CMBS Experience

The Commercial Mortgage-Backed Securities (CMBS) industry involves distinct legal topics that require a different type of experience and knowledge from traditional bankruptcy, workout and restructuring issues in balance sheet loans. Baker Donelson's CMBS Servicer Team includes professionals with bankruptcy, real estate, litigation and tax experience allowing us to provide the depth of experience our servicer clients require. We represent CMBS servicers in bankruptcy, receivership, foreclosure, workout and restructuring matters across the country, with particular experience in multi-family, health care, hospitality, retail development and other income producing properties.

Representative Matters

• Represented special servicer for holder of $198 million loan secured by 15 multi-family properties in Texas, Nevada, Virginia, South Carolina, Florida and Maryland. Analyzed repurchase claims under Mortgage Loan Purchase Agreement; analyzed proposed restructure; and prosecuted federal receivership action on all properties.
• Represented special servicer for holder of $89 million loan secured by retail centers in Alabama, Tennessee, Mississippi, Kentucky, Florida and Louisiana. Analyzed non-monetary defaults and restructured proposal; prosecuted federal receivership action on all properties; and following borrower bankruptcy in Nashville, opposed cram down of secured debt and negotiate consensual plan of reorganization.
• Represented special servicer for holder of $132 million loan secured by six multi-family properties in Alabama, and secured appointment of receiver in contested hearing and negotiated settlement of various claims between holder and servicer.
• Negotiated loan modification and extension on behalf of special servicer for holder of $50 million loan secured by hotel in Rhode Island.
• Worked on default, receivership and restructuring of loan documents on behalf of special servicer for holder of $49 million loan secured by hotel in Florida.
• Secured cash management agreement and worked on receivership and restructure of loan documents on behalf of special servicer for holder of $73 million loan secured by retail center in Mobile, Alabama.
• Handled receivership and foreclosure of hotel properties in Sheffield, Alabama, and Macon, Georgia, for special servicer, including negotiations with city land owner regarding disputed leasehold mortgage provisions and settlement of multiple lien claims on personal and real property of hotel facilities as collateral for $48 million loan.
• Negotiated and closed deed in lieu of foreclosure transaction on hotel property in Montgomery, Alabama, for special servicer and closed subsequent sale of REO property.
• Represented special servicer for holder on $13 million loan secured by three Georgia apartment complexes in borrower's bankruptcy case pending in Tennessee. Numerous examinations to uncover potential fraud; negotiated appointment of replacement management based on significant pre-petition and post-petition fraud; prepared discharge complaint against guarantor in related guarantor bankruptcy; analyzed and litigated yield maintenance and prepayment penalty premiums under loan documents; secured voluntary turnover of collateral and appointment of examiner to investigate and pursue causes of action.
• Negotiated restructure of securitized loan obligations to avoid Chapter 11 bankruptcy filing; analyzed condemnation issues, Medicare fraud issues and state licensing issues; and restructured loan documents for special servicer for holder on $70 million loan secured by 10 long term care facilities in Virginia.
• Represented special servicer in action against parent company guarantor of loan to SPE in failed multi-family loan in Memphis, Tennessee. Obtained judgment for full recourse deficiency liability against guarantor under limited recourse/carve-out guaranty.
• Represented special servicer on $36.5 million loan on 1,200 unit multi-family property held under PILOT lease in Memphis, Tennessee, where borrower was diverting funds and other assets. Successfully obtained immediate appointment of receiver to secure operations.
• Represented special servicer in workout of loan and foreclosure of vacant '"big box" retail furniture store sites in Montgomery, Alabama, and Fort Myers, Florida.
• Analyzed covenant defaults regarding insurance proceeds from fire; accelerated loan obligations; sought appointment of receiver for collection of rents; negotiated payment of all obligations through restructure of loan documents on behalf of special servicer for holder on three related loans totaling in excess of $9.2 million loan secured by numerous Tennessee apartment complexes.
• Negotiated cash collateral, replacement management and plan confirmation; litigated enforcement of yield maintenance premiums and other prepayment premiums; and secured repayment of prepayment premium and default interest for special servicer for holder of $9 million securitized loan, secured by Mississippi apartment complex in borrower's Chapter 11 bankruptcy case.
• Coordinated approvals through CDO structure for acceleration and secured recovery of default interest, late charges and exit fee upon payoff on behalf of special servicer for holder of $7 million CDO secured by multi-family housing project in Georgia.
• Represented special servicer for holder of $8 million loan secured by multi-family project in Alabama. Pursued recovery of default interest, late fees and exit fee upon maturity default; litigated late charge on full principal balance upon maturity.
• Accelerated loan obligations and secured immediate appointment of receiver to take control of property, and prosecuted recovery of $1 million insurance claim based on fire, on behalf of special servicer for holder of $3.5 million loan secured by multi-family housing project in Memphis, Tennessee.
• Represented special servicer for holder of $4.2 million securitized loan secured by multi-family apartment complex in Clarksville, Tennessee. Accelerated loan obligations and secured immediate appointment of receiver to take over collateral; investigated carve-out guaranty claims; demanded and took control of rent lockbox accounts; foreclosed on property.
• Litigated enforceability of late charge on full principal balance due at maturity, and negotiated forbearance and payout, including late charges, for special servicer for holder of $7.5 million securitized loan secured by Alabama multi-family housing complex.
• Analyzed guarantor carve-out liability and pursue recovery of same, and pursued recovery in guarantor's bankruptcy case in representation of special servicer for holder of $6.4 million loan secured by four multi-family properties in Florida.
• Pursued recovery of condemnation proceeds pledged under the loan documents; pursued recovery of default interest and late charges; and negotiated forbearance and recovery for special servicer on $7.2 million loan secured by multi-family property in Georgia.
• Represented special servicer for holder of $15 million securitized loan secured by six skilled nursing facilities in Arkansas. Analyzed borrower's transfer of assets to new entity; closed two facilities; restructured loan obligations in new borrower; negotiated restructure of loan transaction to maximize potential recovery to investors; and coordinated with REMIC counsel regarding restructure.
• Secured appointment of receiver and sale of assets, and litigated guarantor carve-out liability on behalf of servicer for holder of $15 million loan secured by three multi-family properties in Alabama.
• Secured appointment of receiver and sale of assets and litigated guarantor carve-out liability for servicer for holder of $23 million loan secured by a multi-family complex in Montgomery, Alabama.
• Secured TRO against borrower and the appointment of a receiver, and coordinated sale of property and pursuit of guarantor carve-out liability on behalf of servicer for holder of $5 million loan secured by a commercial property in Jackson, Tennessee.
• Represented special servicer for holder of $10 million loan secured by three long term care facilities in Oregon. Negotiated restructure and assumption by third party of outstanding loan obligations; and documented loan restructure to avoid Chapter 11 bankruptcy filing, including recovery of reimbursement from State and Federal agencies.
• Negotiated with State of Washington to expedite CON and licensing of new owner/operator to take over operations of distressed facility, and assisted in sale of one facility to third party on expedited basis and in foreclosure of second facility in representation of special servicer for holder of $2 million securitized loan secured by two nursing homes in Washington.
• Represented special servicer for holder of four loans totaling $13.7 million with related borrowers secured by numerous multi-family housing complexes in middle Tennessee. Analyzed covenant defaults; pursued carve-out guarantor liability; secured appointment of receiver; and coordinated and foreclosed interest in the property.
• Filed verified complaint for appointment of a receiver to take control of the operations with a request for a TRO prohibiting the borrower and their existing management company from using any cash; commenced foreclosure; and secured full payoff of loan within 60 days in representation of special servicer for holder of $5.2 million loan secured by a multi¬family housing complex in Memphis, Tennessee.
• Pursued appointment of receiver and negotiated reinstatement of loan upon cure of all monetary and non-monetary defaults for special servicer for holder of $2 million loan secured by multi-family housing complex in Jefferson County, Alabama.
• Represented special servicer for holder against carve-out guarantors based on violations of environmental indemnity and waste relating to foreclosed multi-family property in Memphis, Tennessee.
• Represented special servicer for holder in litigation against carve-out guarantor based on violation of loan covenants relating to unauthorized transfer of assets involving retail property in Baton Rouge, Louisiana.
• Represented special servicer in defaulted $8 million loan secured by retail shopping center in Jefferson County, Alabama, resulting in sale of loan and security documents.
• Represented special servicer in Chapter 11 bankruptcy case related to $2.8 million loan secured by hotel in Mobile, Alabama, filed on the eve of foreclosure. Bankruptcy Court pleadings and hearings regarding unauthorized use of cash collateral and termination of the automatic stay resulting in the sale of collateral and a full pay-off including yield maintenance/prepayment premiums and legal fees.
• Represented special servicer in $8.7 million loan secured by multi-family property in DeSoto County, Mississippi.