Stahl Cowen Real Estate Group Sees New Construction trending, and distressed transactions taper05/06/2015
Stahl Cowen’s real estate transactions group continues to see an increase in development and construction lending, as well as an increase in popularity in the self-storage and “micro-unit” arenas. Below is a snapshot of what’s keeping them busy:
- We represented a developer in obtaining a $10,000,000 construction loan to acquire and repurpose a parking garage into a 21-story self-storage facility.
- We represented a developer in the development of a 15-story, 144 unit mixed use building in Chicago’s south loop. The project was one of the first in the City to launch new construction residential since the downturn. The first closings were in the last week of April, and more than half the building is already under contract.
- We closed on the acquisition of a property in northwest Indiana which was subject to a triple net lease to CVS. A dry cleaner was formerly located on the property, which caused severe environmental problems. We were able to structure the purchase with indemnifications from the seller backed by environmental insurance so that the lender providing financing for the acquisition agreed to close despite the fact that environmental remediation was still on-going on the site.
- We represented a developer/operator of self-storage facilities in obtaining a $10,000,000 construction loan for a new facility to be constructed in the San Diego area.
- Closed on the purchase of property subject to a Dollar General triple-net lease in the Orlando, Florida area.
- We represented the developer in the acquisition of a commercial property on the North side of Chicago which the developer intends to demolish and construct an apartment building containing approximately 50 micro-units. We assisted the developer in negotiating a joint venture agreement with his initial investors and will provide similar assistance for his equity raise.
- We represented a bank in a forbearance agreement involving two loans of over $1,000,000 which altered the payment provisions under the loans and contained deed in lieu of foreclosure provisions if the borrower defaulted on the payments, so that the bank would receive deeds to the properties without the necessity of filing a foreclosure action.
- We completed two separate deed in lieu of foreclosure transactions for another bank involving seven different properties in the Chicago area.
- We represented a major REIT in obtaining a $39,000,000 loan for a shopping center in the Cincinnati area. The project is grocery store anchored with several mid-box stores, the development of which was funded, in part, by municipal bonds, so it is exempt from local real estate taxes and the tenants make payments in lieu of taxes. The loan was made by a major life insurance company.
- We completed the sale of a certificate of sale obtained by a lender in a mortgage foreclosure proceeding on a commercial building in Chicago to a third party purchaser, so that the lender did not have to take title to the property.