CMBS Special Servicers

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The Commercial Mortgage-Backed Securities (CMBS) industry involves distinct legal issues 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 special servicers across the country in matters of:

  • Bankruptcy
  • Receivership
  • Foreclosure
  • Workouts
  • Restructuring

We have particular experience in multi-family, health care, hospitality, office, industry, retail development and other income producing properties. Our CMBS team is an active member of the Commercial Real Estate Finance Council, and provides regular industry updates to clients through client training sessions.

Representative Matters

Multiple Jurisdictions

  • 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 cramdown of secured debt and negotiate consensual plan of reorganization.
  • Represented special servicer on $42.8 million loan secured by hotel properties in Michigan, Maryland and North Carolina.  Worked on loan restructure, including addressing franchise issues.
  • Represented lender on $160 million loan secured by long term care facilities located in Germany, including the implementation of a Collateral Trust to liquidate 20 parcels of collateral located throughout the United States and Canada to pay deficiency.

Alabama

  • Represented servicer for holder of $132 million loan secured by six multi-family properties in Alabama.  Secured appointment of receiver in contested hearing and negotiated settlement of various claims between holder and servicer.
  • Represented special servicer for holder of $73 million loan secured by life style retail center in Mobile, Alabama.  Negotiated and implemented loan modification.
  • Represented special servicer on $23 million loan secured by office space located in Auburn, Alabama.  Pursued receivership and handled sale of property.

Arkansas

  • Represented special servicer for holder of $15 million loan secured by six skilled nursing facilities in Arkansas. Analyzed borrower's transfer of assets to new entity; handled closure of two facilities; restructured loan obligations in new borrower; and negotiated restructure of loan transaction to maximize potential recovery to investors.
  • Represented special servicer for holder of $38 million loan secured by office park in Bentonville, Arkansas. Pursued appointment of receiver and judicial foreclosure of property.
  • Represented special servicer for holder of $4.3 million loan secured by office property in Arkansas.  Secured appointment of receiver for the property and ultimate sale of same.

Florida

  • Represented special servicer on $49 million loan secured by hotel in Florida.  Worked on default, receivership and restructuring of loan documents.
  • Represented special servicer for holder of $6.4 million loan secured by four multi-family properties in Florida. Analyzed guarantor carve-out liability and pursued recovery of same, and pursued recovery in guarantor's bankruptcy case.
  • Represented special servicer on $35 million loan secured by a seniors housing campus located in Tampa, Florida.  Negotiated and implemented extension and loan modification.
  • Represented special servicer on $89.6 million loan secured by a seniors housing campus located in Palm Beach, Florida.  Negotiated and completed loan modification to facilitate sale of asset.

Georgia

  • Represented special servicer on $5.5 million loan secured by a hotel in Tifton, Georgia.  Secured appointment of receiver and coordinated sale of property.
  • Represented special servicer on $20 million loan secured by office complex in DeKalb County, Georgia.  Negotiated cure of monetary and covenant defaults. Monitored compliance with loan documents and pursued receivership and foreclosure upon subsequent default.
  • Represented special servicer on $18.4 million loan secured by multi-family property located in Gwinnett County, Georgia. Pursued receivership and foreclosure of property.  

Kentucky

  • Represented special servicer on $7.76 million loan secured by retail center located in Louisville, Kentucky, and worked on restructure of loan, including negotiations regarding lease terms and SNDA on anchor tenant
  • Represented special servicer for holder of $4.3 million loan secured by retail center in Bowling Green, Kentucky.  Negotiated and implemented restructure of loan.
  • Represented special servicer for holder of $2.4 million loan secured by retail property in Owensboro, Kentucky.  Secured appointment of receiver and foreclosed on property.

Louisiana

  • Represented special servicer for holder of $128 million loan secured by a life style retail center located in Bossier Parish, Louisiana.  Negotiated and documented restructure of loan into A-B Note structure.  Pursued and secured appointment of keeper when restructure negotiations broke down.  Prosecuted judicial foreclosure.
  • Represented special servicer on $12.7 million loan secured by multi-family property located in Houston, Texas in Chapter 11 bankruptcy case filed in New Orleans, Louisiana.  Secured order on sale of assets and loan restructure through assumption.
  • Represented special servicer for holder of $14 million loan secured by hotel in New Orleans, Louisiana.  Pursued recovery of transferred rents.  Negotiated and documented restructure of loan.
  • Represented special servicer for holder of $13.1 million loan secured by hotel in New Orleans, Louisiana.  Pursued appointment of keeper.  Negotiated with franchisor regarding retention of flag.

Mississippi

  • 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.
  • Represented special servicer on $18 million loan secured by a multi-family property located in Biloxi, Mississippi.  Negotiated and implemented loan modification.
  • Represented special servicer for holder of $13.4 million loan secured by multi-family property located in Gulfport, Mississippi involving TIC ownership.  Negotiated and implemented restructure of loan obligations.

North Carolina

  • Represented special servicer on $4 million loan secured by multi-family property located in South Carolina in a Chapter 11 bankruptcy filed in Charlotte, North Carolina.  Secured prohibition on use of cash collateral and transfer of Chapter 11 to South Carolina and subsequent dismissal of bankruptcy as bad faith filing.  Secured appointment of state court receiver.
  • Represented lender on $7.8 million loan secured by multi-family property located in Cary, North Carolina.  Litigated cash collateral, contested plan confirmation and lender liability issues in Delaware bankruptcy court.  Prevailed on all issues and secured turnover of property and relief from stay.
  • Represented special servicer on $1.5 million loan secured by retail property in Forrest City, North Carolina.  Pursued appointment of receiver and restructure of loan obligation.

South Carolina

  • Represented special servicer on $6.8 million CMBS loan secured by a Comfort Suites hotel in Columbia, South Carolina.  Secured appointment of receiver and judicial foreclosure.
  • Represented special servicer on $2.9 million CMBS loan secured by a commercial shopping center anchored by a former Winn Dixie.  Secured appointment of receiver and judicial foreclosure.
  • Represented lender on $4.95 million loan secured by two long-term stay hotel properties in Spartanburg and Greenville, South Carolina.  Handled default and loan restructuring negotiations.  Negotiated and finalized loan sale transaction. Enforced remedies and foreclosed on collateral for successor lender and negotiated assignment of intellectual property rights from borrower to lender (including trademarks); resolved franchise rights and related issues.
  • Represented special servicer on loans totaling $8 million secured by two assisted living facilities located in South Carolina.  Negotiated with borrower on forbearance and restructure of credit facility and subsequent petition for appointment of receiver; and assisted lender in locating purchaser for sale of facilities.

Tennessee

  • Represented special servicer for holder of $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; and secured voluntary turnover of collateral and appointment of examiner to investigate and pursue causes of action.
  • 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 and pursued carve-out litigation.
  • 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 in action against parent company guarantor of loan to special purpose entity 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 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.
  • Represented special servicer on $15.2 million loan secured by office complex in Nashville, Tennessee.  Handled document restructure of loan obligations involving tenancy-in-common ownership.

Virginia

  • Represented special servicer on $70 million loan secured by 10 long term care facilities in Virginia.  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.
  • Represented servicer on $44 million loan secured by office complex in Hampton, Virginia.  Foreclosed on the property and negotiated lease modifications with tenants on behalf of holder.  Pursued carve-out liability claim against guarantors based on various recourse triggers.
  • Represented special servicer holding $6 million loan secured by skilled nursing facility in Virginia.  Negotiated regarding restructure based on state imposed ban on admission. 

Other Jurisdictions

  • Negotiated and implemented loan modification and extension on behalf of special servicer for holder of $50 million loan secured by hotel in Rhode Island.
  • 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.
  • Represented lender on $25 million loan secured by a seniors housing campus located in Bozeman, Montana.  Negotiated and implemented loan restructure.
  • Represented lender on $7.3 million loan secured by long term care facilities located in Oregon.  Negotiated and implemented loan restructure.
  • Represented special servicer on $39.5 million loan secured by property located in Phoenix, Arizona.  Pursued receivership and handled sale of property through foreclosure.
  • Represented special servicer on $12 million loan secured by four long term care facilities in Chapter 11 bankruptcy pending in Austin, Texas.  Litigated cash collateral issues, unauthorized merger of subsidiaries into parent, and priority dispute with working capital lender; prepared competing plan of reorganization to ensure sale of facilities through bankruptcy auction; negotiated subsequent joint plan and auction to secure payment of principal balance; litigated with guarantor regarding deficiency and exemptions.
  • Represented lender holding $10 million loan secured by assisted living facility in Arizona.  Negotiated extensively with numerous LLC members of borrower, guarantors, trade lien holders and state of Arizona in connection with restructure of debt; coordinated Section 363 bankruptcy sale of collateral; handled documentation and close of sale and payoff of lender.
  • Represented special servicer on $50 million loan secured by six long term care facilities located in Pennsylvania, including CCRC campus.  Secured confessed judgment and commenced foreclosure proceedings.  Negotiated restructure of both securitized and non-securitized loan obligations with borrower to avoid Chapter 11 bankruptcy filing; restructured document loan, including take-out of bond holders, extension of maturity dates and variable rate terms; collapse of securitized trust; take-out of working capital lender; and ultimate payoff of loans.