Structuring Real Estate Loans 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 CLE webinar with Q&A
This CLE webinar will enable counsel to structure real estate loans with borrowers which are comprised of foreign investors and guarantors; trusts as investors or guarantors; and tenants in common (TICs). Lending standards have evolved for how each should be handled. The panel will discuss issues unique to each type of borrower, as well as additional due diligence and loan document revisions needed to address those issues.
- Foreign parties as investors and guarantors
- OFAC, anti-money laundering and other due diligence
- Requirement of domestic assets (if guarantor)
- Need for domestic single purpose entity
- Appointment of U.S. agent; loan document revisions
- Tenants in common
- Key provisions in 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 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
Klehr Harrison Harvey Branzburg
Mr. Robins' practice includes a full range of finance, equity investment and real estate activities for private... | Read More
Mr. Robins' practice includes a full range of finance, equity investment and real estate activities for private equity funds, capital markets and institutional lenders, REITs, developers, owner/operators, corporations, and investors. He represents lenders and financing providers and regularly advises mortgage, mezzanine and commercial lenders and preferred equity investors, as well as investors. Further, Mr. Robins regularly represents CMBS lenders and borrowers in the origination of mortgage and mezzanine loans.Close