Loans
Litigating Real Estate Finance When the Loan Document Becomes the Battlefield
Real estate loan disputes turn on money, priority, and the promises written into financing documents. When a borrower defaults, a guarantor contests recourse, a construction lender withholds a draw, or a special servicer moves toward foreclosure, the amounts in question often run into the hundreds of millions, and the outcome can reshape the capital structure of an entire asset. Brewer represents lenders, borrowers, guarantors, developers, and investors in the disputes that follow: acceleration and default fights, mezzanine and intercreditor priority battles, recourse-carveout enforcement, and forbearance and workout failures. The Firm steps in when a financing dispute has moved beyond negotiation and the exposure has become consequential.
What separates these matters from ordinary debt collection is the collateral. It is an operating asset whose value can shift while a claim is litigated, so the choice of remedy and the speed of pursuing it often matter as much as the merits. Brewer seeks expedited relief under the summary procedures reserved for instruments for the payment of money only, the appointment of receivers to hold an asset and its income steady while claims are resolved, injunctive relief where a sale is contested, and foreclosure and deficiency recovery. It also brings affirmative lender liability claims where an institution's conduct is alleged to have exceeded its contractual rights. Where the parties stand relative to one another is often as contested as liability, and what the borrowing entity owes is litigated separately from what the parties standing behind it owe. Those battles are fought in state and federal trial courts, in specialized business and commercial divisions, in bankruptcy court when a filing arrives ahead of a scheduled sale, and in arbitration, wherever the loan documents and the borrower's chosen forum place them.
What distinguishes Brewer is an integrated model built for exactly this kind of litigation. Trial lawyers work alongside an in-house Consulting Group of accountants, economists, and investment banking professionals who reconstruct servicing ledgers, test valuations, and quantify damages, and a Public Relations Group that addresses the narrative when a distressed asset becomes public. The Firm is focused on litigation.
Featured Real Estate Loan Matter
Brewer represents institutional lender ACRES Capital in pending litigation arising from the collapse of the Graduate by Hilton Roosevelt Island hotel in New York City. As The Real Deal reported, the Firm's clients, AMF Levered II, LLC and ACRES Real Estate SPE 10, LLC, brought an action in the Commercial Division of the New York State Supreme Court against Graduate Hotels Real Estate Fund III LP, an AJ Capital Partners affiliate that guaranteed the commercial mortgage loan on the property. The hotel closed in November 2025, Cornell University terminated the ground lease, and Brewer filed a Motion for Summary Judgment in Lieu of Complaint seeking more than $79 million. William A. Brewer III has said that AJ Capital "shut down the only hotel on Roosevelt Island, turned Union employees out of work, walked away from its obligations to Cornell University, and attempted to leave its lender holding the bag on almost $80 million." Cornell brought a separate action of its own, and the matter remains pending.
This representation is one dimension of the Firm's broader Real Estate Litigation practice.