The Howard Hanna Showcase of Homes - Cleveland 11-20-16

Lease defaults are at a record high and vacancies are mounting, providing significant leverage to tenants in lease negotiations. Tenants seeking to benefit from current market conditions are pressing for restructured lease terms, including reduced rent and other midterm concessions. Moreover, tenants concerned about their landlords financial stability are insisting upon subordination, non-disturbance and attornment agreements to protect themselves. At the same time, tenants with failing businesses are pursuing lease workouts to avoid eviction.

Real estate equity investments and joint ventures have become an increasingly important part of the real estate investment arena, particularly hotel properties. Travel restrictions and health concerns had an extreme impact on hotel properties and operations, and occupancy remains low due to reduced travel. The joint venture model for hotel acquisitions offers many benefits, including increased access to capital. The joint venture agreement and other related documents are very complex and fiercely negotiated. Real estate and finance counsel must understand all the pertinent issues to successfully evaluate and mitigate risk and address economic issues when negotiating and structuring a joint venture agreement for hotel transactions. Listen as our authoritative panel of real estate practitioners and advisers reviews vital legal issues in joint ventures for hotel acquisitions and development, taking into account unique issues in this asset class. The panel will focus on preferred return/promoted interest, carried interest, cash flow splits, risk allocations, guarantees, unwind provisions, and other major decisions.

Oftentimes insufficient time is factored in for project design and technical review and obtaining required government approvals. Developers may also not fully appreciate the challenges that will be faced in funding the development, structuring the condominium regime and negotiating with associations and surrounding property owners to address title, easement and cost-sharing agreements. Additionally, operational issues associated with an urban condominium development, such as parking, transportation, use restrictions, public space enjoyment, integration of different types of users and ongoing cooperation with governmental agencies, can present ongoing challenges.

Medical office leases differ from standard commercial leases in several respects. There may be development and title issues unique to a medical office building (MOB) because it may be located within a hospital campus and may be subject to medical use restrictions and easements which impact its operation. The hospital owner often desires to retain fee ownership of an entire medical campus, so the MOB might also be subject to a ground lease. Counsel for the landlord or the tenant will want to see these matters addressed in the agreement. There are also federal regulations to consider in drafting medical office leases. Medical office leases may be subject to the Stark Law or the Anti-Kickback Statute, which applies to referrals for services payable under federal healthcare programs. Leases require specified criteria to comply with federal Stark and Anti-Kickback regulations and qualify for an exception and/or safe harbor. MOB leases should also address the obligations of the landlord and the tenant about HIPAA, ADA, and environmental compliance. Listen as our authoritative panel discusses the development and regulatory issues associated with medical office leases. The panel will review the operational constraints often presented by restrictive covenants, easements, and ground leases impacting MOBs, the best leasing practices for achieving compliance with the Stark Law and the Anti-Kickback Statute, and compliance with HIPAA, ADA, and environmental regulations particular to medical offices.