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New York State Legislature Considers Extending Mortgage Recording Tax to Mezzanine Debt and Preferred Equity

A New York State bill that seeks to charge a recording tax on mezzanine debt financings has been revised to extend the recording tax to preferred equity investments. In January 2020, Senator Julia Salazar and Assembly...more

Second Circuit Decision Addresses New York Usury Laws and Post-Default Mortgage Loan Obligations

On March 30, 2020, the U.S. Court of Appeals for the Second Circuit affirmed several holdings of the District Court for the Eastern District of New York requiring a commercial mortgage borrower to pay default interest at a...more

Selling and Purchasing Performing and Non-Performing Loans: Threshold Issues to Consider

In the current economic climate there will be increased interest and volume in the sale and purchase of performing and non-performing commercial mortgage loans and mezzanine loans. The following is a list of threshold issues...more

Key Issues for Preferred Equity Investors in Real Estate Transactions

Preferred equity is an alternate form of financing that is provided either instead of, or subordinate to, mezzanine financing in commercial real estate transactions. It is an equity investment in a joint venture, which is,...more

PACE Loan Considerations for Commercial Real Estate Lenders

Property Assessed Clean Energy (PACE) loans provide property owners with financing for “green” improvements designed to increase energy efficiency, water conservation, disaster resiliency and renewable energy solutions. PACE...more

Mortgage and Pledge of Equity — Clogging the Equity of Redemption?

A recent decision by the Supreme Court of New York, New York County, addressed the issue of whether the borrower's equity of redemption was being impermissibly "clogged" by a foreclosing lender. The case, HH Cincinnati...more

Leasehold Financing: Key Issues for Mortgage Lenders

When entering into a long-term ground lease, one of the ground lessee’s principal concerns is assuring that its leasehold interest in the property is “financeable.” A mortgage lender providing financing to the holder of a...more

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