In this video, Steven Morris, partner at Quantum Law Group, explains how the firm assists real estate developers and hotel owners with troubled projects. When developments lose value and the property becomes worth less than the loans against it, both the developer and the lender face serious financial risk.
This scenario has been especially common in the hospitality industry, where hotels and other hospitality projects have suffered significant decreases in value. Developers risk losing everything, while lenders risk being left with properties they do not want to manage or sell at distressed prices.
Quantum Law Group works to create solutions that protect both sides. By bringing together hotel developers and lenders, the firm negotiates strategies that preserve the developer’s role in managing the property while maximizing the lender’s return. The result is a cooperative approach that maintains value, keeps projects alive, and prevents costly litigation.
Key strategies for troubled real estate projects
— Negotiating loan workouts between developers and lenders
— Preserving the developer’s management role in the project
— Structuring agreements that allow developers to retain an interest in the property
— Maximizing potential returns for lenders under distressed circumstances
— Preventing unnecessary litigation that reduces the overall value of the project
Why this approach works
— Lenders are not in the business of running hotels or hospitality projects
— Developers are best positioned to manage and maintain property value
— Cooperation leads to higher returns than foreclosure or liquidation
— Developers can assure investors they still hold an interest in the project
— Both sides avoid the “lose-lose” outcome of prolonged disputes
How Quantum Law Group helps real estate clients
— Representing developers in loan workouts, refinancing, and restructuring
— Negotiating with lenders to preserve project value and developer interests
— Advising on troubled hospitality, commercial, and residential projects
— Litigating real estate and construction disputes when resolution fails
— Crafting strategies that protect investors, managers, and property owners
About Quantum Law Group
Quantum Law Group is a Los Angeles-based litigation and trial law firm with deep experience in real estate, construction, and commercial disputes. Our attorneys, including partners Steven Morris, Jonathan M. Deer, and Peyman Cohan, bring decades of combined experience resolving high-stakes conflicts and creating value in difficult situations.
We serve clients throughout Southern California, including Los Angeles, Beverly Hills, Santa Monica, Pasadena, Downtown LA, South Bay, and Long Beach.
Practice areas we cover
— Real estate and construction litigation
— Loan workouts and financial restructuring for troubled projects
— Business litigation and partnership disputes
— Insurance coverage and bad faith litigation
— Employment law and workplace cases
— Intellectual property and trade secret disputes
— Mediation, arbitration, and alternative dispute resolution
— Complex trial work requiring experienced litigators