Last night, Kluger Kaplan accepted the Daily Business Review’s award for the Top Real Estate Litigation Firm in South Florida. Many of our attorneys attended the awards dinner at the Four Seasons. Managing Member, Alan Kluger, accepted the award on behalf of the firm. ”We are humbled to be honored with firms of this caliber,” said Kluger. “Litigators in this community are at the forefront of social change and community service and we are proud to be a part of this esteemed group.”
“We are thrilled to be chosen for such an honor,” said Founding Partner, Alan Kluger, “Kluger Kaplan has built a significant practice both locally and nationally handling a variety of complex real estate litigation matters.”
The firm will be honored at an awards ceremony on April 17 at The Four Seasons.
Over the last two or three years, I have encountered scenarios where the traditional rule – that a relationship between a lender and borrower is an arm’s length transaction – is called into question and creates potential lender liability.
- 1) As real estate development in Florida has grown, developers have increasingly obtained construction loans tied to the value of the property being developed, called “loan-to-value” loans. In these types of loan transactions, the bank lends the developer money up to a certain percentage of the value of property being developed, based upon a formula that is set forth in the loan agreement. As development continues, the value of the property increases by virtue of the improvements to the land and the builder is able to borrow more money based upon the increased value. However, the borrower must also maintain certain debt-to-value ratios or risk triggering a default under the loan agreement. The bank has significant control over the success of the project because its valuations of the project determine how much money the developer can draw at any given time and determines whether the borrower is maintaining a proper loan-to-value ratio. Because lenders have such significant control, it is important that they fairly and accurately value the property. When banks improperly value the property or take actions that negatively impact the value of the property, they can sabotage – even unintentionally – the entire development project and expose themselves to potential lender liability.
Kluger Kaplan recently sponsored the annual Israel Bonds Corporate Leadership Dinner, which honored Miami real estate developer Tibor Hollo and his wife, Sheila. The event took place on November 15, 2012 at the Fontainebleau Hotel in Miami Beach. Kluger Kaplan associate Josh Rubens introduced the guest speaker, Pinchas Landau, one of Israel’s leading independent analysts on Israeli economic and financial affairs.
“Kluger Kaplan enjoys participating in community events such as the Israel Bonds Leadership Dinner,” said Rubens. ”We are very supportive of our local community as well as national and international causes. The South Florida community helped Israel Bonds sell over $11 million in bonds at this one event.”
Israel Bonds are debt securities issued by the State of Israel. Proceeds from the sale of Israel Bonds are used for Israeli economic and infrastructure development.
Congratulations to Founding Members Alan Kluger, Abbey Kaplan, Bruce Katzen, Steve Silverman and Philippe Lieberman and to attorney Terri Meyers, who were selected by Best Lawyers in America 2013 to be among the top legal practitioners in their practice areas:
Alan Kluger - Commercial Litigation / Litigation: Banking & Finance / Litigation: Real Estate
Abbey Kaplan - Commercial Litigation / Entertainment Law / Litigation: Mergers & Acquisitions / Litigation: Real Estate
Bruce Katzen – Securities, Capital Markets Law
Steve Silverman – Commercial Litigation
Philippe Lieberman – Commercial Litigation
Terri Meyers – Intellectual Property