CRE Lending: Property Types, etc.
Course Number: Webinar
Course Code: n/a
Commercial and industrial (C&I) lenders know that non-financial factors such as the borrower?s industry, its competitive market, and its management team play a key role in the ongoing success of the business, as well as timely loan repayment. Commercial real estate (CRE) loans have similar non-financial factors or issues, including the type of property (similar to C&I industry risk), ability to successfully re-lease the property over the loan term (competitive market), and proper management and maintenance of the physical facility.
As banks continue to deal directly with CRE loans as a major portion of their loan portfolios, plus indirectly through income-producing or rental real estate holdings that affect customers, it is important to ?get beyond the numbers? and assess the qualitative or non-financial factors that influence CRE performance over time.
-Differentiating among property types ? key terminology and operating factors for multi-family, retail, office and industrial/warehouse
-Additional issues with owner-occupied and ?specialty? properties, such as hotels and nursing homes
-?Triple net? versus full service leases
-Overview of other common provisions in commercial leases, including
Reimbursement for common area maintenance (CAM)
?Go dark? clauses
Requirements placed on the tenant
Requirements placed on the landlord
Subordination, non-disturbance and attornment provisions
-Unusual or extraordinary lease provisions, such as building naming rights
-Re-lease and rollover risk
-Physical style risk and ongoing property management risk
-The concept of sponsorship
Audience: Commercial lenders, credit analysts and small business lenders, consumer lenders, mortgage bankers and private bankers; loan review specialists, special assets officers, lending managers and credit officers.