Alexander S. Vellandi, Esq.
Independent Director Services for Bankruptcy Remote Entities
- Low Fees
- Quick Document Review and Signatures
- No D&O Insurance Required
- Modern Office Equipped to Respond with pdf Documents Via Email
My Services:
As an experienced real estate attorney and professional, I specialize in serving as an independent director/manager for lender required bankruptcy remote entities in the real estate industry. I also have a colleague available to serve as a second independent director/manager for transactions where the lender will require two independent directors/managers.
When serving as your independent director/manager, I provide cost effective and high quality service. Having vast experience in the fast paced real estate industry, I know how important it is to provide lightning speed turnaround of document review and final signatures on all documents relating to closing the transaction.
Additionally, I will serve as an independent manager/director without requiring D&O insurance, when my duties are appropriately restricted to bankruptcy related actions. Eliminating the need for D&O insurance reduces the costs to the investors and streamlines the structure and timing of the transaction.
Getting Started:
My fees are based upon the circumstances of each transaction and the number of entities involved. Prior to serving in the capacity of independent director/manager for your transaction, I will review the special purpose entity’s formation documents to confirm that the duties are limited to bankruptcy related activities. Please contact me as soon as you know you will be getting a loan requiring an independent director/manager so we can discuss fees, structure and timing.
Why Do You Need an Independent Director/Manager:
The use of “Special Purpose Entities” (“SPE”)(often referred to as “bankruptcy remote entities”) have grown in use and importance as a financing requirement for securitized and structured financing (a bankruptcy remote entity will be required for almost all real estate loans over $20 million and many loans over $15 million). The SPE provides a vehicle that can isolate the legal ownership of real estate from the bankruptcy of the principals behind that entity (e.g., the SPE limited liability company that owns the real estate would be isolated from the individual bankruptcy of the shareholders that own the LLC) by requiring that the independent director/manager (commonly referred to as an “independent director” in the real estate lending industry, but most commonly actually defined as an “independent manager” in the entity formation documents for most real estate ownership entities, typically LLC’s) approve of bankruptcy related actions. This bankruptcy remote status is one of the most important elements of the SPE, and clear rating agency guidelines exist on what an SPE must do to maintain this bankruptcy remoteness (mainly, an independent director/manager must approve of any bankruptcy related action, must maintain true independence from the lender and borrower, and act in a fiduciary capacity).
Based upon my real estate experience and business ethic, all lenders in the real estate lending industry should approve of me to serve in the capacity as an independent director/manager for your large transactions.
For your consideration, my full professional bio is below:
ALEXANDER S. VELLANDI, ESQ.
SOPHISTICATED EXPERIENCE… HONEST ADVICE…AFFORDABLE REPRESENTATION
With the experience of over $3 billion in total real estate transactions, Alex Vellandi is in a small fraternity of attorneys nationally with such a background.
Vellandi serves as a lender required independent director for the bankruptcy remote ownership entities of various high value real estate holdings throughout the country, each with a minimum value of $30 million and up to $150 million (currently serving in this capacity for transactions totaling over $1 billion in market value).
Vellandi formerly served as in-house counsel with a real estate investment firm specializing in the management of various REITs, and offering of value-added investments and tenant-in-common products (the largest tenant-in-common investment sponsor in the country). He was responsible for overseeing all real estate related transactions in connection with the acquisition, disposition, financing and management of a portfolio of over $2 billion of commercial real estate throughout the country.
As in-house counsel, Vellandi was the point person for closing on the acquisition of over $1.2 billion of commercial office buildings, including 34 transactions in 13 states. He closed the $113 million acquisition of the Long Beach World Trade Center and a $274.5 million three-building portfolio acquisition in downtown San Diego, which was the largest real estate transaction in San Diego history. The San Diego portfolio consisted of the 30-story Emerald Plaza, 24-story Comerica Bank Building and the 22-story Golden Eagle Plaza and was structured with two separate lenders and two types of buying entities all closing on the same day. The Emerald Plaza piece of the portfolio was acquired on behalf of 33 tenants-in-common and was the 3rd largest tenant-in-common acquisition at the time.
Additionally, Vellandi has served as a real estate lawyer with two of California’s pre-eminent real estate law firms and is currently a solo practitioner. In private practice, he has represented large corporations, developers, landlords, real property purchasers, borrowers and secured lenders on a wide range of real estate related transactions in various states. He has specific experience in purchases and sales, project financing (including secured, unsecured, mezzanine and credit enhancements for private activity bond transactions) and in the leasing and management of industrial buildings, shopping centers and office buildings.
With a B.A. from the University of California at Irvine, Vellandi earned his J.D. from UCLA School of Law. While attending law school, Vellandi earned the American Jurisprudence Awards for Torts and Property Law, and served as a teaching fellow to the legendary late Property Professor Jesse Dukeminier. Prior to entering law school, he served as an appointee of former California Governor Pete Wilson on the bipartisan commission responsible for administering President Clinton's AmeriCorps program. He is a member of the State Bar of California, is a California licensed real estate broker and serves in a leadership capacity for various charities and professional organizations. Vellandi also serves as an arbitrator of disputes for various Associations of Realtors.
Contact Information:
27762 Antonio Pkwy L1, #509
Ladera Ranch, CA 92694
(949) 378-5005 Telephone
(949) 388-4282 Fax
avellandi@independentmanager.com
www.independentmanager.com
