate? Join us for a condensed, 30-minute program to help you evaluate whether this financing program is right for your property, how it can be used, and what to expect in the next few years.

This free webinar took place on Tuesday, June 22, 2021 at 10:30 AM PDT / 1:30 PM EDT. To access an on demand recording, click here.

Led by JMBM’s PACE team leader and an executive at one of the leading national C-PACE providers, our webinar explores:

  • Advantages and challenges of C-PACE financing
  • Current national trends and developing opportunities
  • How C-PACE financing could provide liquidity and funding for commercial real estate, particularly for hotels, restaurants and resorts
  • Where and how you can use C-PACE financing, including: qualifying properties and expenditures; retroactive loans; new construction; and renovations of existing properties
  • Which 36 states have approved C-PACE, where it’s most active, and where we see it going next
  • Recent regulatory developments that will open up New York for C-PACE

CONTINUE READING →

Published on:

4 May 2021
See how JMBM’s Global Hospitality Group® can help you.
Click here for the latest articles on C-PACE Financing.

Over the past five years, Commercial PACE (or C-PACE) financing has gained wider acceptance, and moved from a novel technique to a mainstream practical solution for financing. For more background on what C-PACE financing is, why it can be attractive, why it is becoming more popular and how JMBM’s attorneys can help, see C-PACE Financing – Now an accepted tool for hotel lenders and borrowers.

Now that New York City has released guidelines for C-PACE financing, there are even more opportunities to make the most of this strategy–see our post on the upcoming rules here.

David Sudeck and his team at the Global Hospitality Group® at Jeffer, Mangels, Butler & Mitchell LLP handled a $42 million Commercial PACE loan for the 315-room citizenM hotel in Downtown Los Angeles. The property includes a restaurant, meeting space, and a 24-hour fitness center.

citizenM

photo: citizenm.com

Hotel: citizenM Los Angeles Downtown
Location: Downtown Los Angeles, CA
Size of C-PACE Loan: $42 million

CONTINUE READING →

Published on:

30 April 2021

See how JMBM’s Global Hospitality Group® can help you.
Click here for the latest articles on C-PACE Financing, as well as other Hotel Finance strategies.

Commercial PACE (C-PACE) financing guidelines are finally available for New York City, and while the program has not officially launched yet, hotel owners and developers in the area should start planning how to use these loans to retrofit their properties. My Partner David Sudeck discusses the program requirements, below.

 

New York City Releases Commercial PACE Program Guidelines :
A Big Step Toward Opening a Big Market for C-PACE Financing

by
David A. Sudeck, Partner & Senior Member of
JMBM’s Global Hospitality Group®

The NYC Commercial PACE Financing Program has finally released its program guidelines! Prospective qualified C-PACE lenders are now carefully reviewing the guidelines, applying for approval to be a C-PACE lender in New York City, and seeking projects that may benefit from C-PACE financing. It is time to get ready, but the official launch date for the program is being delayed a bit and has not yet been set. We expect the launch soon.

New York’s Law Will Motivate Building Owners to Reduce Greenhouse Gas Emissions

While C-PACE financing has been available throughout the country for years, the C-PACE program for New York State was enacted in 2019 as part of the Climate Mobilization Act. As part of that law, Local Law 97 (which has been subsequently amended by Local Law 147 and Local Law 95), established greenhouse gas emission limitations for certain large buildings in New York City. Buildings covered by the law will be required to report greenhouse gas emissions commencing in 2024, and penalties will be assessed for exceeding the established limitations. The legislature enacted the law with the expectation that it will be more expensive to pay the penalties than to renovate the building to reduce emissions.

New York’s C-PACE Program Will Provide the Financing to Retrofit Buildings

The State’s Commercial PACE Program was then concurrently implemented to provide building owners with a low-interest (usually around 6+/-%), long-term (usually 20-30 year amortization) financing option to support the required energy efficiency retrofits and to support renewable energy projects generally. It is also a form of financing that will result in significant mortgage tax savings (there is not mortgage recorded with C-PACE Financing) and other benefits. CONTINUE READING →

Published on:

28 April 2021

See how JMBM’s Global Hospitality Group® can help you.
Click here for the latest articles on Hotel Franchise & License Agreements.

After a year of economic upheaval in the hospitality industry, hotels are making big changes as they look ahead to recovery. Oftentimes these changes involve a complete rebrand, and this leads to questions about what is negotiable in a franchise agreement. In the article below, Bob Braun, senior member of JMBM’s Global Hospitality Group® and Co-Chair of the Firm’s Cybersecurity & Privacy Group, talks about 5 important franchise terms that can usually be negotiated.

Hotel Franchise Lawyer: 5 Things to Negotiate
in your next Franchise Agreement

by Bob Braun

To say that the past year has been a shock to the hospitality industry is a gross understatement. While many believe that a recovery is in sight – even if requires high-powered binoculars to see – most properties are being forced to re-evaluate their status and prospects. Many hotel owners – and brands – are re-evaluating whether a current brand is the right brand. While many hotels did well simply because of the surging economy during the long post-recession boom, the new normal, whatever it may be, requires that hotel owners, operators and brands rethink whether what was right in 2019 is right in 2021 (and will be right for the next ten years).

As a result, many hotels are changing their brands and management. This may be the impact of lenders foreclosing on properties, changes in ownership, and increasingly, the mutual agreement of a brand and a hotel owner that the brand may not be the optimal operator, or the brand may not be the optimal brand for the property.

During this time of change, it’s important to reacquaint ourselves with some of the basics of hotel franchising.

What’s really negotiable in a franchise agreement?

The most common question we hear from clients is, “What’s really negotiable in a franchise agreement?” While brands take the position franchise agreements are not negotiable, our experience with hundreds of hotel franchise agreements is that there knows that there is wiggle room to get some important concessions if you know what to go for and don’t waste your effort where it won’t do any good. CONTINUE READING →

Published on:

27 April 2021

See how JMBM’s Global Hospitality Group® can help you.
Click here for the latest on labor and employment guidance.

As coronavirus cases drop and economic activity starts to return to normal, the hospitality industry will soon be able to begin replacing workers who were laid off due to the pandemic. Some cities in California, and now the entire state, have enacted requirements for how hotels and other businesses can fill open positions; my partner, Travis Gemoets, has summarized the new law below.

California hospitality workers laid off during COVID-19 pandemic get rehire rights

by
Travis M. Gemoets, Partner & Senior Member of
JMBM’s Global Hospitality Group®

On Friday, April 16, 2021, Gov. Gavin Newsom put new employer obligations into law by signing Senate Bill 93, requiring hotel, event center, airport hospitality and janitorial employers to first rehire workers laid off during the pandemic when jobs become available, essentially establishing “recall rights” more commonly associated with union collective bargaining agreements. Senate Bill 93 takes effect immediately after quickly making its way through the Legislature as a budget trailer bill and will be in effect until the end of 2024. Gov. Newsom vetoed a more expansive labor-backed bill last year.

CONTINUE READING →

Published on:

23 April 2021
See how JMBM’s Global Hospitality Group® can help you.
Click here for the latest articles on C-PACE Financing.

Hotel finance lawyer: Commercial PACE (C-PACE) Financing is now mainstream

Over the past five years, Commerical PACE (C-PACE) financing has gained wider acceptance, and moved from a novel technique to a mainstream practical solution for financing. For more background on what C-PACE financing is, why it can be attractive, why it is becoming more popular and how JMBM’s attorneys can help, see C-PACE Financing – Now an accepted tool for hotel lenders and borrowers.

Our lawyers are at the leading edge of this important new trend. And we think that sharing some of our client’s successes with C-PACE financing may help others evaluate this tool for their own needs. So this is one in a series of successful C-PACE financing closings.

David Sudeck of the Global Hospitality Group® at Jeffer, Mangels, Butler & Mitchell LLP recently worked with a C-PACE financing source to close a retroactive $6 million PACE loan for the 105-room Kimpton La Peer Hotel in West Hollywood, CA. The property includes a full-service restaurant, pool and rooftop deck.

la-peer-lobby-150x150

photo: lapeerhotel.com

Hotel: Kimpton La Peer
Location: West Hollywood, CA
Size of C-PACE Loan: $6 million

CONTINUE READING →

Published on:

20 April 2021

See how JMBM’s Global Hospitality Group® can help you.
Click here for the latest articles on Buying and Selling a Hotel.

The latest M&A deal closing is not a hotel deal, but JMBM is pleased to announce that Advanced Veterinary Specialists (AVS), a Level II Veterinary Emergency and Critical Care Facility located in Santa Barbara, has been acquired by SAGE Veterinary Centers, a West Coast leader in specialty and emergency vet services. JMBM partner Jeffrey Groendal was the lead lawyer for the seller.

Hospitality is one of JMBM’s core practice areas. But JMBM is a full-service firm with multiple specialties to serve business owners. Another core practice area in addition to hotels is JMBM’s Mergers & Acquisitions Group. The Group handles all kinds of business acquisitions, whether by property, portfolio or M&A deals, including hotels. The Group’s lawyers provide start-to-finish assistance with all aspects of structuring, negotiating, financing, documenting and closing the deal.

Take a look at some recent deals closed in 2021:

JMBM Represents Advanced Veterinary Specialists in Acquisition by SAGE Veterinary Centers

JMBM Represents Borrmann Metal Center in Acquisition by Contractors Steel

JMBM Represents CURLS Beauty Brands in Forming Strategic Partnership with Beauty by Imagination

JMBM Represents BQE Software in Growth Investment from Serent Capital

If you are interested in learning more about our M&A practice, visit www.jmbm.com/mergers-acquisitions or contact Michael N. Steuch at 310.712.6817 or MSteuch@jmbm.com. CONTINUE READING →

Published on:

08 April 2021

See how JMBM’s Global Hospitality Group® can help you.
Click here for the latest articles on Outlook and Trends.

The Treasury Department’s Financial Crimes Enforcement Network (FinCEN) is currently accepting public comments on a provision in the recently enacted Corporate Transparency Act (CTA) which requires some privately-held business entities to disclose ownership information directly to a law enforcement agency. Interested parties should consider commenting before the May 5th deadline, and companies who may be impacted should take this opportunity to review their anti-money laundering compliance programs. Vince Farhat and Samuel Buchman of JMBM’s White Collar Defense and Investigations Group have written an article detailing this legislation below.

FinCEN Seeks Comments on Ownership Disclosure Requirements in New Federal Anti-Money Laundering Law

by
Vince Farhat, Chair and Samuel Buchman, Associate
JMBM’s White Collar Defense & Investigations Group

On April 1, 2021, the Treasury Department’s Financial Crimes Enforcement Network (“FinCEN”) published an advance notice of proposed rulemaking giving companies and individuals the chance to comment on the new beneficial ownership disclosure requirements contained in the recently-enacted Corporate Transparency Act (“CTA”), which is part of the Anti-Money Laundering Act of 2020 (“AMLA”) included in the National Defense Authorization Act (“NDAA”). Under the CTA, some privately-held business entities will be required, for the first time, to disclose ownership information directly to a law enforcement agency. FinCEN is accepting public comments on the CTA disclosure requirements through May 5, 2021, and companies and other interested parties should consider commenting by this deadline to help shape the anticipated rulemaking process at this early stage. This article focuses on two specific legislative changes which could lead to an uptick in federal anti-money laundering enforcement: (1) the CTA beneficial ownership disclosure requirements; and (2) enhanced whistleblower incentives and protections under the AMLA. It is critical for companies to stay abreast of regulatory developments in order to maintain proper compliance with these changing enforcement rules.

Background

Congress enacted the NDAA on January 1, 2021. This year’s iteration of the NDAA gained notoriety when former President Trump vetoed the bill, taking issue with the bill’s failure to repeal Section 230 of the Communications Decency Act. However, following a veto override, the NDAA became law, marking the 59th consecutive year in which some form of the NDAA has been passed. This Section 230 scuffle diverted attention away from the AMLA, a separately named Act within the NDAA. The AMLA represents the most significant reform to anti-money laundering laws in two decades since the 2001 USA PATRIOT Act.

Among the AMLA’s sweeping reforms are efforts to strengthen FinCEN, extend the reach of the Bank Secrecy Act (“BSA”), and expand the Department of Justice and Treasury Department’s ability to subpoena foreign financial institutions.

In its advance notice of proposed rulemaking (“ANPR”), FinCEN requested comments on the new CTA beneficial ownership disclosure requirements. The comment period will last until May 5. The ANPR solicits comments on a variety of topics, including: definitions of the various ambiguous terms in the law; the disclosure procedure; determining the scope and content of the disclosures; the means by which entities will seek an exemption from the reporting requirements; and how the disclosures will be shared with state and local law enforcement and financial institutions. CONTINUE READING →

Published on:

5 April 2021

See how JMBM’s Global Hospitality Group® can help you.
Click here for the latest articles on Buying and Selling a Hotel and here for the latest articles on Hotel Franchise & License Agreements.

Bob Braun recently wrote an article for Today’s Hotelier on the issues hotel owners should watch for when selling a property with a franchise agreement. He explores when sellers should start speaking to their franchisor during the sale process, what purchasers can expect when negotiating a new franchise agreement, how guarantees should be handled in a sale or transfer, and several other concerns that may arise when a branded hotel is sold.

On negotiating a franchise agreement, Bob notes:

“Franchise agreements are intentionally designed to be highly favorable to the brand, and brands are unwilling to make changes. That position is even more pronounced in a change of ownership…A purchaser should be aware that, absent special circumstances, brands rarely provide an area of protection to avoid competition, a ramp-up of fees, or other variations from their forms.”

Click here to read the full article. CONTINUE READING →

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