What's Now in Real Estate Finance (February 2026)

Topics from our February agenda included:

New York Brownfield Tax Programs 
Chris Manzer (Atlanta)

The team reviewed recent transactions involving the New York Brownfield Cleanup Program. The program has two primary components: (1) a state-regulated environmental remediation process, and (2) a related state tax credit tied to cleanup and certain development costs. From a lender perspective, key issues can often include the limited transferability of the credits, the need for experienced counsel if transferability is a priority, and the use of partial recourse or other structures to ensure credit proceeds are applied to loan paydown. The group also discussed timing considerations regarding when the credits are recognized, federal income tax treatment of credit proceeds, and distinctions between site preparation and tangible property credits. Recent deals reflect the growing use of the program and the importance of addressing the potential non-transferability of the credits early in the loan structuring process.

New ALTA/NSPS Standards for Surveys 
Justice Barber (Atlanta)

The team discussed the 2026 ALTA/NSPS survey standards (effective February 23, 2026). Additional resources will be circulated in the future, but two of the key updates are (1) a new Table A Item 20 that standardizes how encroachments are documented, promoting greater consistency across surveys, and (2) surveyor certifications may be extended to successors and assigns of the lender. Overall, the updates are intended to produce more uniform, reliable survey deliverables across transactions.

IMN’s Winter Real Estate Private Funds Recap
Dustin Lauermann (Los Angeles) and Stacy Paek (Los Angeles)

Several team members attended IMN’s Winter Real Estate Private Funds conference in Laguna Beach from January 20-22. Attendees noted a shift toward cautious optimism compared to last year, when federal tariff and tax policy led to a conference feeling of greater uncertainty.

Developers appear better positioned to manage construction cost volatility, with fewer surprise capital needs tied to materials pricing. Multifamily valuations remain strong in certain markets, including Phoenix, though higher vacancies and concessions continue to affect performance. Panelists also highlighted challenges for older multifamily properties, where rents have flattened while operating costs continue to rise, leaving many assets in need of capital improvements but with limited financing options.

Industrial and retail generated the most positive sentiment. Office remains challenged, though some jurisdictions, including Los Angeles, continue exploring measures to better facilitate office-to-residential conversions. Panelists also noted declining lender appetite for “extend and pretend” on troubled loans, with workouts becoming more complex as lenders themselves face greater leverage.

AI Resource Update
Kara Brooks (Atlanta)

Kara Brooks, senior manager on Seyfarth’s Legal AI Innovations team, discussed the firm’s ongoing efforts to integrate advanced research and drafting tools into real estate finance workflows, with a focus on improving efficiency in due diligence and document analysis. The update included observations on emerging use cases, evolving best practices, and areas where these tools have been most effective in supporting transaction teams. The discussion also highlighted continued refinement of internal processes as adoption increases across the practice.