Month: November 2019

Mixed Economic News from the Construction Industry

11/25/2019Nicholos, George M.

Navigating mixed signals in the construction industry; the AIA’s Architecture Billings Index through September 2019 indicates generally flat but encouraging business conditions. Dated – No. Important – Yes. Why? The Architecture Billings Index (ABI) is a composite index derived from monthly report surveys from member firms located throughout the country reporting on activity of “work-on-the-boards.”… Read more »

Guarantor Provisions to Negotiate in Non-Recourse Financing

11/08/2019Crouch, Richard J.

Many commercial real estate loans are “non-recourse,” which means in general terms that foreclosing on the real estate securing the loan is the lender’s sole remedy for a borrower’s failure to repay the loan.  The lender is generally prohibited from suing the borrower entity or any individual guarantors to recover the unpaid debt or any… Read more »

Preemptive Wordsmithing: Considering Future Alterations of Commercial Property at the Outset

11/07/2019Crouch, Richard J.

Borrowers often envision future alterations to enhance the economic value of the commercial real estate asset, when closing the initial loan. Such alterations can be in the form of capital improvements, tenant improvements, renovations, and/or expansions of the facility. At term sheet negotiation, the borrower should consider the long-term and short-term plans for the property,… Read more »