Real Estate Private Credit and High-Yield
Our multidisciplinary Real Estate Private Credit and High-Yield Team advises a wide range of debt and equity capital providers, sponsors, investors, managers/general partners, advisors, underwriters, servicers, and trustees. We advise across a range of debt and equity transactions and programs and capital and investment structures involving real estate and real estate related assets, investments, and interests, as well as secondary market transactions.
We advise on programmatic investing as well as highly bespoke transactions including construction, bridge and permanent first mortgage financings, mezzanine and senior/subordinate loan transactions, preferred equity and joint venture investments, warehouse/repo facilities, subscription facilities, limited partner investments, and bond and tax exempt transactions. We also advise on distressed matters including restructurings and rescue capital transactions, distressed debt analysis and purchase and sale, receivership and bankruptcy matters, and enforcement actions. Our tax and fund formation lawyers also advise on REMIC and REIT-related and fund formation matters.
With offices throughout the United States, including in key eastern and western locations, we have a deep understanding of private—and public—investment markets combined with an “on the ground” understanding of a range of local and regional real estate markets and their distinct local laws, political climate, and market characteristics.
Our interdisciplinary group combines that regional perspective with national finance, real estate, business, litigation, bankruptcy and workout, and tax experience to provide comprehensive, solution-oriented counseling. We also assist clients in identifying and pursuing potential opportunities as well as connecting with strategic partners and counterparties.
- Representation of a private equity real estate investment fund formed by an affiliate of a national homebuilder and a global investment management firm for a $186 million acquisition and land development loan to a national development company. The loan financed the acquisition of a 759-acre land assemblage and provided funds to complete all necessary site work and lot improvements for the project, a 775-lot residential development in Loudoun County, Virginia. The lots were under contract for sale to three national homebuilders upon completion of improvement of the lots on a rolling quarterly takedown schedule. The representation included assisting in the structuring of the transaction and then drafting and negotiating all relevant loan documents. These included a highly structured completion guaranty and subordination agreements between our client and each of the national-homebuilder purchasers of the lots as well as an intercreditor agreement with the seller who provided seller financing secured by a portion of the project.
- Representation of a private equity real estate investment fund formed by an affiliate of a national homebuilder and a global investment management firm for a $52 million refinance and land development loan. The loan refinanced an existing development loan and provided funds to complete all necessary site work and lot improvements for the project, a 540-lot residential development in suburban Philadelphia. The lots were under contract for sale to another national homebuilder upon completion. The representation included assisting in the structuring of the transaction and then drafting and negotiating all relevant loan documents. These included a highly structured completion guaranty and a subordination agreement between our client and the national-homebuilder purchaser of the lots.
- Representation of a private mezzanine loan equity fund in the purchase of various mezzanine loans secured by 100 percent of the ownership interests in various entities owning and operating hotels and retail shopping centers.