Loan Originations

Troutman Sanders represents mortgage banking clients in new loan originations secured by multifamily apartment projects. These financings include loans made pursuant to the requirements of Fannie Mae and Freddie Mac multifamily finance programs, CMBS-rating agency requirements, and the proprietary programs established by our financial institution clients.

Our work focuses on funding for the acquisition or refinancing of apartment projects and may include bridge loans and construction loans—either for new construction or the rehabilitation of existing real estate. We handle transactions ranging from routine, single-property financings to multi-property, multistate pool transactions with aggregate loan amounts of more than a billion dollars.

Regardless of loan size, we commit ourselves to facilitating efficient and quality transactions every time. Our attorneys work with all types of borrowers and with the largest private and public owners of apartment projects throughout United States. With offices on the East and West Coasts, we’ve closed deals in all fifty states and are well-versed in the differences and subtleties of individual jurisdictions.

Affordable Housing

The multifamily housing group is known for its experience in financing affordable multifamily housing transactions, which provide safe, decent, and affordable housing for moderate and low-income families. Our attorneys have closed numerous first-of-their-kind transactions, including:

  • DUS execution of a fully funded forward commitment for a tax credit transaction
  • DUS loan involving Fannie Mae/FHA risk sharing
  • Forward commitment for the credit enhancement of tax-exempt bonds, where the bond proceeds were used for new construction

We regularly handle deals involving low-income housing tax credits (LIHTCs), the credit enhancement of tax-exempt bond transactions, the direct purchase of tax-exempt bonds, subsidized subordinate debt and grant programs, Section 8 HAP contracts, real estate tax abatements, and nonprofit borrower entities. Our attorneys know the requirements of federal subsidy programs and are in regular contact with the state subsidy programs and state agencies.

Conventional Multifamily Finance

Attorneys in the multifamily housing group have represented mortgage banking clients in more than 8,000 conventional multifamily finance transactions since 2012, including more than 2,000 annually in 2015 and 2016. The scope of our work includes real-estate due diligence, borrower structure issues, and legal opinions. We also handle state-specific requirements that affect title insurance policies or involve consolidating, amending, and restating existing indebtedness to help borrowers minimize recording taxes. We provide services on a wide range of issues requiring special analysis, including the following:

  • Preferred equity
  • Mezzanine debt
  • Ground leases
  • Mixed-use projects with significant commercial tenants
  • Historic tax credits
  • Student housing
  • Easements for access
  • Phased properties
  • Fractured condominiums

Freddie Mac CME and CMBS financings require special attention to IRS codes and regulations that extend well beyond those associated with the underlying real estate. Our background in these types of complex transactions include: single-purpose entity (SPE) bankruptcy-remote entities, non-consolidation legal opinions, lock-boxes, real estate mortgage investment conduits (REMICs), and many others.

Small Loan Market

Aiming to meet the large demand for financing of smaller multifamily properties nationwide, the small loan market offers a streamlined loan process for property acquisition and refinancing through Fannie Mae and Freddie Mac for amounts up to $3 million and $6 million, respectively. As one of only thirteen firms approved by Freddie Mac to act as Small Balance Loan (SBL) Single Counsel, we’ve worked with numerous lenders on the origination and sale of hundreds of SBL loans for multifamily properties.

Manufactured Housing

Manufactured housing plays an important role in the U.S. housing market—offering a safe, quality, affordable housing alternative to traditional site-built construction. We’ve worked with Fannie Mae- and Freddie Mac-approved lenders to streamline the loan closing process on hundreds of manufactured housing deals throughout the country. In the last three years alone, we have handled more than 450 manufactured housing loan/servicing matters with a total loan volume of more than $3.23 billion. Our fundamental understanding of the manufactured home community sector and the requirements associated with the available financing platforms has enabled us to be considered counsel of choice for numerous multifamily lenders.

Seniors Housing

The ever-growing need for senior housing has enabled Troutman Sanders to sustain a large volume of assisted living and senior-focused property transactions. We collaborate with our real estate finance group to support balance sheet financing transactions as well as financings structured for purchase by one of the GSEs. We understand the unique ownership, operating and management structures, licensing laws, and applicable legal opinion requirements, and are familiar with the organizations that operate and manage these properties regionally and nationally.

Multistate Pool Financings

We are counsel of choice for large multistate, multiproperty financings because of our experience, efficiency, and unmatched capacity. We provide services related to cross-collateralized and uncrossed pools, credit facilities, seniors housing, negotiated, and bond credit-enhanced transactions. These transactions have unique dynamics and require a different level of sophistication and teamwork than single-property transactions.