News
WHO NEEDS A GYM?
April 8, 2010
| Riddle me this: Dykema's Mike Kurtzon and Rick Bendix work out together, but neither breaks a sweat. Stumped? It seems Mike is a three-recession workout vet and Rick specializes in bankruptcy and fraudulent transfers, both very busy in a world where workouts are becoming increasingly complex. | |||
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| Mike recently documented the refinancing on a 12-property, $100M portfolio of amusement parks, golf courses, and ski resorts in nine states. (And yet he asked us to meet in his office?) Together, the duo, who typically rep the lender, is working out a condo/retail project in Colorado for which the owner will put up a second property in upstate New York as collateral. Mike says workouts haven't been limited to one geographic area or asset class. The prevailing attitude? Banks don't want to own properties that are unlikely to perform any better for them than their troubled borrowers. | |||
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| On the bright side, Rick and Mike say they've seen some loans for cash-flowing properties. Government funding has helped these guys (and their team of 18 real estate lawyers in the Chicago office) finance new affordable housing throughout the Midwest. Mike thinks it will be eight to 12 months before we see lending on a large scale again, and of course retail will be the laggard. |
