Construction Financing

Construction Financing Services

Acquisition & Development Loans

• Structuring land acquisition financing
• Development-phase lending documentation
• Entitlement and zoning-related financing coordination
• Multi-phase project structuring

Construction Loan Documentation

• Drafting loan agreements, notes, and security instruments
• Mortgage and deed of trust preparation
• Personal and corporate guarantees
• Cross-collateralization and intercreditor agreements

Draw & Disbursement Oversight

• Structuring draw schedules and milestone funding
• Lender protections tied to construction progress
• Inspection and certification requirements
• Retainage and holdback planning

Lien Priority & Risk Mitigation

• Mechanic’s lien risk analysis
• Priority planning between construction lenders and contractors
• Title review and endorsement strategy
• Subordination and intercreditor coordination

Workout & Project Stabilization

• Covenant breach and delay response strategy
• Forbearance agreements
• Completion guarantees
• Enforcement and collateral recovery planning

We structure construction financing transactions based on our deep experience in creditors rights enforcement. This ensures that lender protections are clear and aligned with project realities.

Who We Represent

Our Construction Financing practice represents:

• Commercial banks and regional lenders
• Private credit funds and construction lenders
• Real estate owners and developers
• General contractors and project sponsors
• Institutional investors
• Joint venture development entities
• Infrastructure and specialty project owners

We represent both lenders and borrowers, giving us practical insight into risk allocation and negotiation leverage in construction finance transactions.

Industry Verticals Served

We provide construction financing counsel across various verticals within the construction indusstry including:

• Commercial real estate development
• Mixed-use and multi-family housing
• Retail and hospitality projects
• Industrial and logistics facilities
• Government and public infrastructure projects
• Healthcare and institutional facilities
• Franchise development portfolios
• Public-private partnership (P3) projects

Industry vertical familiarity strengthens our ability to anticipate regulatory, permitting, and lien-related complications.

Construction Financing FAQs

What makes construction financing different from traditional commercial lending?

Construction financing involves phased funding tied to project milestones, lien priority management, contractor payment coordination, and greater performance risk. Loan agreements must account for delays, cost overruns, and completion guarantees.

How are lenders protected against mechanic’s liens?

Lenders protect against mechanic’s lien exposure through title insurance endorsements, draw controls, lien waivers, retainage requirements, and contractual subordination agreements. Proper structuring preserves priority over contractor claims.

What is a construction draw schedule?

A construction draw schedule outlines how loan proceeds are disbursed in stages as project milestones are completed. Legal documentation ensures disbursements are tied to verified progress and compliance conditions.

What happens if a construction project defaults?

In default scenarios, lenders may exercise remedies including foreclosure, enforcement of guarantees, appointment of receivers, or completion of the project. Proper loan structuring enhances recovery options and reduces enforcement complexity.