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Stroock attorneys speak at IMN’s Borrower & Investor Forum on Real Estate Mezzanine Financing & Subordinated Debt

Stroock Partners William Campbell and Diana Brummer spoke at IMN’s Borrower & Investor Forum on Real Estate Mezzanine Financing & Subordinated Debt on November 10, 2015 in New York, NY.

William Campbell  participated in the panel discussion "Documentation & Deal Structuring Today to Offer Greater Protection in Workouts Tomorrow." The panel examined:

  • Deal structuring and documentation: Recent noteworthy trends
  • Inter-creditor agreements: What are the key points in structuring them today? How to better protect your interests in the case of a default? What are the common mistakes to avoid?
  • Under what circumstances are control rights more or less important? Cure rights?
  • Multi-tranche/multi-lender deals – How to structure? * Are the dynamics of negotiations changing? Are there situations in which mezz/sub-debt lenders have the advantage?
Diana Brummer participated in the panel discussion "Preferred Equity/Mezzanine/Bridge Finance for Land Acquisition, Pre-Development & Construction Deals: Borrower & Lender Perspectives." The panel examined:
 
  • Raw land acquisition vs. pre-development costs vs. new construction: What financing is available and from what types of capital provider? What types of development/construction are being favored? In what locations?
  • Are underwriting standards getting too loose in certain markets? With so much capital hungry for deals, is it closer to being a borrowers market?
  • What are typical deal terms/conditions today? Timeframes to close?
  • How about secondary and tertiary market financing? What types of development/geographies are still not getting financed?
  • From the borrower perspective how does preferred equity compare to mezzanine/bridge financing in a land/pre-development/ construction deal? Are there particular deals or situations where preferred equity makes more sense than mezzanine/bridge financing for lenders or borrowers?
  • What do borrowers need to do to attract financing for raw land? For pre-development? For construction?
  • Pre-Leasing: What do lenders expect?
  • Risks associated with liens
  • Deals going bad mid-construction: What are the workout considerations for land and construction deals for borrowers and lenders? What are the inter-creditor issues for construction loans? What is the latest in protection in the case of a default?