Structuring Real Estate Financing With Foreign Borrowers, Trusts, and Tenants in Common
Documenting U.S. Assets of Foreign Guarantors, Reviewing TIC Agreements, Revocable vs. Irrevocable Trusts, and More
Recording of a 90-minute premium CLE video webinar with Q&A
This CLE course will enable counsel to structure real estate loans with borrowers that are foreign investors and guarantors; trusts as investors or guarantors; and tenants in common (TIC). Lending standards have evolved for handling the different borrowers. The panel will discuss issues unique to each type of borrower, as well as additional due diligence and loan document revisions needed to address these issues.
- Foreign parties as investors and guarantors
- OFAC, anti-money laundering, and other due diligence
- The requirement of domestic assets (if guarantor)
- Need for a domestic single-purpose entity
- Appointment of U.S. agent; loan document revisions
- Tenants in common
- Key provisions in the TIC agreement
- Need for each TIC to be an SPE
- Appointment of managing TIC or other designated manager
- Subordination of TIC agreement and TIC claims; loan document revisions
- Trusts as investors and guarantors
- Revocable vs. irrevocable trust: nailing down trust assets
- Role of the trustee, beneficiaries--identifying control issues
- Transfer and other loan document revisions
The panel will review these and other key issues:
- What are the additional due diligence and structuring requirements for borrowers with foreign investors?
- Why are U.S. assets and a U.S. agent for service important for loans with foreign guarantors?
- How should TIC borrowers be structured, and what provisions are critical in the TIC agreement and the loan documents?
- What are the key issues that arise in lending to trusts, and how should those transactions be documented?
Gerard C. Keegan, Jr.
Alston & Bird
Mr. Keegan is Co-Chair of the firm’s Real Estate Finance and Investment Group. He represents institutional... | Read More
Mr. Keegan is Co-Chair of the firm’s Real Estate Finance and Investment Group. He represents institutional lenders in all aspects of real estate financings and restructurings and investors in the acquisition, development and operation of commercial properties, including retail, office, hospitality and mixed-use projects. Mr. Keegan has expertise in the representation of investment and national banks and other lenders in the origination, securitization, syndication, sale and workout of commercial real estate loans.Close
Jon S. Robins
Mr. Robins handles a broad range of finance, equity investment, and real estate activities for clients in the private... | Read More
Mr. Robins handles a broad range of finance, equity investment, and real estate activities for clients in the private equity fund, capital market, institutional lender, REIT, hedge fund, developer, owner/operator, corporate, and investor space. For more than two decades, he has represented lenders and equity providers, including conduit lenders, banks, insurance companies, family offices, and private equity funds, in diverse matters such as the formation of joint ventures, structuring and making preferred equity investments, the origination, purchase, sale, restructuring, and enforcement of mortgage loans; mezzanine and construction loans; subordinate ("B") notes; participation and co-lender interests; and in structuring and negotiating inter-creditor, co-lender, and participation and servicing agreements. In complex and novel structures of mortgage and mezzanine loans, he often represents CMBS lenders and borrowers.Close