Legal Definitions - single-asset real estate

SINGLE-ASSET REAL ESTATE

Single-asset real estate refers to a single piece of property, excluding residential property with less than four residential units, that a debtor uses for business purposes and generates most of their income from. The property must have secured debts of $4 million or less that are fixed and not dependent on any conditions.

An example of single-asset real estate could be a small shopping center that a business owner operates and generates most of their income from. Another example could be a warehouse that a company uses for storage and distribution.

These examples illustrate the definition of single-asset real estate because they are both single pieces of property that are used for business purposes and generate most of the debtor's income. Additionally, the secured debts on the properties are fixed and not dependent on any conditions.