The real estate finance industry has experienced extreme changes in the past eighteen months. The credit crisis and subsequent economic recession have resulted in a severe tightening in the real estate finance market. As a result, the few banks that are still providing financing secured primarily by real estate are able to be far more selective in project selection. Some of these lenders have greatly increased their commitment to providing financing to developers of green buildings. One prominent source of funds has been from Wells Fargo & Company, which has provided more than $2 billion in financing secured by green real estate. As the world financial headquarters has shifted from Wall Street to Washington, D.C., many commentators are expecting that green building will be a common condition of allocation of federally funded real estate projects whether in the form of direct subsidies or grants or public/private partnerships. This article will briefly examine a small portion of the unique legal risks that should be considered by lenders and property owners and developers in regard to obtaining financing for green buildings. It will specifically focus on ways lenders should attempt to mitigate risk through a basic understanding of green building, the careful examination of leases, construction documents and loan document covenants.
Despite the gloom on Wall Street, an investment bank focusing entirely on green technology is on track to double its revenues by 2009.
The program is offered through NYSERDA and offers interest rate deductions on loans supporting energy efficiency improvements to real property.
Huntington, Long Island has approved a LEED-based financial incentive program to encourage local developers in building green.
The Green Building Finance Consortium has released an important critique of the recent CoStar study that touted the financial performance (sale and rental premiums) of LEED- and Energy Star-rated buildings.
A new program will provide over $100 million towards financing solar power systems across the state of New Jersey.
North America’s first completely green Real Estate Investment Trust could soon become a reality.
It might not look like it on paper, but New York City’s clean tech industry has a promising future for attracting venture capital.
Following up on yesterday’s Monday LEEDoff, an article on the cover page of this week’s edition of Crain’s ominously noted that “[t]he credit crunch [stemming from the subprime meltdown] is paralyzing the New York real estate market. In the past few weeks, financing for almost all large commercial and residential projects in the city has […]
Over the past couple of weeks, it’s been impossible to ignore the economic doomsday scenarios that pundits have been tossing about in the wake of several high profile bankruptcy declarations by subprime lenders like American Home Mortgage (as well as the $11.5 billion loan obtained by Countrywide Financial to bolster its cash reserves). So, should […]