Real property that is a single property or project (other than residential real property with fewer than four residential units). To qualify as single asset real estate, the property must generate substantially all of the gross income of a debtor and there must be no substantial business conducted there other than the business of operating the real property and conducting activities incidental to the operation of the real property.
A lender with a lien on single asset real estate receives special protections under the Code and may obtain relief from the automatic stay if the debtor fails to, within 90 days after commencement of the case, file a plan of reorganization that has a reasonable possibility of being confirmed within a reasonable time or fails to start making interest payments to the lender.
If there is a dispute as to whether the real estate qualifies as single asset real estate, then the debtor must file a plan or start making payments of interest to the lender as stated above within 30 days after the bankruptcy court determines that the property is single asset real estate. Under new provisions introduced by BAPCA, the burden is on the lender to bring the issue of “single asset real estate” status before the court if the debtor denies in its schedules that its property is single asset real estate.
Courts have held that hotels, nursing homes, marinas, and similar operations that involve an active business other than operation of the real estate itself do not constitute single asset real estate.
Bankruptcy Code §§ 101(51B), 363(d)(3).