Construction loans have unique risks for both lenders and borrowers, especially in this volatile market. This Legal Update will focus on (1) how construction loans differ from traditional real estate financing for a performing asset, and (2) how lenders and borrowers hedge certain risks inherent in lending on an asset that is not yet cash flowing. Our panelists will discuss future advances, lien priority, balancing requirements, completion guarantees, carry guarantees, tender conditions and more, including some of the more material and highly negotiated provisions in construction loans.

Our three speakers today are Misty Sanford, Joseph Hernandez, and Lewis Goss II.

Misty Sanford is a partner in the Real Estate Department in Willkie’s Los Angeles office, where she serves as Chair, Real Estate – West Coast. Her sophisticated and broad-based real estate transactional practice involves all aspects of real estate, with an emphasis on loan workouts, public/private partnerships (PPPs), real estate financing (including CMBS), complex mixed-use developments, purchase and sale, joint ventures, environmental issues, land use, leasing and reciprocal easement agreements, which allows her to assist with the full lifecycle of real estate assets.

Joe Hernandez is a partner in the real estate department of the law firm of Bilzin Sumberg in Miami, Florida. Drawing on his prior experience as a banker and general counsel for a private equity firm, Joe counsels a variety of clients in negotiating and structuring complex commercial real estate transactions. He represents real estate developers, financial institutions, private equity firms, family offices and public entities in all phases of such transactions, with deals across the United States, Latin America and the Caribbean. He handles acquisitions, development, financing, leasing, joint ventures, and advises clients on raising capital for real estate projects. He also represents developers and investors in the area of condominium redevelopment, which oftentimes involves the bulk-acquisition of condominium units and the complex process of terminating an existing condominium.

Lewis Goss II is a partner in the Real Estate group of ArentFox Schiff in Washington, D.C. For 15 years, Lewis has represented banks, private debt and equity funds, insurance companies, and other institutional investors in a wide variety of commercial transactions, including: real estate acquisition, bridge, and construction financing; mezzanine, note-on-note, preferred equity, and other subordinate finance structures; syndications and intercreditor agreements; as well as loan restructuring, distressed assets, and workouts. Lewis has experience with both single-asset and large portfolio transactions with domestic and international borrowers and collateral. Additionally, Lewis represents developers and investors in their acquisitions, dispositions, and development of commercial real estate and infrastructure projects.

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