In the CMBS Trenches with Shlomo Chopp— Distress, Risk, and Finding Diamonds in the Rough

CMBS workouts aren’t for the faint of heart—and CMBS expert Shlomo Chopp knows it better than most. With 20+ years of experience untangling distressed assets, Shlomo offers a rare, unsparing look into what borrowers, bondholders, and even AAA investors often get wrong. From why “non-recourse” loans aren’t always what they seem to how banking can relationships collapse under pressure, Shlomo lays out why CMBS is a different beast—and why many borrowers walk in unprepared. He dives into tranche warfare, special servicers, and the dangers of relying on outdated property values.

For bondholders, the takeaway is clear: think like real estate professionals. If you're not walking the property and talking to brokers, you're already behind. Stay to the end to hear a sneak peek of Shlomo’s patented micro-fulfillment retail centers—aimed at reviving malls by merging e-commerce with in-store logistics.

This episode is part finance class, part war story, and a must-listen for anyone trying to read between the lines of CRE distress.

01:13 Understanding CMBS Borrowers and Their Motivations

03:19 Recourse vs Non-Recourse Loans in CMBS

07:36 Complexities of CMBS Trusts and Workouts

11:25 Navigating Distress in CMBS Investments

15:17 The Importance of Market Awareness for Investors

25:20 Understanding Market Dynamics and Credit Risk

29:38 Current State of the Distress Cycle

32:43 The Evolution of Retail in the E-Commerce Era

Have questions for the pod team? Send them to Podcast@LightBoxRE.com.

www.lightboxre.com