We represent mortgage banking clients in new loan originations secured by multifamily apartment projects. These financings include loans made pursuant to the requirements of Fannie Mae and Freddie Mac multifamily finance programs, CMBS-rating agency requirements and the proprietary programs established by our financial institution clients.
Our work focuses mainly on permanent financing for the acquisition or refinancing of apartment projects and may include bridge loans and construction loans for new construction or rehabilitation of existing improvements. We handle transactions ranging from routine, single-property financings to multi-property, multistate pool transactions with aggregate loan amounts of more than a billion dollars.
We dedicate our time, attention and resources to an efficient and quality transaction regardless of loan size. Our lawyers work with all types of borrowers and with the largest private and public owners of apartment projects in the United States.
Affordable housing. The multifamily housing group is known for its experience in financing affordable multifamily housing transactions, which provide safe, decent and affordable housing for moderate and low-income families. Our lawyers have closed numerous first-of-their-kind transactions, including the following:
- DUS execution of a fully funded forward commitment for a tax credit transaction
- DUS loan involving Fannie Mae/FHA risk sharing
- Forward commitment for the credit enhancement of tax-exempt bonds, where the bond proceeds were used for new construction
We understand the broad view and the details inherent in each affordable-housing transaction. We regularly handle deals involving low-income housing tax credits (LIHTCs), the credit enhancement of tax exempt bond transactions, the direct purchase of tax exempt bonds, subsidized subordinate debt and grant programs, Section 8 HAP contracts, real estate tax abatements and nonprofit borrower entities. Our lawyers know the requirements of federal subsidy programs and are in regular contact with the state subsidy programs and state agencies.
Conventional multifamily finance. Lawyers in the multifamily housing group have represented mortgage banking clients in more than 12,000 conventional multifamily finance transactions, including more than a thousand annually in 2012 and in 2013. The scope of our work includes real-estate due diligence, borrower structure issues and legal opinions.
We handle state-specific requirements affecting title-insurance policies or involving consolidating, amending and restating existing indebtedness to help a borrower minimize recording taxes. We also provide services on a wide range of issues requiring special analysis, including the following:
- Preferred equity
- Mezzanine debt
- Ground leases
- Mixed-use projects with significant commercial tenants
- Historic tax credits
- Student housing
- Easements for access
- Phased properties
- Fractured condominiums
Freddie Mac CME and commercial mortgage-backed securities (CMBS) financings necessitate special attention to the IRS code and regulations that go well beyond those associated with the underlying real estate. Such financings include single-purpose entity (SPE) bankruptcy remote entities, non-consolidation legal opinions, lock-boxes, real estate mortgage investment conduits (REMICs) and many others.
Multistate pool financings. We are counsel of choice for large multistate, multi-property financings because of our experience, efficiency and unmatched capacity. We provide services related to cross-collateralized and uncrossed pools, credit facilities, negotiated, seniors housing and bond-credit enhanced transactions. These transactions have unique dynamics and require a different level of sophistication and teamwork than single property transactions.
Seniors housing. Our practice includes a significant volume of seniors housing transactions, even at times when the financing market has been relatively quiet. We collaborate with our real estate finance group to support balance-sheet financing transactions and financings structured for purchase by one of the GSEs. We understand the unique ownership, operating and management structures, licensing laws and applicable legal opinion requirements. We are also familiar with the large regional and national companies that operate and manage these properties.