This two-part series examines several options for the commercial real estate loan in distress. The first installment provided a primer on the traditional, more commonplace options available to the parties. This final installment identifies and examines a more creative approach, one which right-sizes the loan and the underlying real estate and resets value for today’s market.

Right-Sizing the Real Estate Loan to Its Value and Potential Value

The options described in the first installment of this article are real, viable and varied. In many ways they are traditional. They have served the real estate and financial services industries well, in navigating through arduous, uncertain and tumultuous real estate, financial and regulatory markets in our recent history.