Mixed-Use Construction Loan Finance: Senior Lender Due Diligence, Multiple Lender Challenges
Ensuring Proper Collateral Structure and Loan Documentation in Event of Borrower Default or Project Failure
Recording of a 90-minute premium CLE webinar with Q&A
This CLE webinar will brief real estate financing counsel on challenges for lenders and developers in structuring debt and mezzanine financing for mixed-use and real estate development projects in the current economic environment. The program will discuss the due diligence lender counsel should conduct and borrower’s counsel should expect.
Outline
- Current terms for construction loans
- Completion guaranties
- Payment guaranties
- Collateral assignments of borrower’s rights under any development agreements
- Collateral assignments of project leases
- Lender due diligence issues
- Scrutiny of land development agreement with municipality
- Borrower covenants
- Fees due municipality
- Mortgagee protection provisions
- Lender rights vs. the municipality’s rights
- Title, survey and zoning due diligence
- Environmental due diligence for contamination and other brownfield issues
- Review of borrower’s operating agreement: SPEs and other control issues
- Scrutiny of land development agreement with municipality
- Dealing with multiple lenders
- Coordinating default remedies with other lenders
- Multiple ownership entities: reciprocal easements and access agreements
- Syndicated lenders
- Subordinate and mezzanine lenders
- Intercreditor agreements
- Rights in event borrower’s default
Benefits
The panel will review these and other key issues:
- What are the key due diligence points for lenders financing mixed-use development projects?
- What special challenges arise when there are multiple lenders involved in various phases for parts of the project?
- What significance does the borrower’s development agreement with a municipality have on the lender and what issues should borrower’s counsel be concerned with?
Faculty

Jeffrey J. Temple
Partner, Co-Chair- US Real Estate Group
Morrison & Foerster
Mr. Temple represents a broad spectrum of clients in connection with investments in, and the financing, development,... | Read More
Mr. Temple represents a broad spectrum of clients in connection with investments in, and the financing, development, operation and disposition of, commercial real estate assets, with particular emphasis on the representation of institutional lenders, real estate investment fund sponsors and private equity investors. His practice focuses on the representation of both lenders and borrowers in complex, multi-tiered finance transactions and credit facilities of all types, including transactions involving the acquisition and disposition of real estate assets and the acquisition and sale of loans and loan portfolios.
CloseEric D. Lemont
Sullivan & Worcester
Mr. Lemont’s practice focuses on transactional commercial real estate matters, including acquisitions and sales... | Read More
Mr. Lemont’s practice focuses on transactional commercial real estate matters, including acquisitions and sales across various property types, debt purchases, joint ventures, and mezzanine, construction and permanent financings, with particular expertise representing borrowers in subscription-secured financings. In addition, he regularly represents corporate clients on a diverse range of real estate related matters.
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