Gone are the days when financing a real estate purchase meant obtaining a simple loan from the local banker. Today, investors may create a joint venture as an investment vehicle, take out a construction loan, bridge it with mezzanine financing, and secure a permanent loan before their project is completed. And then there are a wide variety of other complex financing mechanisms to consider, from loan syndications and REITs to interest-rate swaps and tax credits.
Pryor Cashman excels at putting together the various pieces of modern real estate transactions and negotiating the types of financing that will most effectively and efficiently achieve our clients’ goals.
What We Do
Our real estate attorneys close well over $1 billion in real estate finance transactions each year. Representing developers, lenders, investment banks, pension funds, real estate investment trusts (REITs), domestic and foreign investors, major corporations and individuals, we structure, negotiate, document and close a wide spectrum of real estate financing transactions in the New York area and nationwide.
From office buildings to shopping centers and mixed-use developments, our attorneys represent owners, developers, investors and lenders in financing projects from initial development and construction through obtaining a line of credit or refinancing for long-term ownership. We work closely with attorneys throughout our Real Estate Group to structure and close financing for the development of condominiums, cooperatives, hotels and restaurants, and we have experience with a wide variety of financing vehicles, such as:
- Commercial mortgage-backed securities (CMBS) loans
- Credit-tenant financing
- Forward loan commitments
- Interest-rate swaps, caps and collars
- Letters of credit issuances
- Loan participations and syndications
- Loans secured by credit and ground leases
- Mezzanine loans
- Mortgage-backed bond credit enhancement
- Participating loans
- Revolving lines of credit
- Sales and exchanges, including like-kind and tax-free exchanges
- Single-mortgage loans secured by one or more commercial or multifamily properties
Structuring the Deal
From advising on the most advantageous ownership
structure for an acquisition to negotiating a workout or deed in lieu of foreclosure, our attorneys collaborate with our Banking & Finance and Corporate Groups to advise clients on every aspect of real estate finance.
We represented a large restaurant group in its acquisition, financing and rollout of a national franchise, including the refinance of a $300 million credit facility. We have also represented one of the largest parking garage companies in New York City in the restructuring and financing of its portfolio of more than 100 owned, leased and managed properties in a multilayered transaction that involved the buyout and replacement of a co-founding member.
Our real estate finance attorneys work hand-in-hand with our Tax Group on many of our clients’ financing transactions. A staple of this practice is tax-free like-kind forward and reverse exchanges, particularly those involving the use of tenancies in common. Additionally, we are well versed in the tax advantages of various partnership and LLC arrangements and have structured both loan syndications and participations, and advised on tax credits and other incentives to reduce tax liability.
Experienced Portfolio and REIT Advisors
Pryor Cashman is active in transactional and regulatory work for REITs and owners of real estate portfolios, including properties such as:
- Apartment buildings
- Government-assisted projects
- Industrial properties
- Manufactured home communities
- Office buildings
- Shopping centers
Our attorneys have counseled clients on:
- Structuring and marketing of REIT securities
- Organization and registration under federal and state securities laws
- Public and private offerings of equity and debt securities
- Securitization transactions
- Secured and unsecured loans
- Loan and property portfolio management
From acquisition finance through deal structuring and final disposition, we advise clients throughout their property and loan life cycles, helping them build solid real estate portfolios and optimize their properties’ value.