Distressed Real Estate: What to Advise Owners/Sponsors

With higher interest rates and uncertain vacancy rates, both the office and multi-family sectors are facing increasingly significant challenges. In this market, legal and financial advisors may need to give clients “tough love” and discourage “kicking the can down the road” strategies which only burn cash.

Depending on specific property metrics and guarantee structures, now may be the time to have very difficult negotiations with lenders. Depending on the circumstances, a conciliatory or adversarial approach might be appropriate. Thus, clients must be confident that their advisors have no divided loyalties with respect to lenders.

Algon’s vice chairman, Bob Fishman, recently addressed this issue in a letter to our friends and colleagues. Please read the letter below.



We recently attended the ABI Spring event in Washington and realized that even colleagues who are familiar with Algon do not fully appreciate the unique resource we provide for non-institutional real estate/hospitality clients (owners, sponsors, family offices) who are facing financial distress situations.

Our approach is straightforward – helping clients maximize the economic outcome of a difficult situation.

We have represented numerous high profile real estate/hospitality owners (including four billionaire types) both in/out of Chapter 11. We have been retained in lieu of national advisory and investment banking firms because of our focus on maximizing value, not running a process or CYA.

What Makes Algon Unique?

No conflicts with lenders.
A “deal oriented” approach.
Knowing when to be adversarial and when to be conciliatory.
Substantial experience working with counsel in developing and implementing complex litigation strategies.
Ability and experience testifying in litigation with major institutional lenders.
Substantial expertise handling guaranty issues.

We believe we are the only firm in the country with this blend of talents, sophistication, and experience.

Our track record speaks for itself . Our assignments have included:

  • The Related Group – as advisor restructured $2.5 billion of debt with over 40 financial institutions on numerous condo projects.
  • Four Seasons-Costa Rica – as advisor restructured over $100 million of debt, and completed worldwide M & A process resulting in recapitalization of the resort.
  • Tradition/Port St Lucie – as CRO of 8,200-acre master planned community with $370 million of debt negotiated a consensual resolution between developer and lenders.
  • One Bal Harbour (Now Ritz Carlton Bal Harbour) – as CRO in confirmed Chapter 11 case navigated among very litigious parties resulting in a successful section 363 sale.

Please reach out to us when you have a real estate client experiencing “issues” where you think your client would benefit from knowing Algon. We look forward to assisting you and helping your client achieve a successful result.

Please reach out to me, Troy or Ed if we can be helpful.

Thank you,

Bob Fishman

Troy Taylor

Ed Weisfelner