Assisting in Commercial Financing and Syndication
We can help organize funding for real estate transactions and projects
Obtaining funding is the linchpin of many commercial real estate transactions and projects. As lenders have become more cautious and credit has gotten increasingly hard to obtain, developers, entrepreneurs and investors have had to turn to more creative options for funding major ventures. As attorneys with a wealth of experience in finance, business structures and commercial real estate transactions, our team has helped facilitate financing for numerous real estate projects and joint ventures. Our legal knowledge and excellent reputation allows us to work with lenders and property owners to craft creative and workable financing solutions for you.
Our traditional financing practice
The financial crisis in 2008 and the ensuing recession severely impacted real estate markets and led to a drastic reduction in the availability of credit for real estate financings, particularly new projects. Lenders’ requirements for equity in projects have become much more stringent, limiting the ability of property owners to obtain refinancing and the ability of developers to undertake new projects. Our real estate lawyers are regularly involved in commercial real estate financing, representing property owners as well as lenders, and they have familiarity with the new underwriting standards, as well as the typical requirements now included in commercial real estate loan documentation. Our attorneys can also guide clients through the more stringent due diligence processes, which lenders are now imposing. In addition to work with commercial banks, our attorneys have experience with life insurance lenders, as well as government grants and incentives, which can provide alternative sources of financing or equity for a project. Our experience with a variety of types of financing and a variety of projects helps us to develop creative and practical financing solutions for our clients.
Workouts and Restructuring
The recession and the reduction in availability of credit have contributed to a dramatic increase in the number of distressed commercial real estate properties. Often, it is necessary for a property owner or lender to restructure troubled credits through out-of-court workouts. Our real estate attorneys have experience in negotiating and documenting restructuring transactions, including forbearance transactions and loan agreement amendments, as well as deeds in lieu of foreclosure, receiverships, and lien or payment subordination transactions.
Alternatives to traditional borrowing
The credit crunch has led to increased reliance on private investors for major real estate projects. Syndication allows several investors to pool their resources to fund a large property purchase or development project. Real estate syndicates can help provide developers with needed capital and can allow investors to diffuse risk while still maintaining high-profit potential. While real estate syndication can be an attractive option, forming a syndicate can be complex. Our attorneys advise promoters on the best means of forming real estate syndicates and then provide continued counsel to general partners, managing members or other responsible parties once the syndicate has been formed.
We recognize that many financing transactions are now handled by out of state lenders with their own legal counsel. Our attorneys frequently serve as local counsel on behalf of the lender to help facilitate those transactions. We are familiar with lenders’ requirements in the due diligence process, including requirements for legal opinions. When serving in the role of local counsel, we commit ourselves to meeting the timeframes and requirements established by the lender and borrower in a timely and efficient manner.