In this session, Dale Warner, COO of Realvolve, takes you through some of the hallmark SaaS strategies that Real Estate Professionals can apply to their own businesses to drive revenue, increase efficiency, and better manage their relationships with a real estate CRM.
In the last 18 months, seniors housing communities have been faced with many challenges, including higher operating expenses, staffing shortages and new requirements for infrastructure upgrades. As a result it has never been more important to reduce expenses and keep residents happier and more comfortable in their homes. Smart thermostats are a perfect solution. Leveraging the intelligence of these powerful devices will lead to savings in operational costs and energy usage through features such as remote scheduling and occupancy detection.
Mezzanine financing allows borrowers to obtain financing in addition to a mortgage loan, but mezzanine loans add complexity, with additional documents, legal opinions, and third-party reports. Mezzanine lenders require separate consent rights for various actions by the borrower, and restructuring a nonperforming loan is especially problematic given the diverging interests of the mezzanine and mortgage lenders.
Since the mezzanine lender's security interest is in the borrowing entity rather than the property, it must conduct entity-level diligence, including analyzing potential claims and agreements entered into by the property owner. Existing contracts and licenses might contain restrictions on transfer--the pledge securing the mezzanine loan or any foreclosure of the pledge could violate such limits.
The mezzanine loan agreement should track the mortgage loan agreement, with mortgage loan representations recast to refer to the mezzanine borrower and the mortgage borrower. The mezzanine borrower and the mortgage borrower should be required to comply with entity-level covenants and property-related covenants.
The mezzanine borrower's obligations are secured by a UCC pledge of equity interests in the property owner. The pledge can be perfected under Article 8 of the UCC. The mezzanine borrower's ownership interest in the mortgage borrower must be certificated so the mezzanine lender can take physical possession of the membership certificates. The operating agreement should also include Article 8 opting-in language.
Listen as our authoritative panel discusses the nuances of mezzanine financing.
S&P Global Ratings
They discussed our recent reports on the fast growing flexible space segment in office real estate and our ratings on WeWork Co.