Three months ago, a private equity firm approached Tom Galli, a Washington, DC-based attorney with Greenberg Traurig, with an intriguing proposition: it wanted to team up with a bank to acquire a non-performing real estate loan portfolio from a failed institution. The healthy bank would take the assets it wanted from the seized bank; the private equity fund would take the non-performing real estate loan portfolio.
“We took the transaction to the one-yard line, at which point the parties elected not to proceed due to a failure to reach agreement on a couple of business terms,” Galli reports. One major challenge was that there was only a short window, two weeks at best, to negotiate the documentation for this novel transaction. “A critical element was coming up with a balanced agreement within that time constraint.”
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Erika Morphy
Erika Morphy has been writing about commercial real estate at GlobeSt.com for more than ten years, covering the capital markets, the Mid-Atlantic region and national topics. She's a nerd so favorite examples of the former include accounting standards, Basel III and what Congress is brewing.
