The following is an excerpt from Practice Perspectives: Vault's Guide to Legal Practice Areas.
Eric Schwitzer is a partner in the Real Estate practice of Paul Hastings and is based in the firm’s New York office. He practices in all areas of commercial real estate transactions, with a primary focus on real estate and real estate-related corporate finance. Mr. Schwitzer represents major financial institutions and private equity funds in connection with complex domestic and international commercial matters, including cross-border corporate credit facilities, capital commitment-backed credit facilities, mortgage and mezzanine loans, preferred equity investments, restructurings, loan sales, and loan workouts.
Gerd S. Alexander is a partner in the Real Estate practice of Paul Hastings and is based in the firm’s New York office. Mr. Alexander represents real estate developers, operators, and investors on a wide range of real estate transactions (including acquisitions, dispositions, joint ventures, and debt financings) in connection with office buildings, hotels, condominiums, self-storage facilities, multi-family properties (including affordable housing), and retail properties.
Describe your practice area and what it entails.
Paul Hastings’ real estate and real estate corporate finance practice handles some of the largest, most complex, and sophisticated matters for some of the largest U.S. and multinational financial institutions and private equity funds. Our vibrant practice handles the full spectrum of financing transactions, ranging from single property mortgage financings to portfolio transactions of 100+ properties, as well as fund-level financings over which some of the largest asset managers will leverage the assets of the fund. The firm stands out in this arena as the team offers strong expertise in both lender and borrower-side work, bringing a multidimensional offering unmatched by most firms.
What types of clients do you represent?
The firm typically represents some of the top developers, investors, sellers, and real estate portfolio companies globally. Some names include: Basis Investment Group, Blue Owl Capital, City National Bank, Galaxy Realty Capital, JDS Development, L&L Holding Company, Mizuho Bank, Morgan Stanley Bank, N.A., Nuveen/TIAA, Oaktree Capital Management, PIMCO, Prologis, Related Fund Management, Siemens Financial, Starwood, Sumitomo Mitsui Banking Corporation, and The Praedium Group
What types of cases/deals do you work on?
Gerd has recently worked on: representing Nuveen Real Estate and Teachers Insurance and Annuities Association of America in the reported-value $3+ billion acquisition of a fully integrated affordable housing company, the second largest and most complex transaction in Nuveen’s history and one that is transformative for Nuveen’s affordable housing platform; a joint venture comprised of JDS Development, Spruce Capital, Madison Capital, & Kevin Maloney in the refinancing of 111 West 57th Street in New York—the supertall residential skyscraper in midtown on “Billionaire’s Row”—with complex mortgage financing with five tranches of mezzanine debt as well as preferred equity, which transaction was one of the largest refinancings in Manhattan reported in September 2022; and representing Starwood Capital in its first transaction for its recently launched Starwood Impact Investors initiative, including forming and seeding an investment in an operating company with Obsidian Capital Partners for the acquisition and operation of multifamily properties in certain target markets as the first of many intended joint venture and operating arrangements in which Starwood will partner with minority- and women-owned real estate operators.
Eric has recently worked on: representing a large international banking institution in the origination of multiple capital commitment-backed credit facilities made available to U.S. and international sponsors in the amount of $3.6 billion; representing a large international banking institution in the origination of a capital commitment-backed credit facility made available to a U.S. sponsor in the amount of $3.3 billion; representing multiple private debt funds in the origination of multiple acquisition and construction mortgage and mezzanine loans and preferred equity investments in the amount of $1 billion; representing multiple large multinational asset managers and their respective real estate debt funds in the origination of multiple capital commitment-backed credit facilities in the amount of $8 billion; and representing a U.S. financial institution in the origination of a $390 million real estate portfolio financing, secured by more than 70 retail strip malls across the U.S.
How did you choose this practice area?
Eric: When originally deciding among law firms as a summer associate candidate, I was sold on the entrepreneurial spirit exuded by many of the Paul Hastings associates with whom I met. I found that the partners and associates I shadowed displayed more than just a technical expertise over the area of law that they practiced. Each proved to be a skilled advisor and strategist when discussing issues of material consequence to clients on their transactions. It felt as if the lawyers were taking on the role of both attorney and business consultant. I was excited by the prospect of learning the same skills while becoming a vital part of each client’s business.
Gerd: Although the substantive work was certainly a major factor, it was not my only consideration. I recall closely observing the people in each practice area—trying to discern the extent to which there were common attributes or personalities that made them successful. While not exclusive to my practice area (or real estate more broadly), the people I encountered in the development/equity side of our practice generally demonstrated a relatively high level of social and emotional intelligence and strong ability to connect with people. They talked about markets and the business of real estate with fluency, and connected with clients on the commercial side (even more so than on the legal side). The approach to negotiations and client discussions demonstrated psychological, intellectual, and emotional range, reminiscent of a good Texas Hold’em player—where it’s just as important to technically evaluate your cards as it is to read the people around the table. I found myself attracted to this group of individuals, sensing that my upbringing in the Bronx, appreciation for social dynamics, and background in economics would serve me well in this practice area.
What is a typical day like and/or what are some common tasks you perform?
Eric: As a transactional lawyer, I’ve come to appreciate that each day can be quite different than the one before. I often have many conference calls scheduled with clients, opposing counsel, and colleagues within the firm, but the topics of those calls will vary depending upon the day of the week and the matters my team and I are then working on. For example, I may be assisting one client on the negotiation of one or more term sheets, while working on a number of live transactions for other clients.
Gerd: A typical day for me begins at around 5:45 a.m. I start with a workout, get dressed, make breakfast for my daughters, and see them off to school. Then I head to the train station for my 50-minute commute into the office. My workday often includes a mix of conference calls. I also allocate a chunk of time for drafting and working closely with associates, reviewing documents, and seizing teachable moments. During any given work week, I engage in several business development activities, such as lunches or dinners with clients.
What training, classes, experience, or skills development would you recommend to someone who wishes to enter your practice area?
Eric: If you are interested in becoming a finance practitioner, I believe it is important to take courses focused on secured transactions and bankruptcy matters. Every financing my team and I work on is a secured financing, meaning that the lender receives some collateral in consideration for the loan it has made to a borrower. In addition, as we are often asked to lead negotiations, I would recommend practical skills courses, if available.
Gerd: I often analogize the practice of real estate to the skill of driving, where I believe experience and hours “behind the wheel” ultimately trump natural talent. To excel, a junior associate should aim to be responsive, hardworking, open-minded, and maintain a positive attitude. Success in this area requires practice, and to get that, one must become the associate that everyone wants to work with. Lastly, it’s important to look ahead and prepare for where you want to be. The skillset required to be a rock star junior associate does not perfectly overlap with those necessary to be a terrific mid-level associate, and so on.
What is the most challenging aspect of practicing in this area?
Gerd: The most challenging aspect of real estate practice is also the most exhilarating: dealing with sophisticated, complex issues that demand creative problem-solving and rapid learning to address client issues effectively. This level of practice truly embodies the idea that there’s no single right answer to any problem. Another challenging aspect of this practice area is negotiating from a less advantageous position, such as being a borrower or a minority capital partner in a joint venture. In these situations, I take great pride in knowing that our clients have confidence in our ability to support them.
What do you like best about your practice area?
Gerd: What I love most about my practice area is the thrill of driving through a city and recognizing projects I’ve played a significant role in.
Eric: The career of a lawyer is certainly demanding, but when you have the opportunity to work with colleagues and clients who become friends (many of whom become great friends), it will make for a more fulfilling and rewarding experience.
What are some typical tasks that a junior lawyer would perform in this practice area?
Eric: I chose Paul Hastings because of that entrepreneurial spirit the firm exuded when I was a summer associate candidate. That same energy is as strong as ever today. I have found that being an entrepreneur has a different connotation at each level of one’s career. A junior lawyer who excels at being an “entrepreneur” is someone who displays a desire to learn, evidences an ability to take on assignments that are not defined by “class year,” and becomes an integral part of the team. Junior lawyer tasks on my team include assisting with turning drafts of transaction documents, managing deal checklists, performing and preparing summaries of due diligence, and engaging with clients and opposing counsel.
What are some typical career paths for lawyers in this practice area?
Gerd: Typical career paths in this field can be quite dynamic. Starting in a major law firm like Paul Hastings provides a foundation not just in legal expertise but also in the business side of real estate. Career transitions can include moving to in-house counsel or general counsel positions, or even shifting to the business side. For instance, my mentor, a former associate at Paul Hastings, took a job as General Counsel at The Praedium Group. He then successfully transitioned from a legal role to a business position, and now runs his own multifamily operation.