Michael D. Cohen on CMBS Workouts and Commercial Real Estate

Navigating the Hidden World of CMBS and Commercial Real Estate Workouts

Commercial real estate isn't always won by buying the right property.

Sometimes, success comes from understanding the financing behind it.

When loans mature during uncertain markets, interest rates remain elevated, and refinancing becomes difficult, borrowers often discover that navigating the capital structure can be just as challenging as operating the real estate itself.

In this episode of Real Deal, Leo Jacobs sits down with Michael D. Cohen of Bryant Capital Advisors to discuss CMBS loans, loan restructurings, special servicing, and why strategy - not panic - is the key to surviving distressed situations.

From Creating CMBS to Solving Today's Problems

Michael has spent more than three decades working in commercial mortgage-backed securities.

Having helped build the CMBS market during its early years, he now advises borrowers facing some of the industry's most complicated loan situations.

His perspective is unique because he understands every side of the transaction—from lenders and servicers to investors and borrowers.

That experience allows him to guide clients through situations that often appear impossible.

Why CMBS Is Different

Unlike traditional bank loans, CMBS financing introduces multiple stakeholders into every decision.

Master servicers.

Special servicers.

Bondholders.

Controlling class investors.

Each participant has different objectives, making restructurings significantly more complex than negotiating directly with a bank.

For borrowers, understanding this structure is often the difference between preserving value and losing control.

Special Servicing Changes Everything

One of the most important lessons Michael shares is what happens when a loan enters special servicing.

At that point, negotiations become more structured, more expensive, and considerably more challenging.

Borrowers who wait until maturity to seek help often lose valuable negotiating leverage.

Instead, Michael encourages proactive planning months before loan maturity, giving borrowers time to build strategies rather than simply reacting to problems.

Every Deal Has a Different Solution

No two distressed loans are identical.

Some properties need additional time.

Others require new capital.

Some benefit from restructuring debt.

Others need operational improvements before refinancing becomes possible.

Michael explains that successful workouts begin by understanding the property's unique circumstances and presenting lenders with a realistic plan that benefits both sides.

Preparation is often the strongest negotiating tool.

Relationships Create Better Outcomes

Throughout the discussion, one message remains consistent.

Knowledge matters.

Relationships matter even more.

After decades working with lenders, servicers, attorneys, and investors, Michael understands how decisions are actually made behind the scenes.

That network allows him to move conversations forward, resolve issues more efficiently, and help borrowers navigate situations that many would find overwhelming.

The Downers Grove Example

Michael shares the story of a suburban Chicago office portfolio facing loan maturity and declining market conditions.

Rather than accepting the situation, his team worked with legal counsel, servicers, and stakeholders to restructure the transaction, extend the loan, reposition the collateral, and create a path toward stabilization.

The outcome wasn't simply a loan extension.

It was a strategy that gave the borrower time to improve the asset and protect long-term value.

Looking Ahead

Commercial real estate continues to face elevated borrowing costs, slower refinancing activity, and changing market fundamentals.

For many borrowers, the next several years will require flexibility, preparation, and experienced guidance.

The market may remain uncertain, but uncertainty doesn't eliminate opportunity.

With the right strategy, difficult situations can still produce successful outcomes.

The Real Advantage

Markets will always change.

Interest rates will rise and fall.

Capital will become more or less available.

What remains constant is the value of preparation.

Michael's experience demonstrates that the borrowers who succeed aren't necessarily those with the easiest situations—they're the ones who understand the process, build the right team, and approach every challenge with a clear strategy.

Watch Real Deal Podcast 1

🎧 Watch the full episode to hear Michael D. Cohen explain CMBS, special servicing, commercial real estate workouts, and how preparation and relationships help borrowers confront complex financial challenges.

PODCAST - Confronting the Impossible with Leo Jacobs.

Leo Jacobs, Founder and CEO of Jacobs PC

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.

If you would like to join the podcast email requests to pr@jacobspc.com