BarbriSFCourseDetails
  1. keyboard_arrow_leftBack

Course Details

Course Information
  • smart_display Format

    On-Demand

  • signal_cellular_alt Difficulty Level

    Intermediate

  • work Practice Area

    Real Property - Finance

Date & Time
  • event Date

    Monday, March 4, 2024

  • schedule Time

    1:00 p.m. ET./10:00 a.m. PT

  • timer Program Length

    90 minutes

Credit Information

  • This 90-minute webinar is eligible in most states for 1.5 CLE credits.

$347.00
CLE
ALL

This CLE webinar will examine the benefits and risks of converting or repurposing distressed commercial property into residential space. The panel will discuss the legal and financing challenges and opportunities and how tax credits and government incentives can make conversion a viable option for certain properties.

Faculty

Stuart M. Saft
Partner, New York Real Estate Practice Group Leader, Co-Chair of Condominium Development and Conversion Team
Holland & Knight LLP

Mr. Saft has extensive experience in the development, financing, leasing, conversion-to-condominium and cooperative ownership, exchange, syndication, sale-leaseback, timeshare, restructuring, acquisition and sale of residential, commercial and hospitality property throughout the United States. Mr. Saft also represents borrowers and lending institutions in mortgage lending and workouts. He is the former chair of the board of directors of the National Cooperative Bank and the New York City Workforce Investment Board. Mr. Saft has written 44 books on Commercial Real Estate and more than 100 articles on real estate, economics and finance.

expand_circle_down Expand to View Full Bio expand_circle_up Collapse Bio
Hilary G. Atzrott Hamburg
Partner
Venable LLP

Ms. Hamburg works with clients in the drafting and negotiation of agreements related to the acquisition, development, and disposition of properties. Her practice encompasses the full spectrum of real estate services. She conducts zoning review for site acquisitions, drafts development agreements for the construction of projects, and drafts purchase and sale agreements for the acquisition or disposition of commercial properties. Ms. Hamburg represents landlords and tenants in leasing matters, negotiates easements and license agreements for major infrastructure projects, and creates declarations and by-laws for commercial condominiums. She has been a member of the New York City Bar Association Land Use Planning and Zoning Committee since 2015, and has served as secretary of the Committee since 2022. Ms. Hamburg also serves as a member of the Urban Land Institute.

expand_circle_down Expand to View Full Bio expand_circle_up Collapse Bio

Description

Office property vacancies are especially high in many of the country's metropolitan areas, and owners of office space have begun to unload their properties at heavily discounted prices--evidence that stakeholders believe the soft office space market is here to stay. While local rules, zoning laws, and other market factors can make converting office space into residential space complex and expensive, conversion is a viable option for some properties, especially where tax credits and local government incentives are available.

Commercial-to-residential (CTR) conversions have been an agenda item for many urban planners and public officials in leading markets across the county with many cities implementing programs to aid conversion projects via zoning changes, expedited permitting processes, and tax credits and other incentives. The CTR conversion trend has drawn the attention of the federal government as the Biden administration recently released a guidebook outlining different federal programs that could be used to assist projects repurposing vacant office space for residential use.

Even with government incentives, converting commercial property into housing is not always financially feasible. Local regulations can make it difficult to convert modern office buildings with deep interiors into residential properties. However, converting office and retail space into residential property might make sense when obsolescence is the alternative, or when an older building bears features that might be attractive to potential residential tenants, but not to modern office tenants.

Listen as our authoritative panel discusses the growing trend of CTR property conversions. The panel will examine the pros and cons of such conversions and analyze the financing alternatives available that can make these conversions a viable option for owners and investors.

Outline

  1. Converting distressed commercial property to residential: current market trends
  2. Legal and land use considerations with property conversions
    1. Zoning
    2. Covenants and conditions
    3. Use of amenities
    4. Lender/lien issues
    5. State laws governing fractionals and rentals
  3. Financing options for the CTR conversion
    1. Banks and other traditional lenders
    2. Private equity investors
    3. Tax credits
    4. Government incentives
      1. Biden administration's comprehensive guidebook
      2. HUD community development block grants
      3. Transportation Infrastructure Finance and Innovation Act financing
      4. Railroad Rehabilitation and Improvement Financing
      5. Opportunity zones
      6. Other government incentive programs
  4. Key takeaways

Benefits

The panel will address these and other key issues:

  • How has the distressed commercial real estate market prompted an increase in CTR property conversions?
  • How have changes to zoning and permitting processes in some of the larger commercial real estate markets aided property conversion projects?
  • What are the circumstances that make a CTR property conversion a compelling option for owners and investors?
  • How can property owners take advantage of federal and local governmental programs to help finance a CTR property conversion?