Description: Prudent buyers of commercial property typically expect all of their acquisitions to come with nicely wrapped boxes of due diligence, with all "I’s" dotted and "T’s" crossed. Purchasers of distressed assets, however, rarely have that luxury. Because sellers of distressed assets often place great value on the ability to close quickly and because the existing diligence files on distressed assets are often old, sparse or non-existent, the distressed asset buyer often faces the prospect of having to purchase an asset with little confirmatory due diligence and few (if any) seller assurances as to underlying asset quality. However, a buyer must do at least some minimal due diligence in order to justify the negotiated purchase price being paid for the asset.

This program will review five important categories of due diligence typically obtained by buyers in commercial real estate transactions: title, survey, environmental, lease/contract, and legal compliance due diligence. It will then discuss the differences between the "lender grade" versions of this due diligence commonly obtained in non-distress transactions and less robust but still viable alternatives to that "lender grade" level of due diligence for consideration by distressed asset buyers

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