Distressed mixed-used projects.
Changes in the cost of money combined with supply-chain issues are making it an issue many developers (and bankers and builders and municipalities) are dealing with every day.
Many mixed-use projects seemingly are in danger of not being completed.
What to do?
On Feb. 7 at the New Jersey Law Center in New Brunswick, leading figures in the sector will participate in a case-study program entitled: “Your Mixed-Use Redevelopment Project Is in Distress. Now What?” (To register, click here.)
The event, put on by the Rutgers Center for Real Estate, aims to provide insights for developers, lenders, investors, commercial real estate professionals and community leaders.
The event will feature a panel of experts playing various roles in a fictional case (that will hit home for many). The case was authored by Ted Zangari of Sills Cummis & Gross and George Jacobs of Jacobs Enterprises.
The first panel will discuss the issues and challenges. The second panel will discuss finding a path forward.
The event also will feature a one-on-one discussion with Jonathan Schultz of Onyx Equities and then a second panel of experts (to be announced) who will offer analysis in a segment titled, “Figuring Out a Way Forward.”
Zangari, who will facilitate the panelists’ dissection of the case study, said it will have impact.
“These panelists and audience experts will represent various roles in the fact pattern and attempt to put the failing, half-built project on a path to completion,” he said.
That’s advice many folks could use.
“This discussion could not be better timed,” he said. “In each real estate recession, restructuring experts work themselves out of a job by the end of the downturn — leaving a talent vacuum when the next recession happens.
“We’re at that point now. Many of the professionals in commercial real estate and lending today were in high school or college during the last crisis 15 years ago, so there’s a knowledge void. What better venue to fill that gap than the Rutgers Center for Real Estate?”
Here’s a look at the panelists:
- Joel Bergstein(Lincoln Equities Group): Serving as owner;
- Joshua Schainker(Houlihan Lokey): Serving as owner’s restructuring consultant;
- Jason Teele (Sills Cummis & Gross): Serving as owner’s bankruptcy counsel;
- Jeff Sica (Circle Squared Alternative Investments): Serving as financial adviser to 18 related investors;
- Christopher Coiley (Valley National Bank): Serving as New Jersey bank construction lender/secured creditor;
- Joseph Schwartz(Riker Danzig): New Jersey bank’s bankruptcy counsel;
- Perry Mandarino (B. Riley Securities): Prospective chief restructuring officer;
- Billy Procida(Procida Funding & Advisors): Prospective take-out/rescue investor – entrepreneurial.
- Marjorie Perry(MZM Construction & Management): Prospective substitute general contractor;
- Susan Mello (Walker & Dunlop): Capital markets broker;
- Alan Goodkin (Ackman-Ziff): Investment sales broker;
- Steve Cassidy (Rescue Capital Fund and Denholtz Properties): Prospective substitute developer ;
- Tammy Jones (Basis Investment): Prospective take-out/rescue investor – institutional.
Audience subject matter experts include:
- Appraiser/valuation expert: Michael Hedden, Integra Realty Resources;
- Condominium expert: Ed San George, Integra Management;
- Construction counsel: Aaron Brotman, Cole Schotz;
- Land use counsel: Matthew Posada, Sills Cummis & Gross;
- Municipal counsel: Joseph Baumann, McManimon & Scotland;
- Municipal official: Caroline Ehrlich, Woodbridge Redevelopment Agency;
- Public incentives/finance consultant: Tom Banker, the Banker Group;
- Retail broker: Marta Villa, CBRE;
- State incentives-public official: Dan Jennings, New Jersey Economic Development Authority.
Those attending will be given a copy of the case study in advance.
Zangari feels the format will be a hit.
“We employed a similar case study format for a real estate and health care discussion, involving a cast of executives from health care companies, real estate developers and community leaders, and the result was a spirited debate on the issues identified in the case study,” he said. “The format captivated the crowd of interested parties and we expect this program to do the same.”
Early bird registration for the event, which runs from 8:30 to noon, is open here.
