Structuring Revolving Lines of Credit for Multiple Property Portfolios
Allowing for Draws and Repayments, Adding or Releasing Property, and More
Recording of a 90-minute CLE webinar with Q&A
Conducted on Tuesday, January 24, 2017
Recorded event now available
This CLE webinar will brief real estate counsel on the advantages of using a revolving line of credit as a method of financing a commercial real estate portfolio, and on how revolving lines are structured and documented.
Revolving lines of credit present a financing structure alternative for developers and other borrowers who are active in the real estate marketplace and desire the ability to acquire, develop, sell and refinance properties in their portfolios without having to enter into a new loan transaction each time. The revolving line of credit allows the borrower to draw funds as needed to finance the purchase of additional property or for other purposes, and pay down the loan balance should it sell property, without a requirement of defeasance or yield maintenance.
Listen as our authoritative panel of real estate finance attorneys discusses the legal issues and documentation of these credit facilities and the procedures for making draws and repayments (and obtaining releases). They will also discuss other attributes of these loans, which are typically short term with a floating interest rate and require interest rate hedging.
- Advantages of revolving lines of credit over standard mortgage financing
- Opportunistic acquisition; assemblage of portfolio or sale of properties out of portfolio
- Ability to make draws and pay down loan balance without penalty
- Loan terms generally
- Structure Overview
- Procedures for draws set forth in loan documents—expedited “closings”
- Short term; floating rate (hedged)
- Borrower and entity structures
- Holding Company- pledge of equity interests; UCC perfection
- Individual borrowers and properties
- Joinder agreement
- Borrower formation documents; reps and warranties
- Mortgages on each property (if required)
- Title issues
The panel will review these and other key issues:
- The problems with standard permanent mortgage loans, and the additional flexibility provided under a revolving line of credit
- How to best structure the line of credit borrower
- Adding new borrowers under joinder agreements
- Pledging of equity interests as security and UCC perfection issues
- Cross-collateralization of mortgages and when mortgages are required
Mikel R. Bistrow, Partner
Ms. Bistrow focuses on commercial finance and lending, real and personal property secured transactions, Uniform Commercial Code, creditor's collection and related remedies, bankruptcy, insolvency, and workouts. In her finance practice, she represents lenders and borrowers in documenting and negotiating real and personal property loans and secured transactions, including revolving lines of credit, asset-based loans, securitized credits, and construction financing.
Gordon L. Gerson
Gerson Law Firm,
Mr. Gerson emphasizes real estate and business transact0ions, real estate financing, and loan recovery in his practice. He represents large financial institutions, life insurance companies, and private lenders in his commercial real estate financing practice in making loans secured by commercial or multifamily real estate, represents lenders originating Fannie Mae or Freddie Mac multifamily loans, and represent lenders in foreclosure, receiverships, bankruptcy and other collection actions. He represents private investors in purchase or sale of undeveloped property and developed property, represents lenders in loan portfolio sales, represents private investors in note purchases. He also represents shopping center and other property owners in all matters lease related.
Victoria J. Siesta
Ms. Siesta focuses her practice on real estate finance transactions, working directly with commercial banks, institutional lenders, servicers and borrowers on all aspects of the loan process from application through post-closing and loan servicing. She also has significant experience addressing property level issues. She represents clients in matters relating to acquisitions financing, refinances, building loans, leasehold loans and commercial mortgage-backed securities loans and is experienced in closing loans for commercial buildings, hotels, multi-property portfolios, large multifamily buildings and cooperative and condominium apartment properties. She also has experience representing clients in connection with acquisitions and dispositions of real property and loan workouts.
CLE On-Demand - Streaming Video
Includes recorded streaming video of full program plus PDF handouts.
On-demand is the only recorded format recognized for CLE credits in DE, IN, KS, LA, MS, NC, OH, OK, SC, TN, VA, WI.
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*Only available for attorneys admitted for more than two years. For OH CLE credits, only programs recorded within the current calendar year are eligible - contact the CLE department for verification.
**NH attendees must self-determine if a program is eligible for credit and self-report their attendance.
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AK, AZ, CA, CO, CT, FL, GA, HI, IA, ID, IL, KY, ME, MN, MO, MT, ND, NJ, NM, NY, OR, PA, TN, TX, UT, VT, WA, WV, WY (Note: Some states restrict CLE eligibility based on the age of a program. Refer to our state CLE Map for additional information.)
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I appreciated the 'real world' examples on how a Seller or a Buyer would actually approach a particular rep or warranty issue in today's market.
The speakers were very experienced.
The speakers knew their topics and spoke in practical terms addressing real business risks.
Kenneth J. Clarkson
Very good current, practical and applicable discussion and information provided.
Clawson & Staubes
Webinar contained lots of new information and real life examples.
Real Estate Law Advisory Board
Stroock & Stroock & Lavan
Robinson & Cole
Jenner & Block
Kilpatrick Townsend & Stockton
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