CPS Commercial Real Estate

operational optimization & debt restructuring

[Shlomo Chopp @ShlomoChopp]

One outside observer, Shlomo Chopp, an adviser on distressed commercial real estate deals, said the lawsuit could have large implications for CMBS borrowers, not just investors.

(continued in thread)
Thanks for the quote @TheKeithLarsen
/1

https://t.co/FWwMxlMydG

[Shlomo Chopp @ShlomoChopp]

- Depending on the servicer asset manager, some properties that hiccuped during COVID are being pushed further into distress to hoard fees

- Servicers are enforcing the letter of the law and not giving borrowers much leeway.
/2

[Shlomo Chopp @ShlomoChopp]

#CMBS WORKOUT 2021
on the ground observations
not statistical — based on client experiences…

- Deferral repayment period kick-ins (often PG’d) are causing angst
/1
@CPS_CRE

[Shlomo Chopp @ShlomoChopp]

- On smaller loans, some Servicers are using (threatened) recourse litigation - which either gets the borrower to fold or escalates the dispute.

- Significant Borrower friendly workouts are still far and few between especially given the lack of long-term market clarity.

/3

[Shlomo Chopp @ShlomoChopp]

- Too many Borrowers do not know that according to their loan docs, litigating with their lender may trigger recourse- may even include responding to a foreclosure complaint.

Hopefully 2022 will bring clarity and resolutions.

Glad to answer any questions

#CMBS
@CPS_CRE
/4

[CPS Commercial Real Estate @CPS_CRE]

- Too many Borrowers still do not know that according to their loan docs, litigating with their lender may trigger recourse. Yes, this may even include responding to a foreclosure complaint.

Hopefully 2022 will bring clarity and beneficial resolutions.

#CMBS
@ShlomoChopp
/4

[CPS Commercial Real Estate @CPS_CRE]

#CMBS WORKOUT 2021 🧵🪡🧶
on the ground observations
not statistical — based on client experiences…

- Deferral repayment period kick-ins (often PG’d) are causing angst

/1

[CPS Commercial Real Estate @CPS_CRE]

- On smaller loans, some Servicers are using (threatened) recourse litigation - which either gets the borrower to fold or escalates the dispute.

- Significant Borrower friendly workouts are far and few between given lack of long-term market clarity.
/3

[Shlomo Chopp @ShlomoChopp]

Happy Holidays to all!
@CPS_CRE · @ShopFulfill · @retalesio · @LoftWorksWest

#CREINVENT

[CPS Commercial Real Estate @CPS_CRE]

Tomorrow- Friday the 13th. Distressed Real Estate Strategies. Clubhouse.

https://t.co/Uz0KrfDstZ

[Shlomo Chopp @ShlomoChopp]

Is this Step #1 of the geat correction?

Thank you @CandaceCarlisle for reaching out for my opinion.

https://t.co/h0z3ZSHhKA

[Shlomo Chopp @ShlomoChopp]

Is an overcorrection causing a real estate bubble?

Thank you @mheschmeyer for the call.

https://t.co/Bd8EdY8hAC

[Shlomo Chopp @ShlomoChopp]

1- Understand fiduciary motivations, & limitations
2- Know your default & recourse triggers
3- Is the issue short term or long term?
4- Is $$ a solution? What's your liquidity?
6- Have a short-term & long-term plan - and a plan B.
Watch at https://t.co/AhCCTg5vCN
#askcps @CPS_CRE

[CPS Commercial Real Estate @CPS_CRE]

𝗙𝗼𝗿𝗯𝗲𝗮𝗿𝗮𝗻𝗰𝗲. 𝗖𝗠𝗕𝗦 𝗮𝘁 𝗮𝗻 𝗜𝗻𝗳𝗹𝗲𝗰𝘁𝗶𝗼𝗻 𝗣𝗼𝗶𝗻𝘁.

This #covid19 fix shakes #CMBS status as a credit-rated coupon-clipper. What changes will we see? Will #borrowers come back? @CPS_CRE

#askCPS

Full episode: https://t.co/dv5rstJzJN

[Shlomo Chopp @ShlomoChopp]

𝗙𝗼𝗿𝗯𝗲𝗮𝗿𝗮𝗻𝗰𝗲. 𝗖𝗠𝗕𝗦 𝗮𝘁 𝗮𝗻 𝗜𝗻𝗳𝗹𝗲𝗰𝘁𝗶𝗼𝗻 𝗣𝗼𝗶𝗻𝘁.

This #covid19 fix shakes #CMBS status as a credit-rated coupon-clipper. What changes will we see? Will #borrowers come back? @CPS_CRE

#askCPS

Full episode: https://t.co/gaebOCYzS0

[Shlomo Chopp @ShlomoChopp]

“We see a mess coming down the pipe,” said Shlomo Chopp, managing director of New York-based CPS, a firm that focuses on CMBS debt restructuring. “Whether it’s a mess for the borrower, or the lender and bondholder, it’s going to be a mess for somebody.” https://t.co/xcn6pwNPUV

[CPS Commercial Real Estate @CPS_CRE]

A “how-to” guide for borrowers with distressed #realestate #CMBS debt. Thank you to Robert Kracht Craig Meek, @GueldaVoien, @schopp_case and Stacy Stack-Rudolph
#askCPS

https://t.co/QLtXIp2NL5

[Shlomo Chopp @ShlomoChopp]

A “how-to” guide for borrowers with distressed #realestate #CMBS debt. Thank you to Robert Kracht Craig Meek, @GueldaVoien , and Stacy Stack-Rudolph
#askCPS

https://t.co/fRrtxPVfVu

[Shlomo Chopp @ShlomoChopp]

Plug+Work, launching today through global brokerage @CushWake , will revolutionize built-to-suit class-A office space. Companies can respond to shifting workplace strategy trends brought about by #COVID19 by converting to nimble, cost-efficient space.
https://t.co/4MFpMcsDlL