HVCRE: The Continuing Saga of Lenders
Due to widespread population growth, job creation and long-term rental demand, Florida continues to attract multifamily development. However, Florida’s regulatory framework, insurance environment and lender expectations can...more
Imagine this: A national retail chain signs a 25-year ground lease to build a flagship store on a prime urban parcel. The tenant will spend millions constructing the building, installing fixtures, and customizing the space,...more
This is the third in a ten-part article series on the legal strategies shaping the future of data centre development in the UK. The United Kingdom’s data centre sector is built on a striking paradox: demand for digital...more
I’d like to direct your attention to my ex Dechert partner (he’s not ex, I am), Will Cejudo, and his recent OnPoint about the eponymously-titled Pancake REMIC. (Regrettably, no one is paying me for this, I’ve got to figure...more
Competition among hyperscalers for market dominance in cloud computing and artificial intelligence (AI) has created a capital-intensive race for developers to build out the next generation of data center infrastructure. To...more
If you’re a developer in Florida, you’re navigating a perfect storm. Soaring insurance premiums, volatile interest rates, and stubborn construction costs are squeezing pro formas and putting promising projects on hold....more
A recent case out of Georgia involved a contractor's licensing failure voiding the construction loan that was financing the project. However, there was a twist....well, several twists—a contractor who was also a lender, an...more
Loeb & Loeb partner Jeffrey Fried gives an insider perspective on the state of the commercial real estate finance space, what’s driving current trends and how we’re helping clients navigate a path forward. Whether you’re an...more
When negotiating construction contracts, attorneys often focus on the American Institute of Architects (AIA) A201-2017 General Conditions, a widely used standard in the industry. However, construction loan agreements, drafted...more
In this episode of Terra Firma, Conversations on Commercial Real Estate, Stacey Tyler and Stephen Tanico are joined by Lowenstein Real Estate partner Kimberly E. Lomot for a discussion on financing term sheets. They review...more
Loan financing is a cornerstone of real estate development. It’s a rare project that has captive capital to finance the entire project, and many investors expect that their contributions will be leveraged with debt financing....more
If you develop or build on real property in Oregon, your progress payments to contractors on future projects will be affected by a new law, effective on March 7, 2024. If you are a construction lender, your borrower may...more
The Ballard Spahr Team was thrilled to be here in Miami at the CREFC Conference and we wanted to share some day one takeaways with our clients and friends....more
The Consumer Financial Protection Bureau (CFPB) has approved an application from the Independent Community Bankers of America (ICBA) to pilot disclosures for construction loans, paving the way for lenders to use and test the...more
On November 21, the CFPB announced it approved an application from a community banking trade organization to pilot disclosures for construction loans. The application was submitted pursuant to the CFPB’s trial policy programs...more
The CFPB recently approved an application (Application) from the Independent Community Bankers Association (ICBA) for alternative disclosures under the Truth in Lending Act (TILA)/Real Estate Settlement Procedures Act (RESPA)...more
Construction financing is used to fund the construction of renewable projects prior to such projects obtaining long-term financing. Because construction loans are disbursed during a high-risk phase of a project, these loans...more
The closure of Silicon Valley Bank (SVB) and Signature Bank, and the subsequent receivership by the Federal Deposit Insurance Corporation (FDIC), has far-reaching effects, including to commercial real estate transactions in...more
Construction lenders beware – a recent Arizona Supreme Court decision interpreting Exclusion 3(a) of standard-form title-insurance policies could mean lenders are not insured against a senior mechanics’ lien if the lender’s...more
Regulatory Developments - Agencies Issue Joint Statement on Liquidity Risks Resulting from Crypto-Asset Market Vulnerabilities - On February 23, the Federal Reserve, FDIC and OCC (the Agencies) issued a “Joint...more
On February 27, the CFPB announced it is in the final stages of reviewing an application for alternative mortgage disclosures for construction loans submitted by a trade group representing small U.S. banks. ...more
Key Highlights - - Interest of innocent third party without notice not an absolute bar on rescission remedy. - Lenders, project companies, subcontractors and suppliers should seek risk mitigation measures to decrease...more
The Federal Reserve will likely raise its target federal funds rate by another 0.75 percentage point as early as next week, according to news reports. Fed officials have already raised benchmark short-term borrowing rates 1.5...more
In BCD Associates., LLC v. Crown Bank, CA No. N15c-11-062 (Super. Ct. Del, May 2, 2022), the trial court found that when a bank pays a contractor directly, it can create a legally binding relationship subject to the terms of...more
After a number of controversial bills proposed from various industry groups over the last few years, the Tennessee construction community came together in 2020 to push through legislation intended to protect members of the...more