Construction Lending

Dickinson Wright attorneys represent lenders and borrowers in all aspects of commercial mortgage transactions. Our clients include state and national banks, life insurance companies, institutional lenders, including governmental subdivisions and agencies, Real Estate Investment Trusts (REITs), investors, developers, and loan servicers. We handle all types of lending matters, including conventional commercial mortgage loans, construction loans, sale-leaseback transactions, ground lease transactions, capital markets and commercial mortgage-backed securities (CMBS) loans, Fannie Mae and Freddie Mac multifamily and manufactured housing loans, bond and asset recovery, workouts, restructurings, and foreclosures. From preparation and review of the term sheet through closing and beyond, our attorneys address the legal and practical issues involved in each transaction.

Our attorneys have represented lenders and borrowers in thousands of construction loans totaling billions of dollars. These loans have been secured by a wide range of commercial properties, including professional buildings, industrial warehouses, self-storage facilities, apartments, manufactured housing communities, retail shopping centers, regional malls, hotels, nursing homes and assisted living facilities, and wind and energy facilities.

Members of the firm are active in finance-related organizations, including the Mortgage Bankers Association, the Commercial Real Estate Finance Council, the Mortgage Industry Standards Maintenance Organization, the American College of Mortgage Attorneys, and the Construction Lawyers Society of America. Our attorneys frequently give presentations and publish articles on commercial lending and related issues. We have also developed proprietary transaction management and document automation software that allows us to provide efficient, cost-effective service.

Representative Matters

• Represented a large financial institution in evaluating the validity and potential recovery of a $10 million claim by an industrial contractor arising from the construction and engineering of a paper mill.
• Advised a national lender on provisions for commercial loan documents involving construction projects and revised the documents to protect the lender’s interests.
• Represented a ground lessor in negotiating an intercreditor agreement that allowed financing to proceed for a combined office building and hotel project.
• Represented developers and contractors in negotiating payment terms and procedures with lenders, including the payment application process, documentation requirements, and the timing of construction draws.
• Represented a defaulting borrower in the workout of a $60 million construction loan.
• Represented a mezzanine lender that provided equity financing for a hotel and condominium project supported by a construction loan from a third-party lender.
• Successfully addressed lien validation issues under the applicable recording statute as amicus curiae before a state supreme court.