Real Estate Finance: Structuring Earnout, Release Parcel, and Partial Prepayment/Defeasance Provisions
Recording of a 90-minute premium CLE video webinar with Q&A
This CLE webinar will discuss holdbacks and earnout provisions under which mortgage proceeds are retained by the lender but made available to the borrower upon satisfaction of certain conditions. The panel will also analyze provisions that allow for the release of a parcel post-closing, including the subdivision, easement rights, and entity issues to address. The panel will discuss the prepayment and partial defeasance options with either scenario.
- Holdback/earnout reserves
- Retail and office
- Release parcels
- Subdivision/zoning considerations
- Determining easement rights between the properties
- Partial repayment/partial defeasance of the loan
The panel will review these and other key issues:
- When might a borrower prefer a holdback of loan proceeds instead of a future advance clause in its loan documents?
- How should DSCR be defined in the loan documents, and how long should the target DSCR be maintained to achieve an earnout?
- What are the components of a new lease provision?
- When is partial prepayment preferable to partial defeasance, and vice versa?
David B. Kostman
Loeb & Loeb
Mr. Kostman’s practice focuses primarily on real estate finance, with a concentration on the origination, sale,... | Read More
Mr. Kostman’s practice focuses primarily on real estate finance, with a concentration on the origination, sale, securitization, and servicing of commercial mortgage loans. He represents local, regional and national lending institutions as well as real estate developers and investors. Mr. Kostman also has experience in office and retail leasing, construction and development, and purchases and sales of real estate.Close
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.Close
Virginia (Ginger) Rolfes
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.Close