Mindset & the Future of Real Estate

Extraordinarily tight labor markets causing staffing shortages and the recent dominance of the delta variant make it a less-than-sure bet the seniors housing industry reverts to pre-pandemic vigor by the close of 2021. Still, there’s sun on the horizon — 31 NIC MAP Primary Markets reported an increase in occupancy over the second quarter—and many industry observers feel bullish about the seniors housing industry’s long-term health.

In construction loans, the lender advances a small portion (or none) of the loan at closing since the proceeds are intended to fund construction costs as incurred. The conditions for advancing funds are often complicated because there are three participants--the lender, the borrower, and the contractor--and in part, because actual costs may vary from the construction budget. Most construction loan agreements provide for shifting cost savings for one item to another item in the budget. Construction budgets will usually incorporate "contingency" to be applied by the borrower to pay for cost overruns for items in the budget, subject to certain conditions. Documents must provide for retainage for unforeseen costs to ensure the completion of the project. A construction loan is unique for title insurance because disbursements are made post-closing, and property increases in value with each disbursement. Title insurance must be in place to cover the loan amount as it is funded. Counsel to the lender must structure the loan to ensure the priority of advances and procure title insurance (including appropriate endorsements at closing) consistent with that priority. Also, the borrower will typically need to obtain lien waivers or lien subordination as disbursements are made. Listen as our authoritative panel discusses the construction loan funding process and the need for increasing title insurance coverage as funds are disbursed. The panel will discuss budgeting and construction draw provisions in loan agreements, future advance clauses, and other practices for preserving the senior position of the mortgage over mechanic's liens and the title endorsements to obtain at closing.

BIM-enabled FM is increasingly being adopted by building managers. It extends the value of BIM beyond planning, design, and construction of buildings. And ensures that post-construction facilities and maintenance management is highly efficient and collaborative.

Join Marcus & Millichap President & CEO Hessam Nadji and former Secretary of the Treasury, Lawrence H. Summers, for a LIVE webcast discussion on the economic factors including Federal Reserve policy, that will impact the commercial real estate market. Swarup Katuri, Managing Partner of Brookfield Asset Management, and Conor Flynn, CEO of Kimco Realty, will join the conversation as CRE industry leaders.