Trey Cox is the author of “What to Look for in a Litigation Law Firm: Insights for Junior Lawyers and Law Students” [PDF] published by Texas Lawyer on March 17, 2025.
Jason Mendro, Matt Gregory, and Nick Harper are the authors of “Recent SEC Guidance On Memecoins Suggests Broader Policy Change,” where they discuss how the guidance may foreshadow a reappraisal of the Howey Test, which the SEC has recently used in its attempts to regulate cryptocurrencies through litigation.
Read the full article on CoinDesk.
Jake Shields, Michael Dziuban and Danilo Risteski are the authors of “Assessing PE Risk After Mass. False Claims Act Amendments” [PDF] published by Law360 on February 28, 2025.
Michael Diamant and Pedro Soto are the authors of “Common pitfalls in MDB audits and charting a path to effective settlement of allegations” [PDF] published by the Global Investigations Review on February 26, 2025.
This article was first published on Global Investigations Review in February 2025; for further in-depth analysis, please visit GIR “The Guide to Multilateral Development Bank Investigations – Edition 1.”
Patrick Stokes and Katharina Humphrey are the authors, together with Annabel Dornauer, of “Ende des Foreign Corrupt Practices Act? Wie sich die Executive Order von US-Präsident Trump auswirkt“ (The End of the Foreign Corrupt Practices Act? The Impact of U.S. President Trump’s Executive Order), published by Börsen-Zeitung on February 14, 2025.
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Tory Lauterbach, Janine Durand and Jess Rollinson are the authors of “Trump’s Energy Plans: Climate, Data Centers, LNG And More” [PDF] published by Law360 on February 6, 2025.
Tory Lauterbach, Janine Durand and Jess Rollinson are the authors of “Trump’s Energy Plans: Funding, Permits And Nuclear Power” [PDF] published by Law360 on February 5, 2025.
Jordan Estes is the author of “Engaging With Feds On Threats To Executives, Employees” [PDF] published by Law360 on February 5, 2025.
Kristen Limarzi, Andrew Cline, Ryan Foley, Tristan Locke and Graham Valenta are the authors of “Gibson Dunn Discusses Record Gun Jumping Penalty Securedby FTC” [PDF] published by The CLS Blue Sky Blog on January 31, 2025.
Stephanie Brooker, Kevin Bettsteller, David Ware, Sam Raymond and Connor Mui are the authors of “Gibson Dunn Discusses Supreme Court Ruling on Beneficial Ownership Information Reporting” [PDF] published by The CLS Blue Sky Blog on February 3, 2025.
Josiah Bethards, Michael Cannon, Matt Donnelly and Alissa Fromkin Freltz are the authors of “Lessons From the First Years of Tax Credit Transfers” [PDF] published by Tax Notes Federal on January 27, 2025.
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Krystyna M. Blakeslee is a partner in the New York office of Gibson, Dunn & Crutcher and a member of the Real Estate Department where she focuses on commercial real estate finance and investment.
Krystyna has led some of the country’s largest and most high-profile commercial real estate transactions in recent years. She concentrates on the origination, acquisition and disposition (including securitization and syndication) of mortgage loans, mezzanine financings, preferred equity, bridge loans and corporate debt. In addition, Krystyna has extensive experience in restructures and workouts, as well as the exercise of remedies (including, in connection with acquiring assets in bankruptcy). She is also experienced in handling joint venture investments and acquisitions of real estate assets, including hotels, and advises funds in connection with their investment and financing activities in real estate.
Q1: What do you think the top lessons learned are from 2024, and as we start 2025, are you optimistic?
Blakeslee: One of the key lessons from 2024 involves the importance of honest property valuations. We’ve seen the market start to accept realistic valuations, which has been instrumental in unlocking more deal activity. I’m cautiously optimistic about 2025. A more favorable regulatory environment could encourage dealmaking, but we must remain vigilant about inflation. If inflation picks up again, it could pose a significant challenge.
Q2: What are your projections for this year? What is needed to increase deal volume?
Blakeslee: Multifamily and industrial sectors will remain the safest bets, but competition is intense and driving tighter pricing. The deals available at certain yields are not always of the best quality, which is something investors will need to navigate carefully. Rate stabilization will be key to increasing deal volume.
Additionally, creative financing solutions, such as seller financing and preferred equity, will continue to play a critical role, especially as traditional banks pull back and non-bank lenders and CMBS platforms step in to fill the gap.
Q3: How has the lending landscape shifted over the past year? What are the benefits of CMBS and other finance sources that have made gains coming out of 2024?
Blakeslee: The lending space has seen a significant influx of private market entrants. These lenders have been very innovative, offering flexibility in terms, structures, and asset classes. For example, we’re seeing innovation in mezzanine financing, preferred equity, and even loan purchases instead of originations. Private lenders’ sources of capital, such as insurance funds, allow them to structure deals in ways that traditional banks often cannot.
In the CMBS space, a notable trend from 2024 was the increased influence of B-piece buyers during the origination process. By addressing potential issues upfront, B-piece buyers can help improve pricing and reduce the likelihood of problems emerging later. This collaboration is a win-win for the market.
Q4: How can market participants better navigate today’s market and increasingly complex transactional environment?
Blakeslee: Navigating today’s market requires creativity, adaptability, and a willingness to engage in honest conversations about valuations. For example, structuring workouts in a way that reflects current valuations without punishing sponsors can accelerate resolutions. These structures can motivate sponsors to contribute additional capital by offering equity upside, which avoids the pain of taking REO or realizing a loss.
Refinancing risk is another critical area, particularly for office deals. With the shift to shorter fixed-rate loans in recent years, investors now need to consider rollover risks over the next decade. This challenge is compounded by tenant preferences for newer office products and the rising costs of tenant improvements and leasing commissions.
Maintaining liquidity and the ability to pivot quickly are also essential. Creative financing solutions, flexibility in deal structures, and strong sponsorship will continue to be key drivers for success in this increasingly complex environment.
Q5: Are there any additional factors that could influence the market in 2025?
Blakeslee: Insurance will be an important factor, especially in markets vulnerable to natural disasters. Interest rates are another when looking at refinancing risks, so increased deal volume will likely be contingent on rate stabilization.
We’ve also seen that sponsorship remains critical. Workouts from 2024 have shown us who will stand by their properties and who will not. Even strong sponsors may decide to walk away from troubled deals after making good faith efforts to save them. These decisions will impact how deals are structured and resolved this year.
Overall, 2025 will require dynamism, resilience, and a clear-eyed approach to the challenges and opportunities ahead.
Originally Published January 28, 2025 on CommercialObserver.com
Stephen Hammer and Brian Richman are the authors of “SCOTUS Expands Opportunities to Challenge Agency Action in Corner Post” [PDF] published by The Texas Lawbook on January 23, 2025.
Seth Rokosky is the author of “The Unique Skills of the Appellate Litigator” [PDF] publsihed by the New York State Bar Association’s NYLitigator in its December 2024 issue.
Daniel Zygielbaum and Jennifer Fitzgerald are the authors of “Continuation Funds: Tax Issues” [PDF] published by Practical Tax Strategies in its January 2025 issue.
Michael Bopp, Stuart Delery and Matt Gregory are the authors of “5 Transition Tools Trump Could Use To Implement His Agenda” [PDF] published by Law360 on January 9, 2025.
Sameera Kimatrai and Aliya Padhani are the authors of “Navigating the AI Frontier: The Risk and Promise of AI in Financial Services in the Middle East” [PDF] published in the International Fintech Review 2024/25.
Osman Nawaz, Timothy Zimmerman and Michael Ulmer are the authors of “Predicting What’s Next For SEC By Looking At Past Dissents” [PDF] published by Law360 on January 6, 2025.