Drafting and Negotiating Real Estate Loan Documents: Key Issues and Strategies for Borrowers and Lenders
Structuring Loans to Fit Property Type, Borrowing Entity, Deal Size, Environmental, and Other Conditions
Recording of a 90-minute premium CLE video webinar with Q&A
This CLE webinar will examine the key features and documentation of commercial mortgage loan transactions in today's market. The panel will discuss provisions of particular concern to borrowers and lenders, typical negotiating points, and securitization or syndication parameters which may limit the lender's flexibility.
Outline
- Review of primary loan documents
- Promissory note
- Mortgage and security agreement
- Loan agreement
- Assignment of leases and rents
- Guaranty: recourse vs. non-recourse
- Environmental indemnity
- Cash management agreement
- Loan commitment or term sheet
- Key provisions
- Conditions precedent to funding
- Personal liability
- Events of default: notice and cure rights
- Prepayment/defeasance
- Due on sale or transfer
- Lease approvals
- Reserves and cash traps
- Condemnation and casualty
- Insurance
- Cross-default with cross-collateralization
- State of the market: current thoughts
Benefits
The panel will review these and other critical issues:
- From the lender's standpoint, what deal points must be included in a loan agreement? When might "short form" documents be available for smaller deals?
- How have securitization and syndication affected structuring and documenting real estate loans?
- What provisions are of the most concern to the borrower, and to what extent can they be negotiated?
Faculty
Andrew Maguire
Shareholder
McCausland Keen + Buckman
Mr. Maguire counsels REITs and other publicly-traded companies, as well as privately held entities and family office... | Read More
Mr. Maguire counsels REITs and other publicly-traded companies, as well as privately held entities and family office clients. He negotiates, documents, and closes acquisitions, dispositions and financings across the spectrum of commercial real estate sectors, including apartment properties, self-storage facilities, retail centers, office buildings, medical facilities, hotels, and industrial properties. Mr. Maguire also has significant experience representing national and regional landlords and tenants in a wide range of leasing matters.
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Virginia (Ginger) Rolfes
Partner
Nelson Mullins Riley & Scarborough
Ms. Rolfes is a real estate and finance attorney with more than 15 years of experience. She is experienced in... | Read More
Ms. Rolfes is a real estate and finance attorney with more than 15 years of experience. She is experienced in commercial lending, asset management, finance, leasing, and general real estate matters. She has experience in originating commercial real estate loans that are securitized and sold on the bond market (also known as commercial mortgage backed securities or CMBS). Ms. Rolfes represents banks and other lending institutions making loans on commercial properties such as office developments, retail centers, hotels, and manufactured housing complexes, among others. Ginger also works with tenants in the negotiation of a variety of leases and related issues and regional developers in the purchase and sale of commercial properties.
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Matthew L. Strayer
Partner
Bricker Graydon
Mr. Strayer represents buyers, sellers, owners, developers, and lending institutions on real estate projects involving... | Read More
Mr. Strayer represents buyers, sellers, owners, developers, and lending institutions on real estate projects involving retail, hospitality, industrial warehouse, and other uses and industries. He also has experience representing landlords in relation to commercial leasing and other end uses. Additionally, Mr. Strayer represents construction and permanent mortgage lenders in the negotiation and documentation of new and restructured commercial loans.
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