Notable Matter · 2022

Ground Lease and Construction Financing for a Mixed-Use Development

Structured the ground lease and $85 million construction financing for a mixed-use residential and retail development.

Represented a regional developer in structuring a long-term ground lease and arranging $85 million in construction financing for a mixed-use residential and ground-floor retail development. The engagement included negotiating the ground lease’s rent-reset and leasehold-mortgage provisions, and coordinating between the construction lender and the ground lessor on subordination terms.

The project’s financing closed on schedule despite a mid-construction interest rate shift, which the real estate group addressed by renegotiating a rate-lock extension without a change to loan covenants.

$85M

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