Real Estate

  • August 20, 2014

    Bank Of America, US Reach $17B Mortgage Settlement

    Bank of America Corp. and the U.S. Department of Justice on Wednesday reportedly agreed to a nearly $17 billion settlement that will resolve the bulk of the financial crisis-era claims against the beleaguered bank.

  • August 20, 2014

    S&P Says German Lender's False Ratings Suit Is Too Late

    Standard & Poor’s Ratings Services on Wednesday pressed a New York federal judge to quash a lawsuit from German lender IKB Deutsche Industriebank AG that claims the ratings agency gave falsely positive ratings to an investment vehicle filled with residential mortgage-backed securities, calling the action untimely.

  • August 20, 2014

    Fla. Condo Seller Pleads Guilty To Bank Fraud, To Pay $18M

    Brendan Bolger pled guilty on Wednesday to his role selling condominiums through shell company Capital Management Guarantee LLC as part of a bank fraud scheme and has agreed to pay $18 million, according to the U.S. Attorney’s Office for the Middle District of Florida.

  • August 20, 2014

    Mich. Appeals Court Remands 'Commercial' Tax Label Fight

    A Michigan state court erred when it reversed a State Tax Commission ruling that placed a higher tax burden on a data storage company in the city of Livonia, a state appeals court said Tuesday, remanding the case and saying the lower court applied the wrong standard of review.

  • August 20, 2014

    RE Rumor Mill: Tishman, Sterling Bay, Lend Lease-AXF

    Tishman Speyer has reportedly paid $59 million for a long-term leasehold at a Manhattan building, while Sterling Bay is said to be in talks to sell land beside its Evergreen Park, Illinois, mall, and Lend Lease and AXF Group are reportedly in discussions to partner on a block-long mixed-use development project in Sydney.

  • August 20, 2014

    Texas Firm Can't Use Immunity To Duck Atty Fraud Claim

    A Texas appeals court on Tuesday reversed a grant of attorney immunity to Dallas firm Mackie Wolf & Zientz & Mann PC, saying although the actions the firm took were on behalf of its clients, it couldn’t escape an allegation that it helped perpetuate the use of a fraudulent promissory note.

  • August 20, 2014

    Herrick Shells Out $100M For 29 Walgreen-Leased Properties

    Affiliates of Boca Raton, Florida-based The Herrick Co. Inc. have paid about $100 million to acquire 29 pharmacy and retail properties across the country currently leased to Walgreen Co., the real estate investment firm's chairman announced Wednesday.

  • August 20, 2014

    Oregon Tax Court Says State Misvalued Convention Center

    An Oregon tax court ruled on Tuesday that a convention center located in Bend was worth just $2.7 million in 2008, rejecting a contention by the state’s department of revenue that the property should have been valued at $16.7 million due to its relationship with a nearby hotel.

  • August 20, 2014

    Thompson & Knight Gets $960K Malpractice Judgment Nixed

    A Texas appeals court on Tuesday reversed a $960,000 malpractice judgment against Thompson & Knight LLP in a suit that sought to hold the firm responsible for failing to discover a title defect in an oil and gas deal, saying there was insufficient evidence to support the damages.

  • August 20, 2014

    NYC Judge Rejects Challenge To $3B Willets Point RE Plan

    A Manhattan trial judge on Wednesday dismissed a challenge brought by city community groups to a $3 billion plan to develop a blighted area bounded by Citi Field, Flushing Meadows and Corona Park in Queens, New York, finding city and state law contemplate the project as part of the public interest.

  • August 20, 2014

    Gatehouse, Arch Capital Pay $89.6M For Manhattan Marriott

    Gatehouse Bank PLC and Arch Street Capital Advisors LLC have paid $89.6 million to purchase the Residence Inn New York Marriott at 144 East 48th St. in Manhattan from AEW Capital Management, according to records filed with the city Tuesday.

  • August 20, 2014

    Investors To Keep Growing Alternative Asset Portfolios

    The amount of institutional investors beefing up their alternative asset teams in the past year outnumbered those making cuts by more than seven to one, reflecting widespread appetite for investments outside traditional categories of stocks, bonds and cash, according to a survey released Wednesday.

  • August 20, 2014

    Barclays Capital And Thornburg Trustee Settle For $23M

    Barclays Capital Inc. has agreed to pay $23 million to resolve a suit brought by the trustee for defunct Thornburg Mortgage Inc. over a $2.7 billion mortgage-backed securities liquidation that allegedly undervalued Thornburg's assets and contributed to its collapse, according to court documents filed on Wednesday in Maryland bankruptcy court.

  • August 20, 2014

    10th Circ. Won't Halt MBS Suit Despite High Court CTS Ruling

    The Tenth Circuit has given the green light for a federal regulator to proceed in its claims against banks over $1.74 billion of soured mortgage bond deals that capsized two credit unions, saying the U.S. Supreme Court's recent CTS Corp. decision did not upend its original opinion that the suits were not time-barred.

  • August 20, 2014

    Firm Conflict Led To Unfair $32M HSBC Deal, Class Says

    Disgruntled class members on Tuesday pressed a Florida federal judge to scrap a $32 million settlement of a suit alleging HSBC Bank USA BA and others overcharged homeowners for force-placed insurance, again pointing to an alleged conflict involving a named plaintiff who is also a partner at class counsel’s law firm.

  • August 20, 2014

    Dealmakers Q&A: Farella Braun's Samuel Dibble

    Changes caused by the increase in the cost of money and the increase in the mobility of the service workforce are two trends that I see combining to change future deal activity, says Samuel Dibble of Farella Braun & Martel LLP.

  • August 19, 2014

    Del. Chancery Judge Axes Trustee Suit Over EMC Mortgages

    A Delaware Chancery judge slashed a mortgage trustee’s breach of contract suit that alleged EMC Mortgage LLC and JPMorgan Chase Bank NA misrepresented the quality of thousands of loans it sold, ruling Tuesday that the bulk of the claims were time-barred.

  • August 19, 2014

    American Realty Accused Of Dodging $63M Award

    American Realty Investors Inc. was slapped with a lawsuit in Texas federal court Tuesday by a Michigan real estate mogul who said the company abused the bankruptcy process and is hiding assets to avoid paying a $63 million judgment stemming from a soured apartment complex deal.

  • August 19, 2014

    9th Circ. Asks Wash. High Court To Define 'Collapse'

    The Ninth Circuit on Tuesday asked the Washington state Supreme Court to define what “collapse” means in an insurance policy under state law, in a suit against State Farm Fire and Casualty Co. by the homeowners in a Seattle condominium complex.

  • August 19, 2014

    RE Rumor Mill: Investcorp, Starwood-M7 Venture

    Investcorp has reportedly bought a series of office buildings in Jacksonville, Florida, for $133 million, while Starwood and M7 Real Estate have reportedly purchased five industrial properties in Germany for $60 million.

Expert Analysis

  • A Review Of The Subscription Credit Facility Market

    Michael C. Mascia

    Despite the nearly uniform positive trending in the data supporting facility credit performance, none of it goes to the heart of the fundamental credit underwriting premise of a facility. And from this vantage point, the 2014 year-to-date trending has been far less beneficial for lenders, say attorneys with Mayer Brown LLP.

  • Foreclosure Sale Purchasers Face New Risks In Illinois

    Simon A. Fleischmann

    A recent Illinois Appellate Court decision in 1010 Lake Shore Association v. Deutsche Bank National Trust Co. has brought to the forefront the ongoing dispute between foreclosure sale purchasers and homeowners associations regarding the extent to which purchasers are responsible for HOA assessments — and the balance appears to have shifted toward the HOAs, say attorneys with Locke Lord LLP.

  • Clarifying Option-To-Purchase Forfeiture Standards

    Noble F. Allen

    The Connecticut Supreme Court in Pack 2000 Inc. v. Cushman tackled the issue of what constitutes the forfeiture of a tenant’s right to exercise an option to purchase a leased property, and the court’s ruling shows that a landlord must not wait until after the tenant’s exercise of its option to raise a noncompliance argument, says Noble Allen of Hinckley Allen & Snyder LLP.

  • Strike, You’re Out! How Zoning Codes Are Being Invalidated

    Dawn M. Tancredi

    Over the years, local zoning ordinances have been stricken for failure to comply with federal law — from the Communications Act to the Federal Housing Amendments Act. Now, with more cities passing zoning code regulations regarding marijuana, it will be interesting to see what challenges are raised, says Dawn Tancredi of Obermayer Rebmann Maxwell & Hippel LLP.

  • An In-House Lawyer's Top 10 Tips For Outside Counsel

    Francis M. Drelling

    To this day, I have yet to see a litigation hold letter that was written by someone who understands the realities of how a business is actually run. In-house counsel cannot issue decrees to business units that read like they are issued by the king to his subjects, says Francis Drelling, in-house counsel at Specialty Restaurants Corp.

  • Consider Hearsay Issues Before A Rule 30(b)(6) Deposition

    Susan F. DiCicco

    To avoid the risk of multiple depositions or inadmissible testimony, all counsel should focus prior to a deposition — and before designating a witness — on knowledge and hearsay issues that may arise at Rule 30(b)(6) depositions, say Susan DiCicco and Stephen Scotch-Marmo of Bingham McCutchen LLP.

  • Lien The Dirt Preclosing?

    Manuel Farach

    A Florida appellate court’s recent decision in a real estate broker case dramatically changes the commission landscape, and the opinion answers the question whether the right to lien real property — instead of just liening the net proceeds of closings — survives the adoption of the Florida Commercial Real Estate Sales Commission Lien Act, says Manuel Farach of Richman Greer.

  • Law Firms May Be Violating Copyrights

    Roy Kaufman

    On average, a legal professional forwards content to 14 different people per week. Yet many attorneys and staff lack an understanding of copyright and their firm’s specific policies regarding shared third-party materials, says Roy Kaufman of Copyright Clearance Center.

  • Condo Hotel Financing: Benefits And Hazards Of Rule 506(c)

    Allison McCarthy

    While there may be attractive new options for financing condo hotel projects under the U.S. Securities and Exchange Commission's new Rule 506(c), the scope of potential purchaser claims is greatly expanded, and disputes are likely to be more onerous and costly, say Allison McCarthy and David Sofge of Holland & Knight LLP.

  • A Primer On Construction Loan Disbursement Requests

    Excerpt from Lexis Practice Advisor
    Ross L. Yustein

    Disbursements under a construction loan after the closing date will be made only if the borrower makes an application or a draw request for such advance and if certain conditions set forth in the loan agreement are satisfied, but note that a lender may impose additional conditions based upon its own customs and practices, say attorneys with Kleinberg Kaplan Wolff & Cohen PC.