2020 My Client's Commercial Real Estate Mortgage is Due, Now What?

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 will provide you with 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 of volatile 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