Real Estate Development

  • Escalating Environmental Due Diligence Costs Ahead?

    November 15, 2018

    Escalating Environmental Due Diligence Costs Ahead? In 2019, we may see an increase in due diligence costs associated with many commercial real estate transactions in Michigan. There is proposed legislation to impose government fees on customary environmental due diligence reports, as described below. Pending before the Michigan legislature is a bill (Senate Bill 943) that […]

  • New LUST Money Available to Fund Cleanups in Michigan

    November 2, 2017

    It’s a good time to move forward with leaking underground storage tank (LUST) cleanup work in Michigan.  Last week, a new law was enacted to create the Legacy Release Program (LRP) to reimburse eligible owners and operators for a portion of the cleanup costs for older, “legacy” releases. We have seen them many times: old […]

  • Vapor Intrusion: Afraid to Inhale?

    March 26, 2017

    That’s understandable, given the recent publicity regarding vapor intrusion (“VI”).  Local evacuations of residences and businesses, the installation of vapor mitigation systems by governmental agencies, a joint VI initiative announced by the Michigan Department of Environmental Quality (MDEQ) and the State Department of Health and Human Services, and the MDEQ budget request to fund a […]

  • Recent Legislation Improves Michigan Brownfield Program

    February 22, 2017

    (February 23, 2017) The “traditional” sources of funds for the development of real estate include senior debt and equity.  However, certain development projects would never launch without the use of additional funding mechanisms in the form of state or federal financial incentives.  These projects include sites with historic contamination, deteriorated infrastructure, and/or inadequate or obsolete […]

  • Reduce Risk While Raising Equity

    November 7, 2016

    (November 8, 2016) In the last blog post, we talked about senior debt as the primary source of development funds. Unfortunately for developers, senior debt is rarely sufficient to fund the entire project, and the next most common source of funding after senior debt is equity. Senior lenders will not close on the senior loan […]

  • Break Ground Using Senior Debt

    October 11, 2016

    (October 11, 2016) Real estate development generally is very capital-intensive and most developments are funded by a mix of capital types and sources.  Senior debt is usually the greatest percentage of the capital stack in real estate development,  and typically takes the form of a construction-to-permanent loan.  If the developer has not already acquired the […]