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.
Note: This material qualifies for self-study credit only. Pursuant to Regulation 15.04.5, a lawyer may receive up to six hours of self-study credit in a reporting year. Self-study programs do not qualify for ethics, elimination of bias or Kansas credit.
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