The Dirt Lawyer's Blog Archive

I hope you will excuse the recharging I have had the last few weeks. Sometimes bloggers need that, you know, especially when you put out a solo effort without co-writers or guests writing with you. Let's face it: 2009 wasn't a great year for the legal profession or for real estate. The predictions of the bottom keep coming, but there is one problem: notwithstanding all the talk, try to get a loan for any decent size project, especially in development. Good luck. The big story for lawyers was cutting, cutting and more cutting. Rates, associates, partners -- you name it, and it got cut. I have to chuckle at the fact that BigLaw is finally realizing that you have to "add value" to the clients to make the big bucks and keep the clients. Having been in that world, I know firms that do and firms that do not. (I know I add value, as it is why clients hire me in the first place.) Let's see if that lasts into the next boom cycle. The problem with all this "val

According to Adam Metz per this article , GGP is exploring options with "multiple parties." We've been talking about that for a while. The good news is for those who bought low when it was uncertain whether shareholders would be wiped out. Take a look at its share price today. (We're talking less than $.50 at the low up to $10.67 Friday. Wow.) The suitors? According to James Sullivan at Green Street Advisors, count on Simon (the Prime acquisition notwithstanding), Brookfield and Westfield. I would still not be surprised if a "dark horse" emerged from the hedge fund, private equity or other sectors. But the obvious players have to be the front runners, if for no other reason than they now have debt stakes.

John Reeder has a good blog post on the Simon acquisition of Prime Outlets. I agree with his thoughts on market timing. I think buying before market bottom is fine as long as the numbers work. And Simon obviously believes that. If I recall, Simon had billions of dry powder. This is an 80% cash deal, so there is money left for other acquisitions. While valued at $2.33 billion, Simon is only paying ~$560MM cash and assuming debt and preferred stock obligations. Todd Sullivan says that antitrust problems may have played a role with multiple bidders and that Simon is out, with Brookfield the main player now. His story also says Brookfield would go the JV route with GGP, which is much more palatable to management. Makes some sense. And Brookfield has also apparently become a " meaningful creditor " of GGP. (I believe Simon also owns some GGP debt.) Simon may or may not be out, Brookfield may or may not be in the lead, and I would still not be stunned if someone else i

Sorry for the lack of posting lately -- a lot going on at work and otherwise and I haven't been inspired to write much. But there is much going on. Yet another (small) CMBS deal for Inland Western properties? That's the word . The NYT weighs in on the Block 37 situation . The Chicago real estate and zoning boutique firm Schain Burney Ross & Citron, Ltd. is apparently losing roughly half its lawyers to Thompson Coburn LLP after merger talks break down, including Messrs. Ross and Citron. I have always liked and respected the Schain Burney firm for their work, although I'm not sure why I never looked into working with them. I guess it was because I was satisfied with my job. GGP has filed the restructuring plan and completed what must have been the Mother of All Negotiations with the lenders, resulting in a restructuring of $9.7 billion in debt. Is that enough? Will GGP remain on its own? My spider senses tell me there may be another party looking at the company be