Permanent Financing

The permanent-loan market has experienced steady activity. Owners are seeking to take advantage of historically low interest rates to lock in medium-to-long-term financing for stabilized or near-stabilized projects. In addition to traditional permanent lenders such as insurance companies and CMBS lenders, many commercial banks have entered the market in an effort to offset the run-off in their construction loan portfolios. Private equity funds and real estate investment trusts have also entered the market in an effort to seek relatively high returns. Non-recourse or limited-recourse financing with favorable structures are currently available.

Troutman Sanders’ lawyers represent banks and borrowers in complex, heavily structured permanent loan transactions. Our extensive experience covers the negotiation of “bad-boy” indemnities, approved leasing provisions, holdback terms and conditions, permitted transfer provisions and interest-rate hedging arrangements in order to achieve an appropriate level or risk and flexibility on behalf of our clients.

Representative Experience

  • Represented a financial institution in connection with a $40 million term loan to refinance two Marriott-operated hotels in southern California.
  • Represented a financial institution in connection with a $33 million term loan to refinance the Erwin Plaza Office Building in Durham, North Carolina, and provide financing for capital improvements, tenant improvements and leasing commissions.
  • Represented a financial institution in connection with a $51.6 million term loan to refinance a commercial office building in Tysons Corner, Virginia, and provide financing for tenant improvements and leasing commissions.
  • Represented a national bank, as agent, in connection with a $130 million syndicated term loan to refinance and provide lease-up and renovation financing for two office and retail buildings in Northern Virginia.
  • Represented national bank, as agent, in connection with a $130 million syndicated term loan to refinance and provide lease-up and renovation financing for two (2) office and retail buildings in Northern Virginia.
  • Represented national bank in connection with a $51.6 million term loan to refinance the 1850 Towers Crescent Plaza Building in Tysons Corner, Virginia and provide financing for tenant improvements and leasing commissions.
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