Structuring Revolving Lines of Credit for Multiple Property Portfolios
Allowing for Draws and Repayments, Adding or Releasing Property, and More
Recording of a 90-minute premium CLE video webinar with Q&A
This CLE course will brief real estate counsel on the advantages of using a revolving line of credit to finance a commercial real estate portfolio and on how revolving lines are structured and documented.
Outline
- Advantages of revolving lines of credit over standard mortgage financing
- Opportunistic acquisition; an assemblage of portfolio or sale of properties out of the portfolio
- Ability to make draws and pay down loan balance without penalty
- Loan terms generally
- Structure overview
- Procedures for draws outlined in loan documents: expedited "closings"
- Short-term; floating rate (hedged)
- Documentation
- Borrower and entity structures
- Holding company: pledge of equity interests; UCC perfection
- Individual borrowers and properties
- Joinder agreement
- Borrower formation documents; reps and warranties
- Mortgages on each property (if required)
- Title issues
Benefits
The panel will review these and other key issues:
- The problems with standard permanent mortgage loans and the additional flexibility provided under a revolving line of credit
- How to best structure the line of credit borrower
- Adding new borrowers under joinder agreements
- Pledging of equity interests as security and UCC perfection issues
- Cross-collateralization of mortgages and when mortgages are required
Faculty
Caroline W. Dreyfus
Partner
Cox Castle & Nicholson
Ms. Dreyfus is a finance attorney with a practice that involves assets in every state, having represented every type of... | Read More
Ms. Dreyfus is a finance attorney with a practice that involves assets in every state, having represented every type of lender from large national banks and life insurance companies to small private lenders and conduit lenders. She also works with borrowers in acquisitions and dispositions as well as all their financing needs. The types of transactions for both lenders and borrowers cover the entire spectrum from straight mortgage and construction loans, CMBS loans, Fannie Mae and Freddie Mac loans, and mezzanine loans to lines of credit, syndicated loans, and sale-leaseback transactions. Ms. Dreyfus also represents clients in the selling and purchasing of loans, both individual notes along with portfolios, including an analysis of all the due diligence and existing financing documents.
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Matthew L. Strayer
Partner
Bricker Graydon
Mr. Strayer represents buyers, sellers, owners, developers, and lending institutions on real estate projects involving... | Read More
Mr. Strayer represents buyers, sellers, owners, developers, and lending institutions on real estate projects involving retail, hospitality, industrial warehouse, and other uses and industries. He also has experience representing landlords in relation to commercial leasing and other end uses. Additionally, Mr. Strayer represents construction and permanent mortgage lenders in the negotiation and documentation of new and restructured commercial loans.
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