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Commercial Real Estate Development Project Toolkit
Practical Law Toolkit w-018-5277 (Approx. 21 pages)
Commercial Real Estate Development Project Toolkit
by Practical Law Real Estate
| Maintained • ExpandCalifornia, Florida, Georgia...Illinois, Massachusetts, New Jersey, New York, Ohio, Pennsylvania, Texas, USA (National/Federal) |
Resources to assist counsel to developers, owners, investors, and lenders in a commercial real estate development transaction. This Toolkit contains resources highlighting the key issues in these transactions and providing guidance for drafting and negotiating key documents at every stage of a real estate development project, including land acquisition, permitting, construction financing, joint venture formation, and project documentation.
The development of a commercial real estate building is often a complex and lengthy process with many stages. These stages typically overlap chronologically, and counsel must coordinate them to ensure a seamless transaction. Although every development project has its own issues and nuances, most commercial real estate development transactions include similar steps. The general steps include:
- Identifying a suitable land site for the intended development.
- Conducting or managing the due diligence investigation.
- Drafting and negotiating the purchase and sale agreement.
- Understanding applicable land use regulations, environmental permitting, and other regulatory restrictions and obtaining all required regulatory approvals and entitlements.
- Drafting and negotiating:
- the loan documents for the debt financing;
- the joint venture documents for the equity capital for the project; and
- the project documents, including the architect's agreement and construction contracts, based on the project delivery system selected by the owner.
- Obtaining required building permits to start construction based on final plans and specifications.
- Closing title to the property.
This Toolkit contains continuously maintained Practice Notes, Standard Documents, Standard Clauses, and Checklists to help counsel manage the transaction from the preliminary planning stage through the commencement of construction.
Because certain aspects of a commercial real estate development transaction are also governed by the specific laws and customs of the state where the property is located, this Toolkit also provides resources designed to provide guidance to owners in out-of-state transactions where the parties' counsel may be unfamiliar with the laws and customs of a certain state.