Leo Jacobs, speaks with Phil Rosen, Partner at Shutts & Bowen LLP, at the Real Deal forum. They stress the importance of protective measures in forbearance agreements and the strategic need to be "dangerous" enough to stand firm in negotiations.

Real Estate Slowdown and Strategic Counsel

Insights from Phil Rosen at Shutts & Bowen

At the Real Deal forum in South Florida, Leo Jacobs sat down with Phil Rosen, Partner at Shutts & Bowen LLP, to discuss the current state of the real estate market and the critical role of strategic counsel in navigating challenging times. The conversation shed light on the market's slow transaction pace for large multifamily assets and the increasing patience of banks with distressed borrowers.

You can watch the full interview below to gain further insight:

Despite media narratives suggesting widespread distress in the real estate market, Rosen emphasized that this is not as pervasive as reported. "Things are happening, but they’re happening slowly," he explained. Banks are demonstrating notable patience, often allowing borrowers to extend deadlines by six to twelve months, a level of leniency that has exceeded expectations.

Transactional Counsel as a Problem Solver

The discussion delved into the importance of effective transactional counsel in protecting real estate investments. Jacobs, speaking from his experience in bankruptcy and litigation, highlighted the pitfalls of inadequate counsel. Rosen agreed, noting that the details in forbearance agreements are critical to safeguarding a client’s future. His team at Shutts & Bowen takes a proactive approach, fostering partnerships with lenders and focusing on problem-solving rather than placing blame.

"Forbearance agreements are about thinking two steps ahead," Rosen explained. "We insert provisions that might allow lenders to bring in new capital or facilitate a loan buyout, ensuring the client’s bottom line remains protected."

Balancing Collaboration and Assertiveness

Both speakers underscored the importance of collaboration in negotiations while maintaining enough leverage to stand firm. As Jacobs put it, “Engaging with the lender is essential, but you also have to be ‘dangerous’ enough to show you’re capable of standing your ground.” Rosen agreed, highlighting the delicate balance required in these negotiations. "If you owe the bank a little money, it’s your problem. But if you owe the bank a lot of money, it’s the bank’s problem," he quipped.

The conversation between Jacobs and Rosen showcased the evolving dynamics of the real estate market and the strategic thinking required to navigate it successfully. As transactions for large multifamily assets slow and banks exercise patience, the role of experienced counsel becomes even more vital.

PODCAST - Confronting the Impossible with Leo Jacobs.

Known for finding creative, expedient solutions to complex and high-profile cases, Leo excels in matters including distressed investment and asset management, real estate law, corporate law, dispute resolution, business divorces, negotiation, and more. Leo’s extensive expertise in debt and equity structures enables him to employ a full spectrum of legal tools to achieve swift, optimal results for clients. His practice, Jacobs P.C., bridges commercial litigation, corporate transactions, and financial rehabilitation, handling cases across federal, state, and bankruptcy courts, as well as administrative tribunals.

Facing challenges? Reach out to experienced professionals early, prepare for the unexpected, and always approach negotiations with clarity and strength.

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Ruben Izgelov and Leo Jacobs discuss the potential for inflation as optimism rises, with possible Federal Reserve rate adjustments on the horizon.

Interview with Ruben Izgelov, CEO and Founder of WeLend

Continuing our interview series, this discussion focuses on how investor sentiment in the real estate market has shifted from caution to confidence following the Trump administration's win. Previously hesitant investors are now eager to increase their stakes, signaling bullish market momentum. Ruben Izgelov and Leo Jacobs discuss the potential for inflation as optimism rises, with possible Federal Reserve rate adjustments on the horizon. They also assert the need for updated policies to keep pace with evolving market dynamics, predicting a positive trajectory for the sector.

Watch the full interview for key insights and takeaways:

Leo Jacobs: What are the effects of a Trump administration on the commercial real estate side and the residential real estate side? A lot of our investors in our fund today have been, I would say, a little bearish on the market for some time. But what I’ve learned is that many of them are now ready to increase their investment. The sentiment has changed.

Ruben Izgelov: Absolutely. Thanks for having me, Leo. It’s a pleasure to be here with you.

Leo Jacobs: Pleasure’s all mine, Ruben. From what I understand, there are about 700-800 people here. That’s amazing. Out of all those people, I’m standing here with the one and only Ruben Izgelov, CEO and founder of WeLend, a direct lender. Your face and name are everywhere as one of the lead sponsors of this event. So, a lot of credit to you for that. Keep doing what you’re doing. You’re doing an amazing job.

Ruben Izgelov: Thank you, Leo. I really appreciate it.

Leo Jacobs: So, let’s get into it. We’ve been walking around and getting a feel for the market’s temperature after the Trump administration’s win. Now, whether you’re for him or against him, that’s not the discussion here. We’re here to talk about the facts. What’s the impact of a Trump administration on commercial and residential real estate? You’re a lender with a lot of activity in the tri-state area and nationally. How is this administration going to affect your business judgment in the first, second, and third quarters?

Ruben Izgelov: Great question, Leo. Here’s what I’ve experienced over the past few days. Our investors, especially those in our fund, were somewhat bearish during the prior administration. Their whole viewpoint was “wait and see.” But with Trump’s win, I’ve seen a shift. Just yesterday, I was running around Florida meeting with investors. Many of them are now ready to increase their investment. They’re more bullish on what’s to come. I’d say the sentiment has definitely shifted to a more positive outlook.

Leo Jacobs: That’s amazing. So you’ve decided, from a business judgment standpoint, that you’re ready to invest more because the sentiment is positive. But what about those people who don’t agree with the policy decisions? What’s their perspective?

Ruben Izgelov: Honestly, Leo, most of the people in our corner are aligned with the positive sentiment. There’s always a group that’s not happy with the administration—for their own reasons—but I’ve noticed that those individuals tend to stay quiet or "lick their wounds in the corner," so to speak. On our end, both investors and borrowers are very bullish on what’s ahead. We’re seeing more deals and higher levels of investment activity. In fact, while we’re talking right now, I’m pretty sure my phone’s blowing up with calls from brokers, borrowers, or investors looking to deploy capital.

Leo Jacobs: Sounds like a lot of action is happening. Let’s shift to the Fed. Everyone’s curious about what the Fed’s next move will be. They’re set to speak in about an hour and a half. What’s your take on how the Fed is going to react to all of this?

Ruben Izgelov: Oh, that’s a big one, Leo. You’re right—it’s political, but it’s crucial. Look, when you have positivity in the market and strong economic sentiment, you inevitably get inflation. The Fed’s challenge is managing that inflation. They’ll have to decide how to adjust rates based on the administration’s future policies. Trump’s background in real estate gives him insight into the industry’s dynamics, and I think that’s going to influence how things play out. We’re seeing other countries, like Europe, cutting rates—25 basis points just the other day. The Fed might follow suit with a similar reduction. But it’s also possible they’ll hold steady and wait.

Leo Jacobs: So you’re thinking the Fed might be influenced by this positive sentiment and could reduce rates by 25 basis points, following Europe’s lead?

Ruben Izgelov: It’s possible. The sentiment is strong, and there’s pressure on the Fed to support economic momentum. If they see global central banks cutting rates, they’ll likely consider it too. But they’ll also be mindful of inflation—they don’t want it to get out of hand.

Leo Jacobs: Last question for you, Ruben. Assuming the market keeps trending in a positive direction, what changes do you think need to happen for business decisions to become faster and stronger?

Ruben Izgelov: That’s a great point, Leo. We’re a New York-based company, so I’ll speak from that perspective. The policies that worked in the past may not work today or tomorrow. I think the "red wave" we’re seeing now is a sign that it’s time for policy changes. New times require new strategies. Business leaders and policymakers alike need to recognize that what worked before isn’t necessarily effective now. If we’re going to speed up decision-making and drive stronger growth, we’ll need to adapt to the new environment.

Leo Jacobs: Well, let’s hope the Trump administration’s approach works out. It seems like the world’s sentiment is shifting in that direction, and it’s encouraging to hear your perspective.

Ruben Izgelov: Absolutely, Leo. No matter which side of the aisle you’re on, there’s no denying that the world’s moving in a positive direction. I’m excited to be part of it and to see what’s next.

Leo Jacobs: Ruben, thank you so much for your time. It’s been a pleasure talking with you.

Ruben Izgelov: Pleasure’s mine, Leo. Thank you.

Opening a business in Miami can be a dream for many, but the reality often proves more challenging than anticipated.

Navigating the Challenges of Opening a Business in Miami: Insights from Hospitability Expert, Felix Bendersky.

Opening a business in Miami can be a dream for many, but the reality often proves more challenging than anticipated. In a recent interview, Leo Jacobs sat down with Felix Bendersky, a prominent figure in hospitality brokerage and the owner of F+B Hospitality Leasing Brokerage, to discuss the challenges faced by entrepreneurs, especially those aiming to open restaurants and bars in the area.

Here’s a closer look at the critical takeaways from the session:

Felix pointed out the number one issue plaguing businesses in Miami-Dade County: the notoriously slow and inefficient permitting system. This, he explained, can delay business openings, leaving entrepreneurs stuck with mounting expenses before even serving their first customer.

The Financial Burden of Permitting Delays

The permitting delays are just one part of the larger problem facing business owners in the hospitality sector. As Felix explained, many restaurateurs and bar owners, after investing significant amounts of money and energy, find themselves unable to open due to the lengthy permitting process. Entrepreneurs often take out loans, use personal savings, or borrow money from friends and family to fund their ventures. But when delays hit, the financial burden grows heavier, and the dream of opening a successful establishment starts to feel out of reach. "We have restaurants that have spent $1.8 million and never opened," Felix revealed.

Felix emphasized the importance of education, advising potential clients about the challenges they will face when opening in Florida. He highlighted the significance of working with professionals who understand the financial and legal terrain. This is where the expertise of lawyers like Leo Jacobs comes in. Jacobs’ firm specializes in helping clients navigate financial turmoil, advising on everything from leases to bankruptcy protection. 

The key, Leo Jacobs noted, is to educate clients upfront about the potential pitfalls, so they are better prepared to face the realities of opening a business in a competitive market like Miami.

Mitigating Risks in Miami's Hospitality Industry

The discussion then shifted to how business owners can mitigate the risks associated with running a restaurant or bar in Miami. Both Felix and Jacobs strongly agreed that success is not just about a great concept; it's about understanding the numbers and having the right team in place. 

"A good running restaurant in Miami is typically running on a 20 to 22 percent profit margin," Felix asserted, underscoring the importance of financial foresight. When an entrepreneur’s margins are slimmer, as is often the case, they may find themselves in a difficult position, particularly when unexpected expenses arise. In response, Jacobs advised clients to carefully assess their leases, particularly the terms surrounding personal guarantees, and to consider strategies like bankruptcy or restructuring when the financial situation becomes untenable.

Despite the challenges, both Felix and Leo believe that with the right support and advice, entrepreneurs can navigate the tumultuous waters of Miami’s hospitality scene. Both experts emphasize the importance of counseling over mere advocacy. While Jacobs' firm offers strong legal advocacy, it is his approach as a counselor that truly sets him apart. 

By providing clients with a realistic understanding of their options and guiding them toward informed decisions, Jacobs ensures they are well-equipped to make it through the most difficult situations. In a fast-paced, high-risk environment like Miami, having a trusted advisor in your corner is invaluable, and with the support of professionals like Felix Bendersky and Leo Jacobs, the path to success may become just a little bit clearer.

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As the election results are expected to influence the economy, Nazarov provided valuable insights on how business confidence, regulatory changes, and market reactions are shaping the landscape for real estate investors.

How the New Trump Administration is Shaping the Commercial Real Estate Market

Earlier in November, at The Real Deal Forum in Miami, Leo Jacobs sat down with Nazar Nazarov, CEO of LendIQ, at the Jacobs PC booth. The main topic of the interview was how the new Trump administration could potentially impact the commercial real estate market. As the election results are expected to influence the economy, Nazarov provided valuable insights on how business confidence, regulatory changes, and market reactions are shaping the landscape for real estate investors.

Leo:
Good afternoon, everyone. We’re back at Jacob V’s booth here at The Real Deal. I’m joined by Nazar from Lend IQ, and today we want to tackle the elephant in the room. The Trump Administration has won another term. Whether you’re for it or against it, we need to objectively discuss how this will impact the commercial real estate market. Nazar, what’s your take?

Nazar:
Thanks for having me, Leo. I think it’s undeniable that the Trump Administration has been positive for real estate. It’s no secret that Trump himself has been a real estate entrepreneur for over 45 years. His administration’s approach to less regulation and pro-business policies is creating a lot of confidence. You can feel it here in the room—it’s electric.

Leo:
Right. So you’re saying the market is feeding off this confidence. What’s driving that?

Nazar:
It’s about clarity and direction. People are optimistic because they expect less regulation and lower rates, especially with the Federal Reserve meeting happening today at 2:00 PM. The market thrives on predictability, and the Trump Administration projects a business-friendly environment. That kind of stability encourages more transaction volume and capital commitment.

Leo:
So you’re saying that this is empowering the market to make better and faster decisions?

Nazar:
Exactly. The market hates uncertainty. When there’s ambiguity, people hesitate. But with clarity—whether from the government or the Federal Reserve—you’ll see large institutions and family offices deploying more capital. The Trump Administration’s focus on reducing red tape gives investors confidence to move forward.

Leo:
And where does Lend IQ fit into this? How do you help capitalize on this momentum?

Nazar:
At Lend IQ, we’re a direct private lender focused on real estate investors. We handle everything from ground-up development and construction loans to land loans, fix-and-flip, and long-term rental loans. What’s exciting is that right after the election, we saw investors who had projects on the back burner come back to the table. That’s the kind of confidence shift we’re talking about.

Leo:
So you’re saying business confidence translates directly into increased activity for lenders like you?

Nazar:
Absolutely. When borrowers see a stable environment, they’re more willing to take action. The clearer the path ahead, the quicker deals close.

Leo:
Interesting. Now, let me play devil’s advocate for a moment. Critics of the Trump Administration argue that it’s too favorable toward large corporations and institutional investors. What about smaller investors? Are they being left out?

Nazar:
That’s a valid point, but it’s important to understand that not all investors are Blackstone or KKR. At Lend IQ, we work with many small to mid-sized investors—people who own three to five properties in their portfolio. Policies that reduce regulation benefit them too. For instance, eliminating the 1031 exchange, as was floated by the previous administration, would have been disastrous for these smaller investors.

Leo:
So, from your perspective, the metrics on the ground show that Trump’s policies enable faster decision-making, while another administration’s policies might create delays?

Nazar:
Correct. But let’s be clear—this doesn’t mean no regulation at all. Regulation is necessary to keep bad actors out of the market. Overregulation, however, stifles growth. It’s about striking the right balance.

Leo:
And that brings us to the Federal Reserve. What do you think their role is in this equation? Will a basis point adjustment have a significant impact on borrowing and investment?

Nazar:
Great question. When the Federal Reserve lowered rates in the past, the market reacted even before the official announcement because the market is forward-looking. Now, under a Trump Administration, we expect rates to either stabilize or decrease slightly, depending on economic conditions. The market’s response will depend on how the Fed communicates its strategy moving forward.

Leo:
So, it’s not just about rate changes, but about the overall economic confidence?

Nazar:
Exactly. Rates are just one piece of the puzzle. If the market believes the economy is strong and inflation is under control, rates will naturally adjust. Investors will act based on that broader outlook, not just the Fed’s movements.

Leo:
Let me challenge you one more time. Do you think Trump’s business background is enough to keep this momentum going?

Nazar:
Trump’s business acumen is an asset, no doubt. He understands the nuances of deal-making and how to instill confidence in the market. That said, he doesn’t have a magic wand. Success will depend on how well his administration balances deregulation with maintaining a fair and competitive market.

Nazar:
Just this: Confidence is the lifeblood of any market, especially commercial real estate. The Trump Administration’s pro-business stance is giving investors that confidence. If the Federal Reserve complements that with smart rate adjustments, we’re looking at a very dynamic period for real estate.

Leo:
Thanks for your insights, Nazar. It’s always a pleasure speaking with you.

Nazar:
Likewise, Leo. Thanks for having me.

New York, NY (December 4, 2024) – Jacobs P.C., a boutique business litigation law firm, has filed a lender liability complaint on behalf of the Chen family and their entities, seeking to recover $106 million in damages from Shanghai Commercial Bank Ltd., New York Branch, and Shanghai Commercial & Savings Bank Ltd.

Jacobs P.C. Files $106 Million Lender Liability Action Against 
Shanghai Commercial Bank Ltd.

New York, NY (December 4, 2024) – Jacobs P.C., a boutique business litigation law firm, has filed a lender liability complaint on behalf of the Chen family and their entities, seeking to recover $106 million in damages from Shanghai Commercial Bank Ltd., New York Branch, and Shanghai Commercial & Savings Bank Ltd. The lawsuit alleges fraud, breach of contract, breach of fiduciary duty, economic duress, tortious interference with contract, and additional claims stemming from the banks' handling of loans tied to a development project and personal property of the Chen family.

The complaint outlines allegations that the banks coerced the Chen family into mortgaging a second property, which serves as both their family home and a cultural center, and mismanaged construction loans by withholding agreed-upon funds, forcing the family to cover expenses and endure project delays. Furthermore, the banks pressured the Chens to engage related parties as contractors and mezzanine lenders, imposed exorbitant fees, and demanded reimbursement for unreasonable legal costs during loan extensions.

These practices, the lawsuit asserts, resulted in the loss of the Chen family’s investment in the development project and put both properties at risk of foreclosure.

“The Chen family’s case underscores the devastating effects of unlawful lending practices, and we are committed to holding the banks accountable for their actions,” said Leo Jacobs, Founder of Jacobs P.C. “This lawsuit is not only about seeking justice for the Chens but also about sending a clear message that such practices will not go unchecked.”

Jacobs P.C. remains steadfast in its commitment to advocating for clients facing complex financial and legal challenges, ensuring their rights are protected and their voices are heard.

Amy Rossetti 
R[AR]E Public Relations 
amy@rarepublicrelations.com 
310.779.6025

Always consult with legal experts. If you have any concerns or questions, please contact us today to speak with one of our expert business law attorneys.

Innovating Office in Distress: Strategies for Managing Office Space Challenges. Interview Leo Jacobs and Eric Brody at the South Floria Real Estate Forum

Recently, the innovation stage hosted a riveting discussion with Mr. Leo Jacobs, one of the nation's leading experts in bankruptcy and workout counsel. The session, aptly titled Innovating Office in Distress, was a masterclass in navigating the pressures that arise in challenging financial times, particularly in the office space sector.

Understanding the Nature of Office Space Distress

Office distress is more than just financial strain. It's the compounded weight of emotional, operational, and strategic challenges. Leo Jacobs emphasized that addressing this begins with a shift in perspective: it’s not about perfunctory fixes like better coffee or yoga sessions but about confronting the hard truths of documentation, negotiation, and strategic planning.

The Role of Proactive Paperwork Management

Many developers and business owners overlook their loan documentation until it’s too late. Jacobs explained that this complacency often stems from three main barriers:

Denial: Not wanting to face potential issues.

Ignorance: Lacking knowledge of how to approach the problem.

Inaction: Being unsure how to proceed once the issue is recognized.

These barriers can lead to high-pressure situations where lenders exert undue influence. Jacobs stressed the importance of understanding your paperwork and seeking expert counsel early to level the playing field.

In negotiations, particularly with lenders, the ability to assertively say “no” is crucial. Jacobs highlighted that saying no isn’t about hostility but about signaling readiness and competence. It establishes a foundation for meaningful negotiations, where both sides can collaboratively address the real issue—the problem itself, not the people involved.

Strategic Aggression: A Necessary Posture

Jacobs introduced the concept of strategic aggression, which is about demonstrating your capacity to defend your position without necessarily engaging in conflict. This approach can compel lenders to reconsider their stance, knowing they’re dealing with a sharp, well-prepared party.

Avoid signing any documents presented by the lender without thorough review.

Recognize that pre-negotiation letters often signal terms not initially agreed upon.

Understand the legacy implications of decisions—bad deals can reverberate across generations.

Jacobs underscored the importance of having the right counsel during times of distress. The lawyer who structured your deal may not be the best choice to renegotiate under duress. Instead, seek professionals who approach the situation with fresh eyes and a wartime mindset—individuals equipped to challenge and renegotiate terms effectively.

Ultimately, the session was a reminder to act with foresight and intention. Whether you're refinancing, negotiating with lenders, or simply ensuring your office space remains a viable asset, proactive strategies and expert counsel are indispensable.

As Jacobs put it, “The problem is the problem.” With this mindset, stakeholders can shift from adversarial battles to solution-oriented discussions, ensuring better outcomes for all involved.

For businesses navigating distress, these insights provide a roadmap to not only survive but innovate through challenging times. 

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 Jacobs P.C., a boutique business litigation law firm, is proud to announce its recognition in the 2024 Chambers USA Rankings, earning rankings in both the Commercial Litigation and Bankruptcy/Restructuring categories.

Press Release: Jacobs PC Earns Double Ranking in Chambers USA for 
Commercial Litigation and Bankruptcy

NEW YORK, NY (November 24, 2024) — Jacobs P.C., a boutique business litigation law firm, is proud to announce its recognition in the 2024 Chambers USA Rankings, earning rankings in both the Commercial Litigation and Bankruptcy/Restructuring categories.

This prestigious acknowledgment highlights Jacobs P.C.’s unwavering commitment to delivering strategic, client-focused legal solutions in high-stakes cases. Chambers USA is renowned for its rigorous assessment process, evaluating law firms based on client feedback, legal excellence and market presence.

“This honor from Chambers USA is a testament to the dedication and skill of our entire team,” said Leo Jacobs, Founder of Jacobs PC. “Our rankings in these two critical areas reaffirm our mission to provide assertive, innovative advocacy that empowers our clients to achieve their business goals.”

The firm’s recognition in the Commercial Litigation category underscores its success in representing businesses and high-net-worth individuals in complex disputes, including real estate conflicts, partnership issues, and white-collar criminal matters. Its ranking in Bankruptcy/Restructuring reflects the firm’s deep expertise in navigating intricate bankruptcy proceedings, leveraging creative solutions to deliver results for both creditors and debtors.

Jacobs P.C.’s approach combines swift, results-oriented strategies with a collaborative, client-first philosophy. The firm continues to push boundaries in both litigation and bankruptcy, solidifying its reputation as a leader in the legal industry.

Jacobs P.C. announced today that it has successfully filed a comprehensive response on behalf of SIG CRE 2023 Venture LLC, Rialto Capital Advisors, LLC, and Quantum Servicing Corporation in a declaratory judgment action brought by multiple borrowers over loan extensions originally issued by Signature Bank.

Press Release: Jacobs P.C. Successfully Defends Borrower in Dispute Over Loan Extensions

New York, NY (November 18, 2024) – Jacobs P.C. announced today that it has successfully filed a comprehensive response on behalf of SIG CRE 2023 Venture LLC, Rialto Capital Advisors, LLC, and Quantum Servicing Corporation in a declaratory judgment action brought by multiple borrowers over loan extensions originally issued by Signature Bank.

The plaintiffs, who entered into five-year loan agreements with Signature Bank prior to its closure in 2023, allege that the defendants engaged in improper practices to hinder their ability to extend their loans under the agreements' automatic renewal terms. Signature Bank's loan documents provided borrowers the unilateral right to extend loans for an additional five years by giving written notice 60 to 90 days before the original maturity date, subject to narrowly defined conditions under which the lender could decline the extension. 

Following the FDIC’s takeover of Signature Bank, these loans were transferred to the defendants for servicing. The plaintiffs claim the defendants improperly imposed additional conditions not stipulated in the original agreements to block extensions. These conditions allegedly included legal fees, pre-negotiation agreements, and appraisals, among others. 

Jacobs P.C.’s response highlights the defendants' adherence to legal and procedural obligations during the transition of Signature Bank’s loan portfolio to its new administrators. The firm contends that the alleged actions were lawful and within the scope of the defendants' rights under the loan agreements. Jacobs P.C. further asserts that the defendants acted in good faith and maintained consistent communication with the plaintiffs regarding their obligations. 

“The case raises important questions about how loan servicing transitions are handled following the failure of a financial institution,” said Leo Jacobs, Founder of Jacobs P.C. “Our clients acted in compliance with the terms of the agreements they inherited and in the best interest of ensuring sound financial practices.” 

Jacobs P.C. is committed to achieving a fair resolution of this matter and looks forward to presenting its clients' case in court.

The Real Deal South Florida Forum, held at Mana Wynwood, gathered over 6,000 real estate professionals and 120 exhibitors for two days of networking and celebration of South Florida’s real estate market.

Photo Nov 06 2024, 1 46 01 PM-min.jpg

The TRD South Florida Forum: Unmissable, Unstoppable, Unforgettable!

The Real Deal South Florida Forum, held last week at Mana Wynwood, is the event where the magic happened. Forget the typical real estate conference—this was two action-packed days where deals were made, partnerships bloomed, and industry leaders came together to reimagine the future. Here, the biggest names in real estate gathered to exchange insights, network, and fuel their business success. This year, TRD South Florida Forum took it up a notch, with two massive halls dedicated to empowering the industry and celebrating the region’s vibrant market!

The lineup was nothing short of phenomenal! 

Patrons dove into topics that matter most in Real Estate, like the ever-evolving Brickell market, the sustainability of Miami’s office and tech scene, and the influence of luxury brands in condo and hospitality. For brokers and agents ready to supercharge their skills, there were exclusive workshops focused on harnessing AI to streamline workflows and boost productivity.

But the real excitement was on the Expo floor, where over 120 top-tier sponsors and exhibitors brought the future of real estate to life. Interactive exhibits, stunning project showcases, and cutting-edge services—where industry giants met, including the unstoppable team from Jacobs P.C. Known for their high-impact presence, Jacobs P.C. didn’t just sponsor the event—they owned it! Their must-attend panel, "Innovating Office Distress," featured the visionary Founder Leo Jacobs and Senior Partner Jacob Frydman, who shared powerful strategies for tackling today’s office real estate challenges. This session sparked invaluable conversations and left attendees buzzing with new ideas.

Jacobs P.C. kept the momentum going with an exclusive after-party that truly captured the spirit of South Florida’s elite. This wasn’t just an after-party; it was a networking haven, blending connection, collaboration, and entertainment in the perfect atmosphere. Jacobs P.C.’s commitment to fostering community shone through every detail, from the lively conversations to the unforgettable connections that were made. By night’s end, it was clear: Jacobs P.C. is a powerhouse in the Commercial Real Estate market. At TRD South Florida Forum, the energy was electric, the networking was invaluable, and the opportunities were endless. From all of us at Jacobs P.C., Thank you to all that attended!

South Florida's Real Estate Forum Sponsored by Jacobs PC

South Florida's Biggest Real Estate Event Sponsored by Jacobs PC

 Our team of legal and real estate experts, led by Leo Jacobs, is heading to Miami for the industry’s biggest event of late 2024. Now expanded to two full days at Mana Wynwood on November 6-7th, this event will host 6,000 attendees and over 100 exhibitors. Expect two days of learning, networking, and celebrating the South Florida market. This year, both the Main Stage and Innovation Stage return, gathering top leaders in development, finance, brokerage, and policy who are shaping the future of South Florida’s urban landscape.

November 6-7, 2024

The South Florida Real Estate event is just around the corner!

On the first day of the event, at 1:30 PM EST on the Innovation Stage, Leo Jacobs will deliver an insightful presentation titled “Innovating Office in Distress.” This session will examine how economic shifts, hybrid work trends, and rising interest rates are creating unprecedented challenges for office spaces, particularly in South Florida. The discussion will also cover strategies to meet evolving tenant needs, such as flexible and wellness-focused spaces, and explore office-to-residential conversions, smart technology integration, and innovative financial solutions like preferred equity and alternative financing.

Additionally, the session will address regulatory hurdles, share case studies of successful repositioning, and discuss future trends, encouraging a proactive, creative approach to transforming distressed office spaces into vibrant, profitable assets aligned with modern living and working preferences.

To learn more about the benefits of attending this important event, visit: South Florida Real Estate Forum | The Real Deal 

Congratulations to Leo Jacobs for winning the Bankruptcy Attorney of the Year at this year's Real Estate Development Awards. This award highlights his outstanding achievement in the real estate industry.

 Celebrating excellence in the real estate industry!

Celebrating Excellence in Real Estate Development: Recognizing Outstanding Achievements In the dynamic world of real estate development, where innovation and expertise intersect, we are delighted to share the exciting news of the recent Real Estate Development Awards. This prestigious event brought together industry leaders to honor those who have made significant contributions to the field.

Leo Jacobs awarded Bankruptcy Attorney of the Year at this year's Real Estate Development Awards

At the forefront of this event was Leo Jacobs, a distinguished professional focusing on the bankruptcy industry, whose expertise and vision have made a profound impact on the real estate sector. His outstanding achievement in the real estate industry has led him to be nominated and awarded as Bankruptcy Attorney of the Year at this year's RED Awards. Coordinated by the talented Selman Yalcin, the awards ceremony highlighted the outstanding achievements of individuals who are shaping the future of real estate development. Joining Leo Jacobs in the spotlight were other esteemed award winners, including Lev Mavashev, Thomas Donovan, Eric Brody, Christopher Okada, and Chany Roaen. Each of these individuals has demonstrated excellence in their respective areas, reflecting the diversity and innovation present in the real estate industry. 

Congratulations to all the deserving winners! Your dedication to excellence and your commitment to pushing the boundaries of real estate development are truly commendable. The Real Estate Development Awards serve as a testament to the passion and talent that drive our industry forward. As we celebrate these achievements, let us be inspired to continue fostering creativity and innovation in the real estate industry. Together, we can create a future where bold ideas and visionary leadership define success in the ever-evolving world of real estate. Stay connected for more updates and insights from the real estate industry. #RealEstate #Awards #Success 

Leo Jacobs, the founder of the boutique law firm Jacobs P.C., is one of New York City’s most prominent commercial litigation and bankruptcy attorneys. He’s a quick-witted, brutally honest, no-nonsense straight shooter. 

 Meet the Legal “Psychiatrist” to New York’s Billionaire Real Estate Developers 

 Leo Jacobs, the founder of the boutique law firm Jacobs P.C., is one of New York City’s most prominent commercial litigation and bankruptcy attorneys. He’s a quick-witted, brutally honest, no-nonsense straight shooter. But Leo’s secret to success not only lies in his ability to navigate the treacherous waters of in and out of court restructuring of NYC’s toughest debt and equity real estate deals– it is his wholehearted, holistic dedication to his clients mental health that is unprecedented in the cutthroat streets of the Big Apple. 

Some call Leo the Debtors’ psychiatrist*; the distressed real estate surgeon. In any case, he can patch together broken deals, shattered mindsets and propel the down-and-out to victory after a dramatic fall. 

“It is not only about putting clients in a better financial position,” Leo told Impact Wealth Magazine. “It is about harvesting and nurturing them, giving them my undivided attention, and getting them into a much better mental and physical state. I sell the dream to get back onto the top of the mountain no matter how tough it is. It is a Rocky movie; it is a story of second chances.” 

However, Leo’s rise into a gold-trimmed penthouse office inside Manhattan’s storied Fuller building on “Billionaire’s Row,” aka Madison Avenue, hardly materialized overnight. The mid-thirties lawyer grew up in Queens. His rise centered on representing his Bukharian Community in their share of prominent high-profile real estate, partnership, and commercial disputes. 

Yet he sees his practice now as much more than wheeling, dealing, and advocating. It is holding the hand of those caught in the throes of some of the darkest points of their life; it is talking the billionaire who lost everything down from the ledge; it is holding the hand of the tough-talking big-wig gripped by panic attacks; and it is literally saving the life of the stoic developer drinking himself to death. Ultimately, Leo is the attorney and life advisor offering a hand to those quietly suffering in a world that is hardly sympathetic or understanding of those who fall from grace in the brash and hard-line driven NYC real estate world. 

“Nobody is talking about it, but I am going to because this is how these debtors, developers feel. The majority of them are men, and they are suffering from their past business decisions ,” Leo continued. “No billionaire will ever admit to the suicidal thoughts they encounter day after day; the emptiness they feel when everything around them they shaped is taken from them that which they grew from nothing to something.” 

For Leo, working with so many who seem to have it all but are drowning inside serves as a searing reminder that we don’t know what anyone is going through behind closed doors. And bringing a client back from the brink is a skill he has honed and perfected over the years. As a coach, confidant, and consigliere to some of New York’s most influential real estate players Leo focuses foremost on determining a client’s “motivations.” 

“First, you have to understand what motivates the client. Each client is motivated by different things. Some are motivated by God. Some are motivated by women. Some are motivated by ego, or their families or by the embarrassment (of failure),” Leo explained. “So, the key for me is to flip his or her negative attitude and figure out their motivations for getting back up on that mountain. And sometimes I have to reroute their motivation because their motivation is fueled by negative emotions.” 

The game used to be to get the client from 0 to 1. Now the game is to get the client from -1 to 0 and then back to 1. That extra step is the difference in Leo Jacobs craft the developers and debtors now seek. He is a wartime general. The biggest and boldest real estate players of New York City are experiencing that war with high interest rates, changing laws, and pressure from shareholders to deliver more in these times. 

"I sell the dream to get back onto the top of the mountain no matter how tough it is. It is a Rocky movie; it is a story of second chances. "

For one, Real Estate magnate Abraham Leifer, the founder and CEO of Aview Equities and Leifer Equities, informed Impact Wealth that the post-COVID era had propelled him into exceedingly challenging and unfamiliar terrain, where he would feel adrift without Leo's guidance. 

“It’s much more, much better than just having a lawyer. Leo is the person who makes sure I know that I am not alone and that will be okay,” Abraham said. “He takes a call at any time of the night, but most importantly, he is a great listener who comes up with expedient solutions to complex problems in a simple way.” And no matter the season, there is hardly a lull in Leo’s flow. 

Part of his day may be spent propelling the aggressor away from the prey that is plagued by 8-figure civil judgments, helping a client find the right therapist to help with mental strengthening before the legal process can commence, and calming another one down with a long phone call that stretches into the early hours of the morning. Then, of course, there is working with debtors, developers, investors, and guarantors on in-court and out-of-court restructuring processes, bankruptcy, and modification for loans with CMBS lenders and private money managers. Leo routinely emphasized that he is “nothing without” his bankruptcy and commercial litigation team, pointing out that JPC advises fiduciaries, shareholders, and partners (General and Limited Partners) on fiduciary disputes. Moreover, the firm is renowned for its speedy work in the commercial litigation sector, where they focus on garnering preliminary relief quicker than what can be achieved in the drawn-out court system. 

Leo’s firm filed the last bankruptcy of 2023 (a $65MM fashion footwear chapter 11 bankruptcy) and the first Southern District of New York Single Asset Real Estate Bankruptcy of 2024, a case valued at $100Mm. 

“Our secret sauce is negotiation (tact), arbitration (privately settle disputes), mediation (create a meeting of the minds) coupled with speed at execution. Instead of fighting against the adversaries, we make our adversaries our counterparties who work together to solve the common problem of their client and our client. We make our adversaries understand our client’s position, or we make them understand their client’s position better than even they understand their clients position,” Leo stressed. 

In life’s spare moments, Leo devotes himself to non-profit and community service, including hours of pro Bono representation to the Bukharian Jewish People and an avid supporter of AIPAC. He acts as the attorney to theBukharian Community and the President of the Bukharian Law Association, a 150 member member organization bettering the lives of Bukharian college graduates seeking to go to law school through educational tools and the lives of law students and lawyers through continuous education and committee meetings on community issues such as housing, drugs and local safety. 

“Hashem, family, community, friendship and self-love,” Leo added, shedding light on the pillars he lives by. “When you break bones in your body, those bones heal back stronger. And that is the goal with my clients. We don’t always get second chances in life. But I bring the underdog back. I give debtors and developers a second chance, a second wind.” 

*Leo Jacobs is a New York Admitted Attorney and Counselor at law, not a psychiatrist. 

An effective tool in a New York business owner’s toolkit is the pre-negotiation letter. Here, we explore the pros/cons of signing a pre-negotiation letter.

Pros and Cons of Signing a Pre-Negotiation Letter

Untangling this Option for New York Business Owners

In the dynamic landscape of New York business, the complexity of deal-making and dispute resolution often requires preemptive strategic moves. An effective tool in a New York business owner’s toolkit is the pre-negotiation letter. 

What does this involve? It allows parties to decide to outline their positions and intentions through this formal correspondence—before diving into a full-fledged negotiation or dispute resolution. As a New York business owner, should this be something you consider? In this article, we explore the advantages and potential pitfalls of signing a pre-negotiation letter.

Benefits of Signing a Pre-Negotiation Letter

There are a number of benefits of entering into a pre-negotiation letter agreement. It’s important for New York business owners to understand not all of these advantages may apply to them. The best course of action is to consult with an experienced New York law firm, as attorneys can assess a business’s particular scenario and goals.

One of the most evident benefits is the structured framework a pre-negotiation letter offers. Instead of stepping into a negotiation room with abstract ideas or apprehensions, both parties have a clear idea of what to expect. This structure is especially beneficial for intricate deals or disputes where details can be overwhelming. With an initial roadmap, the negotiation process can be considerably more streamlined and purposeful.

In the business world, verbal agreements or informal exchanges can lead to misunderstandings and complications. Having a written record of initial positions can be a lifesaver in such scenarios. If disagreements arise later or if parties need to revisit previous points of contention, this document serves as an impartial and unchanged record.

Time is a valuable commodity in business; some might say the most valuable one. Extended negotiations not only consume time but also resources and energy. By clarifying positions at the outset, a pre-negotiation letter agreement can lead to quicker consensus, benefiting all involved parties.

Forewarned is forearmed. Knowing the stance of the opposing party beforehand can be instrumental in crafting compelling arguments, anticipating counter-responses, and refining one's strategy. Instead of reactive negotiations, parties can proactively address concerns, leading to more constructive discussions.

Risks of Signing a Pre-Negotiation Letter

Like just about anything in life and business, there are two sides to every story. In this section, we break down some of the detriments of entering into a pre-negotiation letter agreement.

Negotiations often require adaptability. While a pre-negotiation letter sets the stage, it can sometimes be a double-edged sword. Once a stance is documented, deviating from it or employing a different strategy might be seen as inauthentic or insincere, hampering the trust-building process. So, determining the importance of flexibility in your negotiations is a critical element you should assess with your attorney

Every strategy has vulnerabilities. By revealing your position early, you might inadvertently show your hand, giving the other party insights into potential weak points that they can exploit during negotiations. This is where an experienced New York attorney who is skilled at navigating pre-negotiation letters can help you determine if a pre-negotiation letter protects you from exposing your vulnerabilities, or where doing so actually helps your case.

The legal dimension of pre-negotiation letters cannot be ignored. A hastily or improperly drafted letter can lead to unintended commitments. In the absence of clear disclaimers or protective clauses, what was intended as a preliminary discussion tool might evolve into a binding agreement, leading to unforeseen liabilities. Again, a knowledgeable attorney can guide business owners through the risks and how to avoid them.

Protection can come at a price. Ensuring that the pre-negotiation letter is thorough, accurate, legally sound, and works to your advantage,  can require significant investment in terms of time and potentially legal consultation. Especially for smaller New York businesses or less significant deals, this cost might outweigh the benefits, unless you’re working with a firm that can handle the task quickly and efficiently.

Weighing the Pros and Cons of a Pre-Negotiation Letter Agreement

Like any strategic tool, the value of a pre-negotiation letter lies in its judicious use. For New York business owners, understanding the nuances, benefits, and potential drawbacks is crucial. It’s not about avoiding or embracing this approach universally but rather discerning when it can be a game-changer and when it might be a misstep.

If you’re facing any legal issue, whether commercial litigation, bankruptcy, or real estate bankruptcy, our expert attorneys can help. Contact us today to arrange for a consultation.

Jacob Frydman said in the lawsuit filed Friday in New York County Supreme Court that Herrick blew a key deadline against his former business partner, leading to a lackluster jury verdict in what should have been a billion-dollar-plus case.

NY real estate developer wants $1.1 bln from law firm over blown deadline

May 8 (Reuters) - A real estate developer has filed a $1.1 billion legal malpractice lawsuit against New York law firm Herrick Feinstein, alleging that the firm bungled his case and that one of its attorneys lied to two federal judges to cover up his mistake.

Herrick and its partner Arthur Jakoby, who was also named as a defendant, said in a statement that the claims "completely lack merit" and that the firm "has a substantial unpaid legal fee claim against Mr. Frydman."

Leo Jacobs, whose law firm is representing Frydman in the lawsuit, said if "there are any sums due, please provide an invoice and I am sure it will be taken care of promptly."

Frydman had alleged in a 2014 lawsuit that his former business partner Eli Verschleiser conspired with others to hijack the email servers of his company, United Realty Partners, and unlawfully accessed his email account. Frydman also alleged Verschleiser engaged in an anonymous, online smear campaign against him.

Frydman claimed he suffered nearly $380 million in compensatory damages. But lawyers at Herrick told a damages expert and others that their deadlines to submit reports in the case were in January 2017 when they were actually due in December 2016, the lawsuit said.

After the deadline passed, Jakoby fabricated an agreement that falsely made it seem as if Verschleiser's lawyers agreed to an extension, and then submitted deceptive filings to U.S. Magistrate Judge James Cott and U.S. District Judge John Koeltl about the matter, Frydman alleges.

"In sum, Herrick and Jakoby blew a clear and unambiguous court-ordered deadline, and then lied to not one, but two federal judges to cover up their malpractice," the lawsuit said.

Koeltl excluded the damages report in a March 2017 ruling, finding Frydman and his lawyers had no excuse for missing the "unambiguous deadline for expert disclosure." A federal jury eventually sided with Frydman in his lawsuit against Verschleiser and others, awarding him more than $2.1 million.

"But for Herrick’s and Jakoby’s malpractice, plaintiffs would have recovered punitive damages of $1.139 billion or more," the lawsuit said.

Verschleiser, who is not a party to the legal malpractice suit, is seeking to overturn the jury's decision. His attorneys did not immediately respond to a request for comment.

The case is Jacob Frydman, et al., v. Herrick, Feinstein LLP, et al., New York County Supreme Court, Index No. 150679/2023

For Jacob Frydman, Prime United Holdings LLC and United Realty Advisors LP: Ilevu Yakubov (Leo Jacobs), Lewis Fischbein and Adam Sherman of Jacobs PC, and Casey Coyle of Babst, Calland, Clements, and Zomnir PC

For Herrick, Feinstein and Arthur Jakoby: Anthony Sylvester of Sherman Atlas Sylvester & Stamelman

Bankruptcy

Our team at Jacobs P.C. fits the legal strategy to the problem, not the other way around.

But in some cases, if elected wisely, bankruptcy can be the most advantageous and flexible option for your business, offering the best chance for financial rehabilitation and future commercial success.

By being a few steps ahead and knowing how to leverage the possibilities, we drive business solutions through whatever means best serves our clients’ needs.

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