What's Now in Real Estate Finance (March 2025)

Topics from our March agenda included:

C-PACE Update
Dan Evans (New York) and Jay Wardlaw (Atlanta)

Andy Elliot of Nuveen joined the group to discuss Nuveen’s C-PACE lending platform and emerging trends and opportunities in that space.

Market Trends in Floating Rate Loans 
Chris Manzer (Atlanta)

As we are seeing a warming market for floating rate construction loans, our Real Estate Finance team discussed current trends in floating rate loans. There appears to be more active negotiation of the allocation of liability between lenders and borrowers as it relates to the lender’s ability to recover breakage costs, costs of new regulatory requirements, and full monthly interest on the loan when a loan prepayment is made outside of scheduled payment dates.

We discussed various approaches to resolving these issues but, given the relative lack of activity over the past two years in the floating rate construction loan market, it remains uncertain as to whether the trends are becoming more advantageous to borrowers today.

Negotiation Trends 
Dan Evans (New York)

The group had a wide-ranging discussion on various trends in deal structuring and document negotiation in light of the recent surge in new transaction volume across numerous practice areas. Among other things, we discussed recent bankruptcy court decisions pertaining to structuring bankruptcy remote entities and hot topics in guaranty and covenant negotiations. Also discussed were ongoing distressed loans and trends and projections for the differing paths such deals are starting to take.