What's Now in Real Estate Finance (May/June 2026)

Topics from our April agenda included:

Welcome New Team Members

The team welcomed Megan Vallerie, Real Estate partner in New York, and Kevin Marks, Real Estate senior associate in New York. Megan focuses her practice on complex commercial real estate transactions, representing lenders, borrowers, and institutional investors across financings, acquisitions, and structured debt and equity arrangements. Kevin works on a broad range of commercial real estate finance matters, representing both lenders and borrowers.

Legal Definition of Signatures in New York 
Luke Teresi (New York)

New York's General Construction Law §46 defines a valid signature broadly — encompassing handwritten, printed, stamped, photographed, and engraved marks — but the operative requirement is that the signature be made "with intent to execute or authenticate." In practice, however, technically valid and practically enforceable are not always the same thing. The 1971 case Sandymark Realty Corp. v. Creswell made this distinction clear, discussing that rubber-stamped signatures are insufficient for sworn verifications where they offer no assurance that the signatory personally applied the stamp, was present, or understood their legal accountability.

For notaries, handwritten signatures remain the gold standard, with any departure from that standard often demanding heightened diligence to confirm identity, presence, and intent. Ultimately, while the statute affords flexibility, practical enforceability turns on the type of document, the circumstances surrounding its execution, and the sound judgment of the professionals involved.

Guarantee Alternatives in Institutional Joint Venture Financings
Stephen Bush (Atlanta)

The group discussed the use of alternative credit support structures in institutional joint venture financings where traditional guaranties are not provided. In these situations, parties often seek to replicate key guaranty protections through a combination of negotiated instruments and tailored loan provisions. 

These structures must be evaluated in light of applicable law, including anti-deficiency regimes and, where relevant, cross-border considerations. Core guaranty protections such as payment support, timing certainty, and enforcement rights can be replicated or approximated through carefully structured alternative mechanisms within the loan documentation.

Cash Management Considerations 
Megan Vallerie (New York)

The team discussed cash management considerations in the context of DSCR-triggered cash traps, with a focus on how these provisions function when the activation mechanics in the loan documents are ambiguous. We also discussed the consequences of a delay in sending an activation notice to the lockbox bank, and “true up” payments for the excess cash that should have accumulated during the gap period.

Clear drafting is critical to avoid disputes over the commencement of the trap and smooth activation. There are also practical considerations for certain asset classes, such as hospitality where, because of seasonality and ongoing operational needs, borrowers may need to negotiate for access to trapped cash in order to pay operating expenses during low months.

MBA CRE Servicing Solutions Recap
Amy Simpson (Dallas) and Katie Schwarting (Charlotte)

A team of Seyfarth attorneys attended and presented at MBA's 2026 CRE Servicing Solutions Conference in San Diego, California in May. Conference discussions reflected an active market on both the origination and servicing sides, with capital continuing to flow, alongside expectations of increased defaults and loan workouts as extended maturities come due.

Overall sentiment was relatively muted, with those in the servicing industry neither overly optimistic nor overly concerned. While some uncertainty remains around interest rates and broader macroeconomic conditions, the general outlook at the conference anticipated a steady environment in which lenders and borrowers are actively managing both new originations and existing distressed assets.