Commercial Real Estate Financing Transactions (FL)

Summary

Virtually every investor in commercial real estate will from time to time enter into a commercial real estate loan transaction. Common types of properties which are the subject of commercial real estate loans include office, retail, and industrial properties. The properties may be leased by the owners to tenants, may be owner-occupied, or occasionally will be a combination thereof. The loan is generally for the purpose of financing the acquisition of the real estate or to refinance an existing loan. A refinance may be for the purpose of obtaining a lower interest rate, taking a portion of the borrower's equity out in cash, or to replace a loan which has matured. In a typical commercial real estate loan transaction, the real estate will serve as the primary collateral for the loan. For purposes of this discussion on commercial real estate loans, the author is primarily focusing on non-construction commercial real estate loans (i.e., term or "permanent" loans), although much of the ...