Real Estate sector: Top of Mind COVID-19 sector insights

The human and business impact of the coronavirus disease 2019 (COVID-19) pandemic has been felt throughout the world and has created significant challenges for those operating in the real estate sector. With over 500 real estate lawyers around the globe, we at DLA Piper are well positioned to help our clients in the real estate sector meet these challenges.

We are passionate about helping our clients succeed during this difficult period and are fully committed to providing practical guidance and creative solutions. To that end, we have created an industry-leading Coronavirus Resource Center, a central repository of thought leadership across sectors, practice areas and industries. Below you will find some of our most popular insights about developments and trends in the real estate sector.

Please contact us or your DLA Piper relationship lawyer if you have any questions or if we may be able to assist you in any way. We hope that you and your colleagues and families remain safe and well. As always, we are here for you.

Top COVID-19 considerations for the Real Estate sector

• Significant distress in many asset classes, especially hospitality, entertainment and retail
• Potential for significant loan and lease defaults
• Uncertainty about asset valuation/pricing
• Uncertainty about the impact of the pandemic, and about government orders issued in response, on contractual obligations (eg, tenants’ obligation to pay rent)
• Operational and legal challenges in reopening/reactivating commercial real estate as stay-at-home orders are lifted
• CARES Act and similar legislation
• Potential concerns around workouts, restructuring and bankruptcy

Real Estate sector insights

Finance COVID-19: pre-negotiation letters as a critical tool for real estate workouts There is no standard PNL; a well-drafted agreement will address the specific circumstances of the parties and the project. Structured real estate finance: The basics of tranching real estate debt Given the greater likelihood of workouts and foreclosures in the wake of COVID-19, it is important for investors to understand the interplay among multiple creditors exercising different rights under different financial structures. Loan modifications and forbearance during the COVID-19 crisis Regulators, and the insurance industry, are encouraging lenders to negotiate loan modifications and forbearance with affected borrowers rather than immediately enforcing remedies. The lender’s playbook in the time of COVID-19 In these times, how should secured real estate lenders be approaching their loan portfolios? As with any market downturn, real estate lenders are bracing themselves for their borrowers’ requests. Operational Coronavirus and the US commercial real estate sector Key issues to keep in mind for real estate owners, operators, developers, managers and users. Public legislative processes and public meetings during the time of COVID-19 Municipalities and petitioners must take steps to ensure the legal sufficiency of public participation in remote public hearings. Webinar US commercial real estate and the impact of COVID-19 Access the materials for this webinar exploring the pandemic’s impact on the commercial real estate sector. Podcast Giving back during a pandemic DLA Piper’s John L. Sullivan talks with Dean Shapiro of Oxford Properties about ways the company has served its communities during the COVID-19 pandemic; Mariah DiGrino talks with Kate Maehr, director of the Greater Chicago Food Depository, about the pandemic’s effect on its daily operations. Podcast Lessons learned: Reopening of Asia in wake of COVID-19 In the seventh episode of our Beyond the Curve podcast series, Susheela Rivers and John Sullivan speak with Christina Gaw, Managing Principal & Head of Capital Markets at Gaw Capital, about the reopening of office, retail and hotel properties in Asia in the wake of the COVID19 pandemic. Government action Coronavirus: US federal and state governments work quickly to enable remote online notarization and SBA PPP loans to meet global crisis As more businesses are forced to work remotely due to the coronavirus disease 2019 (COVID-19) crisis, several federal and state governments are moving quickly to enable fully electronic processes to keep businesses operating. The US CARES Act and related relief for the multifamily industry: Part I An introduction to the provisions of the CARES Act that offer relief to multifamily borrowers. The CARES Act and related relief for the multifamily industry: Part II – the Fannie Mae Forbearance Program Specific features of the mortgage forbearance program offered by Freddie Mae. The CARES Act and related relief for the multifamily industry: Part III – Freddie Mac Forbearance Program Specific features of the forbearance program offered by Freddie Mac. Webinar CARES Act: A practical guide for the real estate industry In this webinar, DLA Piper’s Real Estate, Tax and Government Affairs teams review provisions of the CARES Act and highlight opportunities that may be available to real estate entities.

Construction Coronavirus and construction: Q&A Exploring key issues that affect the success of a project – outside forces, market factors, and contracts. Webinar COVID-19 and construction: touching all the bases now In this webinar, our Construction team discusses how COVID-19 is impacting ongoing and future construction projects, including potential claims. Employment Webinar US back to work considerations for employers Access the materials for this webinar exploring practical aspects of safe reopenings. Podcast Reopening the Workplace DLA Piper’s Ryan Vann and Rita Patel highlight near-term employment and compensation strategies for US employers to consider when bringing people back to the workplace. Landlord/ Tenant/Lease Rent relief options for commercial leases: approaches to making a deal for landlords and tenants Exploring the options. Practical advice for US commercial landlords relating to COVID-19 General areas for landlords and building owners to consider as they address the impact of COVID-19 on their buildings, leases and other agreements.