Westchester County Real Estate Transaction Attorneys Assist Clients During The Financing Stage
Complex deals require superior legal representation
One of the most important parts of a commercial real estate transaction is the financing chosen by the buyer. Selecting a type of loan, obtaining an opinion letter, and analyzing lending agreements are all typically necessary in a commercial real estate deal. At Ball & Ferrari, P.C., our New York commercial real estate attorneys are experienced in the intricate details of financing. We protect your best interests while providing sound legal advice and savvy strategies, so you can make the best decisions possible.
Types of financing
There are many options available to borrowers during a commercial real estate transaction. These include:
Acquisition and development loans
Commercial mortgage-backed securities loans
Bridge loans are a short-term loan. In most cases, property owners use bridge loans to fill the gap between selling one property and buying a different property. To obtain a bridge loan, the borrower must submit a large amount of paperwork and prove that all loan requirements shall be met.
Acquisition and development loans, or A&D loans for short, may be used when the borrower only wants to use a portion of the loan to actually purchase property. The remainder of the loan is set aside for developing land and other procedures. Like bridge loans, A&D loans have a substantial number of requirements that borrowers must meet. A&D loans involve construction law, finance law, zoning requirements, and contract law. With the assistance of an experienced commercial real estate attorney, borrowers should be able to secure a loan that has favorable terms and quickly begin working on their projects.
Construction loans may be obtained by a borrower to build a structure. Before agreeing to provide funding for a construction loan, a lender may ask for documentation of the structure’s predicted profits, as well as a number of other pieces of information. Because construction loans may be quite risky for the lender, there are generally many hurdles a borrower must overcome before the funds are disbursed.
Commercial mortgage-backed securities loans, or CMBS loans, are secured by commercial mortgages. CMBS loans are highly complex and require a careful understanding of tax law, real estate law, finance matters, and securities law. Because these types of loans are so complicated, it is recommended to have one of our skilled New York commercial real estate attorneys on your side to assist with the entire process, from structuring the loan to the closing.
Mezzanine financing, like a bridge loan, is a short-term loan. The borrower, which is usually a developer, offers interest in the company to secure the loan. Understandably, these loans require advanced knowledge of financing and must be carefully structured.
Our commercial real estate attorneys wade through the labyrinth of paperwork, helping borrowers save significant sums of money as they secure loans. With our assistance, borrowers understand exactly what they are agreeing to and obtain the most favorable terms possible.
Contact our firm today to discuss your financing or other real estate needs
At Ball & Ferrari, our commercial real estate attorneys are well-versed in the numerous financing matters impacting commercial real estate transactions in New York. To ensure your deal goes as smoothly and as quickly as possible, call (914) 779-2600 or contact us online to set up a consultation to learn about your options.