Commercial Real Estate Loans 101: Loan Structures and Facilities, Documentation, Advising Borrowers and Lenders
Course Details
- smart_display Format
On-Demand
- signal_cellular_alt Difficulty Level
Beginner
- work Practice Area
Real Property - Transactions
- event Date
Friday, June 28, 2024
- schedule Time
1:00 p.m. ET./10:00 a.m. PT
- timer Program Length
90 minutes
-
This 90-minute webinar is eligible in most states for 1.5 CLE credits.
This CLE webinar will provide an introduction to commercial real estate loans. The panel will review the differences between commercial and residential real estate loans, how commercial real estate loans work, the types of commercial loan structures and facilities available, and financing considerations from the perspectives of both the borrower and lender.
With a strong background working in nearly all aspects of real estate in California – from property management, residential and commercial real estate transactions, to real estate development and preservation work – Mr. Demirchyan skillfully aids clients in navigating complicated and ever-changing real estate laws. He represents developers, owners, and financial institutions in complex commercial real estate transactions, including secured lending, commercial leasing, acquisitions, dispositions, and Mills Act matters. Prior to joining the firm, Mr. Demirchyan served as the Deputy White House Liaison for the U.S. Department of Housing and Urban Development.
Commercial real estate loans are primarily secured by real estate and related assets of the borrower and are usually obtained from banks, insurance companies, or other institutional lenders to acquire, develop, upgrade, rehabilitate, refinance, or operate a commercial real estate venture.
The terms of a commercial real estate loan vary greatly and depend on the type of loan, lender, property financed, and the borrower's goals and business objectives. The most common types of commercial real estate loans are permanent loans, bridge loans, commercial construction loans, and conduit loans.
There are several significant differences between commercial real estate loans and residential loans, but generally, commercial real estate loans are focused on income generation and have higher interest rates, shorter loan terms with amortization periods that are often longer than the term of the loan, larger down payments, and in some cases the borrower will be required to provide a personal guarantee.
The commercial loan package that secures and provides evidence of the loan contains extensive documentation, including loan agreements that outline the structure and obligations of the parties, promissory notes, mortgages, deeds of trust, assignments of rents and leases, financing statements, environmental indemnity agreements, guaranties, subordination, non-disturbance and attornment agreements, estoppel certificates, and other ancillary documents.
Listen as our authoritative panel provides an overview of commercial real estate loans and examines key considerations when representing borrowers and lenders in these transactions.
- Overview of commercial real estate loans
- Commercial real estate loans vs. residential loans
- Understanding the financial terms of the loan and what's negotiable
- Types of commercial real estate loan structures and facilities
- Financing and loan structure considerations from the perspective of both the borrower and lender
- Loan documentation
- Key takeaways
The panel will review these and other relevant issues:
- What are the differences between a commercial real estate loan and a residential loan?
- What are the common types of commercial real estate loan structures and facilities?
- What documents are typically included in a commercial loan package?
- What are the key financing considerations from the perspective of both the borrower and lender?
