Real Estate Weekly: A law firm for all seasons: Pryor Cashman does it all

The Praedium Group, a real estate investor focusing on underperforming and undervalued assets throughout North America with more than $4 billion in total investments to date, embarked on a strategy in the mid-1990's to acquire multi-family properties in New York City. To implement that strategy Praedium turned to Ronald B. Kremnitzer, a senior real estate partner of Pryor Cashman Sherman & Flynn LLP. In the past seven years Praedium has acquired or has under contract over 250 buildings in New York, with over 10,000 apartments units.

"Besides their legal expertise, the team at Pryor Cashman offers impressive business acumen," said Frank P. Patafio, a principal and chief financial officer of Praedium. "The firm has represented us in multiple investments by our $465 million Praedium Fund V, which invests in mid-cap assets throughout the US and Canada in the $10 to $70 million range."

This example of combining first rate legal skills with business acumen is a hallmark of Pryor Cashman's real estate practice group. Comprised of Kremnitzer, Wayne B. Heicklen, Thomas J. Malmud and 15 other attorneys, the real estate group offers a wide range of services nationally with a New York, New Jersey and Connecticut focus. This includes acquisitions and sales, residential and commercial development, retail and office leasing, financing, cooperative and condominium conversions, litigation, securities and REITs.

"Pryor Cashman as a firm has a strong entrepreneurial culture," said Wayne Heicklen. "Our real estate practice is defined by our ability to act as business advisors, as well as lawyers. We're fully involved in every aspect of the deal process."

In addition to navigating and negotiating challenging transactions for clients, Ron Kremnitzer and Wayne Heicklen, who count among their clients active real estate investors and developers, major regional and national retail chains and high net worth individuals, emphasize the importance of understanding the economics of the deal, as well as putting clients together.

Heicklen recently handled the acquisition and financing of the old Maxwell House Coffee plant on the New Jersey waterfront by Pinnacle Communities and their joint venture partner, Toll Brothers Inc. He is currently active in a number of high rise residential development projects in New York City. According to Heicklen, Pryor Cashman's New Jersey expertise is unique among New York-based law firms--which is gaining the firm attention on both sides of the Hudson.

"We have a lot of experience with New Jersey real estate. We understand New Jersey and it's that knowledge that makes us the best choice for our clients, whether they're based in New York or New Jersey," said Heicklen.

Tom Malmud--who also played a key role in the Maxwell House deal--specializes in acquiring and financing office and residential properties and leisure property development. His clientele includes marquee Manhattan names like Smith & Wollensky and Ben Benson's, as well as national brands like The Bellagio Hotel & Casino and Costco. But, like everyone at Pryor Cashman, he's operating outside his specialty as often as within.

The firm is also a leader in real estate litigation. Joe Epstein is very active in every aspect of such litigation, ranging from complex commercial landlord/tenant disputes to contract disputes and title matters. Todd Soloway, whose core clientele is large commercial and residential owners and developers, has extensive trial experience that is backed up by expertise in development site clearing, environmental issues, tenant buy-out negotiations, condominium and co-op board matters, lease disputes and rent regulations, as well as regulatory compliance.

Pryor Cashman's real estate securities and REIT practice is also an outgrowth of the firm's commitment to entrepreneurial business development.

"During the last REIT boom--from 1993 through 1998--we had the opportunity to build a substantial practice in real estate securities and REITs," said Blake Hornick, a corporate partner with Pryor Cashman and a senior member of the firm's REIT group. "We acted as SEC counsel for Cali Realty when it became a public REIT, as well as led its subsequent combination with the Mack Company. We continue to act as SEC counsel for the resulting company--Mack-Call."