Al Valencia Featured in Law360's Coronavirus Q&A Series
Albert C. Valencia, Co-Chair of ECJ's Real Estate Department was featured in a recent edition of Law360's Coronavirus Q&A. This series includes law firm practitioners discussing ways the pandemic has impacted businesses and the legal environment.
In this article, Al shares his thoughts on challenges lenders are facing during the pandemic and difficulties surrounding the varying government regulations by location. He highlights that conservative underwriting has caused some challenges for commercial real estate financing. According to Al, "if you can get the loan, I think you're in good shape because interest rates are pretty competitive. The hard part is actually getting over the underwriting hump, if you will."
When asked about financing for borrower-side clients, Al points out that "we're ending up with much longer time frames for due diligence and closing" and anticipates this to be the trend moving forward. "[Lenders are] definitely taking a smaller loan-to-value [ratio] because you're just trying to make sure that there's enough equity in the property," said Al. They are looking at underlying assumptions and are looking closely to understand leases and ensure tenants are creditworthy.
Access the full interview, including more of Al's insights, here.