Construction Financing
Benesch's Real Estate team guides borrowers and lenders through every phase of construction financing, from initial term sheet strategy to closing and post-closing administration. Our experience spans large-scale commercial developments across the United States, including mixed use, multifamily, retail, industrial, warehouse, office, hospitality and entertainment properties.
We structure, negotiate and document construction loans, bridge loans, mezzanine facilities, syndicated credit arrangements and credit-enhanced financings, aligning them with project timelines, capital stack requirements and long-term ownership goals. We also address key diligence and underwriting considerations, including title, survey, zoning, environmental and entitlement issues, along with public incentive programs and tax-advantaged components when relevant.
Our team works closely with project sponsors, capital partners and lenders to keep financing processes moving efficiently. When challenges arise, we develop practical solutions to preserve momentum, protect collateral value and drive projects toward completion and stabilization.
Experience
- Represented a nationwide private equity lender on a $66 Million loan to acquire and improve a 739 unit garden apartment complex.
- Represented one of the nation’s largest multifamily housing developers in a multiple-layered joint venture including a contributing landowner and a large, institutional investor and construction financing for the development of a $99+ million apartment community with a mix of market-rate and affordable units located in White Plains, New York. This complicated development included negotiation of a reciprocal easement agreement with an adjacent office owner for certain shared infrastructure and negotiation of certain affordable housing incentives through the county’s Industrial Development Agency.
- Represented one of the nation’s largest multifamily housing developers in the approximately $100 million debt and equity financing of a 440+ unit multifamily apartment complex in Pittsburgh, Pennsylvania, which involved a ground lease structure, negotiating new easements and amendments to an existing REA, a new $65 million construction loan, and a multiple-layered joint venture structure.
- Represented one of the nation’s largest multifamily housing developers in a joint venture and construction loan for the financing and development of an approximately $123 million 390-unit market-rate multifamily apartment development in Virginia in the Washington D.C. area.
- Represented one of the nation’s largest multifamily housing developers in a joint venture and construction loan for the financing and development of an approximately $80 million 354-unit market-rate multifamily apartment development in Maryland in the Washington D.C. area.
- Represented one of the nation’s largest multifamily housing developers in a joint venture and construction loan for the financing and development of an approximately $60 million 184-unit market-rate multifamily apartment development in Wakefield, Massachusetts.
- Represented one of the nation’s largest multifamily housing developers in a joint venture and construction loan for the financing and development of an approximately $59 million 331-unit market-rate multifamily apartment development in the Tampa, Florida area.
- Representation of the developer in the refinancing of a mixed-use residential and retail development in northeast Ohio, with an $80+ million CMBS loan.
- Lead counsel for a national private equity fund in structuring and deploying a total of more than $150 million of loans within a one-year time period, with each individual loan in the $1 million to $12 million range, to acquire, construct or refinance troubled properties across all asset classes including retail, hospitality, multifamily (low-income and market rate) and senior living, industrial and office.
- Representation of a national banking lender in a $75+ million construction loan for the rehabilitation and conversion of an office building into a residential rental apartment building in Cleveland, Ohio.
- Representation of an owner in the financing for the construction of its new headquarters office in a Chicago suburb.
- Representation of a national banking lender in an approximately $25 million refinancing of an industrial/office portfolio with properties located in several states throughout the country.
- Representation of RES Polyflow in the $185 million bond financing for construction of a new plastics conversion plant in Indiana.
- Representation of the lender in the financing for the construction of a market-rate townhome project in North Carolina.
- Represented a NYSE company in the refinancing of revolving credit facilities for two casinos in Atlantic City, New Jersey for $65 Million and $20 Million, respectively (represented the borrowers).
- Represented a national bank as co-lender on a $63.4 Million senior construction loan to finance construction of a 19 story 230 unit apartment tower atop an existing parking garage, with redevelopment of the garage and street-level retail space.
- Represent a nationwide private equity lender making bridge loans on development projects and distressed properties in major cities across the country with loans ranging from $12 Million to $36 Million.
- Represented a national bank in a $8.4 Million subordinate construction loan to bridge federal and state historic tax credits. Project was a $42 Million conversion of an historic office building into 123 apartments and 40,000 square feet of retail and restaurant space, using multiple tranches of debt and equity.
- Represented a national bank as co-lender on a $63 Million senior construction loan (documented as three separate loans) to finance the redevelopment of a 29 story office tower into a mixed use project that included a 156 key hotel, 104 unit class A apartment tower, retail space and parking garage. The transaction involved historic tax credits, port authority bond financing and multiple tranches of subordinate debt.
- Represented a national bank as co-lender on a $73 Million senior construction loan to finance the construction of a 20 story 280 unit luxury apartment building with retail space and a parking garage. The transaction involved port authority bond financing and multiple tranches of subordinate debt.
- Represented one of the nation’s largest national banks as the lead syndicator and arranger of construction financing for the development of an approximately $140 million residential apartment tower with ground floor retail space and a parking garage in Cleveland, Ohio, which included a vertical subdivision and multiple ground lease structure.
- Represented one of the nation’s largest multifamily housing developers in a multiple-layered joint venture including a contributing landowner and a large, institutional investor and construction financing for the development of a $48 million 130+ unit market-rate apartment building located in Jersey City, New Jersey.
- Represented one of the nation’s largest multifamily housing developers in a joint venture with a large, institutional investor and construction financing for the development of an approximately $51 million market-rate apartment building with retail located near Boston, Massachusetts.
- Represented one of the nation’s largest multifamily housing developers in the financing and development of a $51 million 145-unit market-rate multifamily apartment development with retail space near Boston, Massachusetts.
- Represented one of the nation’s largest multifamily housing developers in a multiple-layered joint venture including a contributing landowner and a large, institutional investor and construction financing for a $52 million 190+ unit multifamily apartment project in a mixed use development near North Andover, Massachusetts.
- Represented one of the nation’s largest multifamily housing developers in a joint venture and construction loan for the financing and development of an approximately $62 million 270-unit market-rate multifamily apartment development in Maryland near Washington DC.
- Represented one of the nation’s largest national banks as the lead syndicator and arranger of construction financing in Cleveland, Ohio.
- Represented one of the nation’s largest multifamily housing developers in a multiple-layered joint venture in Jersey City, New Jersey.
- Represented one of the nation’s largest multifamily housing developers in a multiple-layered joint venture in North Andover, Massachusetts.
- Represented one of the nation’s largest multifamily housing developers in the financing and development of a $51 million 145-unit market-rate multifamily apartment development with retail space near Boston, Massachusetts.
- Represented one of the nation’s largest multifamily housing developers in a joint venture in Boston, Massachusetts.
- Represented one of the nation’s largest multifamily housing developers in a joint venture and construction loan in Maryland.
- Represented a national bank in a construction loan for a single-tenant building located in Port Charlotte, Florida.
- Represented Canadian investors in the acquisition of a value-add multifamily apartment complex with ground floor retail located in Northeast Ohio and acquisition and renovation financing through a CMBS loan.
- Represented one of the nation’s largest multifamily housing developers in a multiple-layered joint venture.
- Represented one of the nation’s largest multifamily housing developers in a multiple-layered joint venture.
- Represented the developer in a multiple-layered joint venture and construction financing for a $80 million 330+ unit multifamily apartment development in Pittsburgh, Pennsylvania.
- Represented the developer in a multiple-layered joint venture and construction financing for a $48 million 360+ unit multifamily apartment development near Austin, Texas.
- Represented the lender in the $14+ million construction financing of a single-tenant office facility near Akron, Ohio.
- Represented a participating lender in a $20 million participation in a $65.5 million construction financing for the development of a multi-tenant retail shopping center near Pittsburgh, Pennsylvania.
- Represented the developer in the acquisition and construction financing for a $56 million 300+ unit multifamily apartment development in Cleveland, Ohio, including a $42 million senior syndicated construction financing and $12 million mezzanine financing.
- Represented the developer in the acquisition and financing, including a $47+ million construction financing, $12+ million mezzanine financing, Port Authority financing, EB-5 financing and a 1031 exchange.
- Represented the developer in a joint venture and $29+ million construction financing for a 300,000+ SF multifamily apartment development in north Texas.
- Represented the developer in a joint venture and $30+ million construction financing for a 320,000+ SF multifamily apartment development in Austin, Texas.
- Represented the developer in a $21+ million construction financing and $8+ million mezzanine financing for the development of a 200 unit multifamily apartment development in Dallas, Texas.
- Represented the developer in a $22+ million construction financing and $7+ million mezzanine financing for the development of a 290+ unit multifamily apartment development in San Antonio, Texas.
- Acted as lender's co-counsel in connection with a handful of the 35 sources of funds that were assembled to fund the $272 million initial phase of the Flats East redevelopment project in downtown Cleveland, Ohio.
- Advised and negotiated on behalf of national lenders on several construction and permanent loans ranging in size from $1 million to more than $100 million.
- Represented a regional financial institution in providing multi-million dollar construction loan to a developer for the construction of a mixed-use development.
- Represented a national financial institution in providing $11 million loan to a developer for construction of a multi-tenant regional shopping center.
Key Contacts
Articles and Presentations
Summer 2018
Landmarks Newsletter
Summer 2015
Landmarks Newsletter