Edward J. Hannon, a Partner in the Firm’s Corporate and Real Estate Practice Groups, authored, "Overleveraged Real Estate: Understanding the Tax and Structural Issues that Arise in a Recapitalization,” a Freeborn & Peters White Paper.
About This White Paper:
Real estate companies seeking new financing on a loan have traditionally managed their outstanding debt by receiving funding from three commonly used options. Recently, a fourth option has emerged: working with a third party equity provider for tax free recapitalization of the borrower entity. This article explores the specific ways this option works, including the structure, voting rights, tax considerations and other issues to consider.