Podcast: FTI Expert’s Hub: Contemplating Handing Back the Keys? Think Again
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June 18, 2024
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In a FTI Expert’s Hub podcast, Managing Director Scott Drago discusses the complexities of handling distressed office properties. With increasing office-loan defaults, he advises against hastily transferring property titles back to lenders. He explores financial, tax and strategic implications, stressing the importance of fully understanding all options and consequences. Scott also highlights why lenders might prefer mutually beneficial solutions over property setbacks. The discussion aims to provide insights into managing underperforming Class B and C office assets amidst a challenging market.
Time Breakdown:
- Still a bifurcated office market? (0:40)
- The financial prospects of Class B/C office properties (2:37)
- What borrowers should to do before handing their office assets to their lenders (3:51)
- Implications of transferring title to the lender (5:50)
- Tax considerations when reducing or restructuring debt (13:20)
- Other options (18:04)
- Why lenders are open to finding a mutually beneficial solution (21:15)
- Owning an office property through 2025 or beyond—is it worth it? (23:43)
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Published
June 18, 2024
Key Contacts
Managing Director