On this episode of Closed!, Lee sits down with Michael Cohen, Managing Partner of Brighton Capital Advisors, to unpack what is happening behind the scenes in the commercial mortgage-backed securities market, and why the next several years could present serious challenges for commercial real estate borrowers.
Michael explains how CMBS loans are structured, why their leverage and nonrecourse features can make them attractive, and what changes once a loan is securitized and the original lender no longer controls it. The conversation also examines the wave of ten-year loans approaching maturity in 2027, the backlog created by post-COVID extensions, and the growing pressure facing multifamily, office, and hotel assets. Michael explains why borrowers should begin preparing six to nine months before a maturity or anticipated default, what lenders expect to see in a workout proposal, and why waiting until a loan reaches special servicing can significantly reduce a borrower’s leverage.
What does this mean? Simply this: when you engage us, we are fully invested in arriving at the best possible outcome for you. Advocating for your interests becomes our number one priority from the moment you call us until long after the contract is signed or decision rendered.
The purchase or sale of real estate is a major financial transaction in a person or company’s life. A real estate transaction is a contract where the terms of the documents will determine your rights, so it is essential to take an aggressive approach to the negotiation and drafting of these documents. Failing to do so could cause the loss of significant value and may bind you to unfavorable terms.
Especially in a high-priced market such as NYC, it is important to approach these transactions with help from a dedicated attorney. Property transactions require disciplined attention to detail as well as in-depth knowledge of the law. Let a New York City real estate lawyer protect your rights and preserve your best interests.
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