Up, Up, and….AWAY! A common component in virtually all commercial real estate loan documents is the provision addressing late fees that kick in upon a borrowers’ failure to make timely payments. Recent Arizona case law has changed the enforceability of certain provisions regarding particular late fees. In 2017, the Arizona Supreme Court issued an opinion … More Up, Up, and… AWAY!
In My Opinion As a condition for making any kind of commercial real estate loan, lenders require a variety of assurances and representations from the borrower (and other key principals or guarantors) to verify that the borrower has the legal standing and ability to borrow (and payback) the loan. Beyond taking the borrower’s word for it, lenders … More In My Opinion
Feeling Committed Commercial real estate buyers using financing to acquire property often find themselves in limbo. Buyers are often required to spend substantial sums chasing a property (and assume a fair amount of risk) before knowing that their lender is absolutely committed to funding. Unfortunately, this market is not kind to financing contingencies (especially when … More Feeling Committed
Options on the Table Options to purchase real estate are back. Whether popping up in leases or in standalone agreements, options seem to be very a popular vehicle in today’s real estate market, with benefits for parties on both sides of the transaction. What is an option? In its most general terms, an option grants … More Options on the Table
Room For Improvement New space being leased in any office, retail, or industrial property will need to be tailored for a particular tenant. Alternations can range from relocating interior walls or partitions to full blown construction with all the trimmings. Like most lease issues, deciding who will bear the costs associated with the build-out and … More Room For Improvement
Commercial property owners brace for an uncertain future. With $814 billion in commercial real estate loans expected to mature by 2011, there is substantial concern among analysts that a series of commercial loan defaults is looming. In another attempt to loosen credit and extend commercial real estate lending, the Federal Reserve and Treasury Department announced … More Long Live the King
Investor’s Anti-Deficiency Deficiency Substantial changes to Arizona’s anti-deficiency law are coming. On July 10, 2009, Arizona Governor Brewer signed SB 1271 into law, which is effective September 30, 2009. This law will have a profound impact on developers and investors of Arizona’s residential real estate market. In the meantime, many questions have arisen about … More Investor’s Anti-Deficiency Deficiency