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Tag Archives: HVCRE

COMMERCIAL FINANCE 701 — The project equity morass

Ample equity is to project construction what grain is to whiskey. Equity can jumpstart a project and satisfy a critical lender financing requirement.  But just how much equity, from where, and at what price? Our hypothetical project is a 120-unit, to-be-constructed apartment complex on land under contract. Our developer has, wisely, formed a new single purpose entity, which we will ...

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COMMERCIAL FINANCE 701 — Real estate loans – HVCRE revisited

In the midst of all the recent investigations, pardons, Supreme Court rulings, and incessant breaking news, you might have missed a favorable change in federal banking law.  On May 22, Congress amended the Dodd–Frank Wall Street Reform and Consumer Protection Act (enacted in 2010), which revisions included significant tweaks to the High Volatility Commercial Real Estate (HVCRE) regulations governing commercial ...

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COMMERCIAL FINANCE 701: Basel III, HVCRE & real estate loans

  Sitting atop the Alps, Switzerland managed to eschew both World Wars, flout the fluctuating Euro, and fleece wide-eyed tourists with opened arms.  Of late, however, the multilingual country has exported more than chocolate: from Lausanne, the controversial Iranian nuclear treaty negotiations, and, more on point for us, from Basel, Switzerland, a series of confounding financial regulations innocuously referred to ...

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