Overview

Restructuring discussions in real estate PF tend to be framed as binary outcomes. The more useful frame is risk reallocation across capital tiers — and the implications for each tier are distinct.

Reframing restructuring

Reallocation, not crisis. Senior, mezz, and equity each carry different optionality through workout.

Senior position

Collateral hierarchy and lien priority remain the anchor.

Mezzanine position

Negotiation leverage depends on standstill terms and refinancing path.

Equity outcome

Often partial recovery via vehicle recapitalization; dilution structure matters more than headline outcome.