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.

Covered Topics:
-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
Cotenancy clauses
Requirements placed on the tenant
Requirements placed on the landlord
Estoppels
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.

Prerequisites: n/a

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Member Price: $265.00
Non-Member Price: $265.00
Textbook Charge: $0.00

Credits: 2.5 CE

Length: 2 hours

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