Tuesday, May 29, 2007

Tishman Lehman JV looking at Archstone

Funny how things change...just a few years ago, in order to stay under the limit of having to draft something called a "substantive non-consolidation opinion" in the CMBS market, deals generally had to be under $40 million. (If you don't know what this is, you probably don't want to know. Suffice it to say it is a complicated, reasoned legal opinion relating to bankruptcy and whether the insolvency of one entity will cause a bankruptcy court to consolidate other entities into the bankruptcy.) That is what I called the "big deal" threshold.

Now we are seeing yet another possible 11-digit deal. At this rate, anything under $1 billion will be a small deal in a few years. Have fun, everyone!