When a commercial real estate loan comes due, there are, generally, three alternatives for clients: refinance the loan, if possible; sell the property, if possible; or restructure the development's capital structure, perhaps with more equity. There are complex tradeoffs with each.
Renegotiating an extending a loan is time-consuming, even when lenders are willing, and potentially very costly. Selling a project in a frothy market is a possibility, but not universally, and may trigger adverse tax consequences. Most murky of all is restructuring the capital structure of project.
This program provides a practical guide to the issues of working with clients when their commercial real estate loans come due.
- Alternatives when a commercial real estate mortgage comes due
- Exploration of refinance options in an environment ofvolatile interest rates
- Role of preferred equity, mezzanine loans, and second mortgages
- Alternative of selling into a strong market
- Counseling clients about refinance in a time of certainty
Wednesay, March 31, 2021
- Anthony Licata, Taft Stettinius & Hollister LLP, Chicago
March 31, 2021
North Carolina: 1.00 MCLE Hour
See pricing below.