Understanding Mezzanine Loans/Preferred Equity in Real Estate- AUDIO WEBCAST
July 2018
Understanding Mezzanine Loans/Preferred Equity in Real Estate
Access Timely Topics and National Experts with CBA-CLE 1-Hour Audio Webcasts
Program Description
Mezzanine loans and preferred equity in real estate are “equity gap” fillers. Lenders generally require borrowers to provide a certain ratio of equity to the overall value of the project. If the borrower is unwilling unable to provide additional capital, and the lender still wants to make the loan, they often turn to mezzanine loans and preferred equity to bridge the gap. Mezz loans and preferred equity, to varying degrees, have characteristics of debt and equity. These equity gap fillers are essential to many real estate transactions but they are difficult to plan and draft. This program will provide you with a real world guide to the economics of mezz loans and preferred equity, drafting the most important provisions of these instruments, and planning for their use in commercial real estate transactions.
- How mezzanine loans and preferred equity fit into the capital structure of commercial real estate
- Economics of “equity gap” filling instruments
- Reviewing/drafting key provisions of mezzanine loan documentation
- Determining and drafting right incentives for preferred equity versus common equity
- Tradeoffs for developers and sponsors of using one or the other instrument
- Risks and traps of using these equity gap fillers
- Alternatives to mezz loans and preferred equity
Faculty:
Richard R. Goldberg is a retired partner, resident in the Philadelphia office of Ballard Spahr, LLP, where he established an extensive real estate practice, including development, financing, leasing, and acquisition. Earlier in his career, he served as vice president and associate general counsel of The Rouse Company for 23 years. He is past president of the American College of Real Estate Lawyers, past chair of the Anglo-American Real Property Institute, and past chair of the International Council of Shopping Centers Law Conference. Mr. Goldberg is currently a Fellow of the American College of Mortgage Attorneys and is a member of the American Law Institute. Mr. Goldberg received his B.A. from Pennsylvania State University and his LL.B. from the University of Maryland School of Law.
Each program will run from 11:00 a.m. to 12:00 p.m. M.T. (60 minutes each).
Location Information
Webcasts - live from your computer
1900 Grant Street, Suite 300
Denver, CO 80203
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1900 Grant Street, Suite 300
Denver, CO 80203
Registration Fees
| Non Member | $69.00 |
| CBA Member | $49.00 |
| CLE ELITE Pass Holders | $0.00 |
- General Credits: 1.00
- Ethics Credits:
- EDI Credits:
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Access Timely Topics and National Experts with CBA-CLE 1-Hour Audio Webcasts