Commercial Real Estate

The Short Guide to Short-Term Rentals: Richmond, VA Edition

07/14/2020O'Dea, T. Duggan

Every day, short-term rentals play host to international visitors around the world. Whether for business or pleasure, short-stay accommodation websites like AirBnB.com, HomeAway.com, Tripping.com, and more have replaced traditional motel and hotel stays for many travelers of all ages. Naturally, because this type of lodging is coordinated by individuals and can generate substantial income, state… Read more »

Lease Issues in the COVID-19 Environment [Part 2]

06/19/2020Crouch, Richard J.

The COVID-19 crisis has significantly impacted the ability of parties to satisfy their respective obligations under their commercial leases.  As mentioned in Part 1 of this series, many parties are discovering that the language of force majeure clauses often lacks the specificity to adequately address this unique situation.  Part 2 of this series explores the… Read more »

Lease Issues in the COVID-19 Environment [Part 1]

06/19/2020Crouch, Richard J.

In the current COVID-19 crisis, attorneys are receiving numerous questions from landlords and tenants, as to their respective contractual obligations under their commercial leases.  Tenants are carefully analyzing the provisions of the lease to determine if any provisions therein could excuse or delay performance, particularly as it relates to the obligation to pay rent.  This… Read more »

Loan Issues In the COVID-19 Environment

06/04/2020Crouch, Richard J.

In the current COVID-19 environment, many borrowers are asking whether the government will grant borrowers any relief from payment obligations under their commercial loans. There is a general reluctance of governmental authorities to interfere with private contracts, which would include most loan documents. Accordingly, loan payments are contractual obligations for which borrowers will generally remain… Read more »

Completing Commercial Real Estate Transactions in the COVID-19 Environment

business

06/04/2020Crouch, Richard J.

How do I get my commercial real estate transaction closed in the COVID-19 environment?  Many transactions are at a standstill, particularly if lenders are overwhelmed or are having difficulty underwriting loans with economic conditions in a state of flux.  However, for those deals past the due diligence period and near closing, it may be possible… Read more »

COVID-19, Leasing, and Force Majeure Clauses

government contract legal advice

03/26/2020O'Dea, T. Duggan

To date, COVID-19 has led to the forced closures of many businesses and commercial spaces worldwide, both temporarily and permanently. While some can adapt and continue to work in safe numbers or controlled environments, others have been left with no alternatives, resulting in unemployed and unproductive workers and workspaces. So, what does this mean for… Read more »

Fannie Mae and Freddie Mac will grant mortgage forbearance for Borrowers who suspend evictions for renters in multifamily properties with loans backed by Fannie Mae or Freddie Mac

03/26/2020King, Ray W.

The Federal Housing Finance Agency announced that Fannie Mae and Freddie Mac will offer multifamily property owners mortgage forbearance with the condition that they suspend all evictions for renters unable to pay rent due to the impact of coronavirus (“COVID-19”). The eviction suspensions are in place for the entire duration of time that a property… Read more »

Pre-laying Foundation for Lender Consent to Future Leasing Activity

commercial building

03/05/2020Crouch, Richard J.

No landlord wants to potentially lose a financially viable tenant merely because the landlord’s lender delayed in approving the proposed lease.  Accordingly, it is important to negotiate certain parameters into the loan documents, under which the landlord’s lender pre-approves leases that satisfy certain predetermined criteria. Lenders are often receptive to language stating that only a… Read more »

Anticipatory Drafting: Documenting the Release Parcel on the Front End

buildings

03/04/2020Crouch, Richard J.

Borrowers, at the initial loan closing of an acquisition of investment real estate, often have plans to later develop and/or convey a smaller portion of the real estate collateral.  However, depending on the size and nature of the lender, and the importance of the subject parcel, it may be expensive and/or time consuming to obtain… 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 »