The steps in real estate development include: (1) identification of a property; (2) acquisition; (3) debt and equity capitalization; (4) feasibility analysis including obtaining the entitlements such as zoning and utilities; (5) construction of the project; and (6) absorption of the project whether through sale or leasing into the market. BB&C can counsel you through the entire process.
Property Identification. Our clients, their realtors and our firm all have the capability to locate and identify a property for development by the client. We have deep roots in the local market and often hear of real estate for sale or of investors seeking property to purchase and can make referrals after our clients give us permission.
Acquisition. BB&C can help clients through the actual acquisition of real estate. This process includes:
(1) Negotiation of the purchase agreements including representations and warranties of the parties, timeline and cost sharing of due diligence,
(2) Arranging for survey, environmental studies, title commitment and other due diligence items. With the volume of deals that we do, our relationships with these service providers can help with the timing and pricing on these services. With each of these reports we can help with
- Survey. We can help you select the Table A requirements to request from your surveyor depending on lending requirements and the scope of the development project. Once the survey is complete we can counsel you through clearing title issues such as gaps and overlaps in boundaries with neighboring properties and easements.
- Title Commitment. Schedule B to a title commitment contains the property specific exceptions to title such as easements, covenants, deed restrictions, planned development documents, mortgages, and preexisting options to purchase or other liens.
- Environmental Studies. Environmental studies may be Phase I or Phase II reports or simply soil samples where the parties know there was an underground storage tank. We can counsel you through issues that arise in environmental studies and any remediation required for issues found in the studies.
Financing. BB&C represents borrowers on all sizes of financing transactions including senior secured, subordinate or mezzanine financings and unsecured financings. We know the market terms for the documents making up a financing transaction including the following:
- Term sheets
- Loan Agreements
- Promissory Notes
- Security Agreements
- Subordination Agreements
- Guarantees
- Mortgages
- Assignments of Rents, Leases or Accounts Receivable
- Intercreditor Agreements
- Landlord Waiver
- Personal Guaranty Agreements
- Pledge Agreements
- Deposit Account Control Agreements
- UCC filings
Feasibility and Entitlements. We have experience in gauging the interest and feasibility of projects and we often deal with the governing bodies and other interested parties such as the area plan commission, county commissioners, city councils, public and private utility companies, state highway department, drainage board, other checkpoint agencies, neighbors, and home owners associations.
Construction. During the construction process BB&C can counsel you through:
(1) Drafting and negotiating your contract with a general contractor, construction manager, or if you are self performing the contracts with your subcontractors; and
(2) Obtaining lien waivers, resolving performance disputes and clearing mechanics liens.
Absorption. Once the project is developed and ready for occupancy, BB&C can help you either negotiate the sale of the project or the leasing of the project. Leasing includes building a budget for common area maintenance and understanding how the absorption process affects sharing of CAM, real estate taxes and insurance. We are able to provide practical counsel because we have practical experience in real estate matters.
Representative Clients and Projects:
- Renaissance Place
- Regal Center
- Rainey Brook
- Market West
- Columbia Center
For more information on this practice area please visit – Real Estate, Zoning & Land Use.
Attorneys:
- Andrew S. Gutwein
- Stuart R. Gutwein