Category: Sahn Ward Braff Koblenz PLLC

UNIONDALE, NEW YORK — Following the bankruptcy filing of WeWork, Joel Shafferman, Of Counsel at Sahn Ward Braff Koblenz PLLC, predicts that the New York City real estate market will face severe financial stress as more commercial real estate owners are forced to file bankruptcy in the face of lower commercial occupancy rates and expiring forbearance agreements with lenders entered into during Covid.

On November 6, WeWork, an office-sharing company that was once valued at $49 billion, filed for Chapter 11 bankruptcy protection. As part of the filing, the company is seeking to terminate approximately 70 leases and unload 1.5 million square feet of commercial space in New York City alone. Before the bankruptcy filing, WeWork was valued at only $45 million and its stock lost 99.2% of its value.

According to the filing, WeWork has $18.7 billion in debts and $15.1 billion in assets. A few months before the filing, WeWork successfully negotiated a deal with its lenders to cancel or convert into equity $1.5 billion of its debt and give the company another four years to pay most of it off.

Mr. Shafferman believes that this is not an isolated case, but thinks that these types of situations will become more frequent. “I see it as a real harbinger of the problems that commercial real estate will be facing eminently and in the not-too-distant future when forbearance agreements that occurred during Covid between the real estate entities and the lenders will expire,” he says.

If real estate entities find themselves unable to service their debt, Mr. Shafferman strongly advises them to consider filing for Chapter 11 protection where they can sell their property after retaining a broker and marketing the property. Another advantage of selling real estate during a Chapter 11 bankruptcy, he says, is that the seller does not have to pay the exorbitant real estate transfer tax to the city or the state. “I think we will be seeing a lot more real estate entities filing Chapter 11, and an attempt to restructure their debts with lenders or sell the property,” he says.

Mr. Shafferman concentrates his practice in the areas of bankruptcy law, insolvency and creditors’ rights. He has extensive experience in representing debtors in Chapter 11 and Chapter 7 cases, as well as landlords, lenders, and other creditors in enforcing their rights in bankruptcy cases.

For more information, call (516) 228-1300 or visit www.sahnward.com.

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Follows in Late Father’s Footsteps

UNIONDALE, NEW YORK — Sahn Ward Braff Koblenz PLLC has announced that Edward G. McCabe has joined the firm as Partner. He will work out of the Firm’s Suffolk County office in Hauppauge with Partners John Farrell and Elaine Colavito.

Mr. McCabe concentrates his practice on civil and commercial litigation and appeals, municipal law and legislative practice and real estate law and transactions. He has litigated hundreds of cases in state and federal courts involving complex issues of law. He also has substantial experience litigating cases involving administrative and municipal proceedings and construction contract disputes, including mediation and arbitration proceedings. Mr. McCabe also has vast experience in real estate transactions and the complexity of contractual negotiations.

Prior to joining the Firm, Mr. McCabe managed his own general law practice, handling all aspects of client representation from litigation to real estate transactional work, such as contract and lease preparation.

In addition to managing his own Firm, Mr. McCabe serves as the Vice Chairman of the Town of Islip Zoning Board of Appeals.

Mr. McCabe is admitted to practice in the United States District Court for the Eastern and Southern Districts of New York, and the Supreme Court, Appellate Division, Second Judicial Department.  He is also a member of the Suffolk County Bar Association.

He received his Juris Doctor from the Maurice A Deane School of Law at Hofstra University. Mr. McCabe resides in Bay Shore.

His father, Hon. Edward G. McCabe, was the Firm’s Special Counsel before he passed away on June 16, 2023. A former Chief Administrative Judge of the Nassau County Courts, Judge McCabe joined Sahn Ward in 2009 and worked at the Firm until his retirement in April 2022. In addition to advising clients, he also served as a mentor to the Firm’s attorneys.

“I am honored to join the Firm where my late father had a tremendous influence on the attorneys at the Firm,” Mr. McCabe said. “I look forward to helping the Firm continue to grow its litigation, real estate and land use practices, and work with the Firm’s attorneys, many of whom I have known from my own practice.”

“We are extremely pleased to have Edward join our Firm,” said Michael H. Sahn, the Firm’s Managing Member. “His experience will be an asset to the Firm and our clients, and help us expand our practice in Suffolk County and elsewhere.”

For more information, call (516) 228-1300 or visit www.sahnward.com.

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