Keeping a Real Estate Deal Afloat Under Pressure

Pressure A client had assembled many real estate parcels in connection with the development of a large-scale mixed-use project involving residential, hotel and retail components. With limited time to resolve outstanding disputes that existed among the equity investors to the project, the client needed to secure equity financing for various project obligations - including a pressing legal judgment that threatened the viability of the project and the acquisition of several additional parcels to better complete the assemblage. We also had to negotiate the terms of a development joint venture with a third-party developer who had the experience and funds required to successfully complete the project. The situation was further complicated by the need to settle a lawsuit the client was embroiled in. Enthused by the challenge, we helped our client bring about a resolution to the investor disputes and negotiated to secure the financing necessary to meet the project’s short-term capital needs (to satisfy the judgment, take care of working capital requirements and acquire the additional parcels). We also established the parameters for the settlement of the lawsuit and successfully negotiated the terms of a development joint venture agreement all within the time period necessary to maintain the viability of the project.