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Course Details

Course Information
  • smart_display Format

    On-Demand

  • signal_cellular_alt Difficulty Level

    Intermediate

  • work Practice Area

    Real Property - Finance

Date & Time
  • event Date

    Tuesday, November 19, 2024

  • schedule Time

    1:00 p.m. ET./10:00 a.m. PT

  • timer Program Length

    90 minutes

Credit Information

  • This 90-minute webinar is eligible in most states for 1.5 CLE credits.

$347.00
CLE
ALL

This CLE webinar will discuss how climate change and the associated risks impact commercial real estate financing and investing. The panel will explore the effect climate risks have on real estate values and changes lenders and investors need to make to mitigate their climate risk exposure, including conducting thorough risk assessments, enhanced disclosures, stricter underwriting standards, and more restrictive loan covenants.

Faculty

Kristin E. Niver
Counsel
Robinson & Cole LLP

Ms. Niver represents banks, insurance companies and debt funds in construction and permanent loans, debt restructurings and secondary market transactions, as well as working with market-rate and affordable housing developers and owners on financings, acquisitions and sales, joint venture arrangements, condominium regimes, and leases for all product types, including multifamily, retail, office and hotel, and frequently as part of complex mixed-use development and redevelopment and master planning projects nationwide. In addition to her broad background in CRE finance and development generally, Ms. Niver has had a career-long focus on affordable housing and community development, both as a real estate and commercial finance attorney, and formerly as an urban planner specializing in affordable housing finance and policy. She has extensive experience in community development lending, impact finance syndications and programmatic and policy issues related to affordable housing, and routinely provides legal advice to profit and nonprofit developers, financial institutions, investors, and community development entities engaged in all types of complex real estate development and financing transactions, specifically social impact investing and tax credit finance.

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Matthew Edward Schernecke
Partner
Parent: Hogan Lovells US LLP

Mr. Schernecke advises direct lenders, mezzanine investment funds, and venture capital investors in a variety of debt and investment transactions with borrowers of all sizes, types, and structures. He also counsels private equity clients and corporate borrowers on domestic and cross-border acquisition financings, out-of-court restructurings and workouts, bankruptcy matters, ESG and impact investment financings, and real estate financings. Mr. Schernecke leads transactions spanning diverse industries, including financial services, real estate, retail, life sciences, health care, technology, food and beverage, hospitality, film and music entertainment, media, and telecommunications.

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Description

The increase in extreme weather events in the U.S. and around the world has greatly impacted asset performance and real estate values. Commercial real estate lenders and investors have identified climate risk as a critical investment concern requiring them to develop a climate risk strategy as part of their overall business strategy.

Because climate-related risks are financial risks, lenders and investors must thoroughly assess a property or construction project prior to entering into any loan or investment transaction to mitigate their risk exposure. These efforts may include, among other things, reviewing risk ratings and conducting certain tests on a property like a structural test to ensure the property is not vulnerable to natural disasters.

Banks and lenders may also wish to employ more stringent underwriting standards that will likely include flood insurance and any other insurance deemed necessary by the lender as well as enhanced disclosure requirements. Lenders should also include more restrictive climate risk loan clauses which may include additional insurance coverage and longer policy terms, guarantees from a creditworthy source, and reserve funds to pay for climate-related damages and property value losses.

Listen as our authoritative panel discusses the impact climate risk has on commercial real estate lending and investing and the different ways lenders and investors can mitigate their financial exposure and liability related to such risks.

Outline

  1. Overview: climate risks in commercial real estate finance
  2. Property assessments, due diligence, and enhanced disclosures related to climate risks
  3. Underwriting standards for banks and lenders for loans secured by properties located in high risk areas
  4. Climate risk clauses in loan agreements
  5. Other key considerations and practice pointers

Benefits

The panel will discuss these and other key considerations:

  • What should lenders and investors know and understand about climate change and its impact on commercial real estate finance?
  • What are key considerations for lenders and investors when entering into transactions involving properties located in climate risk-prone areas?
  • How can banks and lenders mitigate their exposure to risk and liability when extending capital to properties that are vulnerable to climate risks?
  • What underwriting standards and loan document terms should lenders and banks employ for transactions involving high risk properties?