The TreppWire Podcast: A Commercial Real Estate Show 351. CMBS Loan Workouts Unfiltered with Shlomo Chopp
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Sep 9, 2025 Shlomo Chopp, Managing Partner of Case Equity Partners, dives into the world of CMBS loan workouts and distressed properties. He shares strategic insights on navigating complex loan restructurings, emphasizing early engagement for better negotiation outcomes. Shlomo compares the flexibility of CMBS loans to traditional bank financing and discusses current market trends in distressed deals. He also tackles the challenges of the appraisal process, highlighting the importance of effective communication and data-driven decisions in today's turbulent real estate landscape.
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Start Workouts In The First 90 Days
- Engage lenders early because the first three to four months most influence the workout outcome.
- Every day you wait makes it harder to recover value, so start proactive negotiations immediately.
Reunderwrite To Convince Lenders
- Re-underwrite the asset from the lender's perspective and prove why the borrower is the solution, not the problem.
- Offer committed dollars or credit support to earn the right to stay and execute the plan.
Negotiate Terms And Know Covenants
- Do not wait or assume documents are non-negotiable; negotiate term sheets and loan documents or decline the loan.
- Start pre-fault positioning and know covenants so you avoid surprise exposures when trouble begins.