What can borrowers navigating loan renewals do to reach favorable solutions with lenders in the face of high refinancing costs?

SUSAN GRAHAM, REAL ESTATE PARTNER

“Be honest and forthcoming with your existing lender about your needs and your specific plan for the project. Offer cost-cutting measures and explain how you will reduce leverage over time. Be responsive to lender requests for more information and get the lender on your team. Concurrently, shop for alternative solutions with other lenders or equity providers.”

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STEPHEN LIESKE, REAL ESTATE PARTNER

“Don’t wait until the last minute. Explain to your lender why an extension makes sense for everyone, and be prepared to have to write a check for a potential loan pay-down and some additional reserves.”

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ANDREW DEMIRCHYAN, REAL ESTATE PARTNER

“Start the conversation early and do not wait until your maturity date. Come up with a solid business plan and proposal with respect to the continued operation of the property that shows the value you will continue to bring to the asset and the tenants, and propose mitigation measures for any localized market dynamics.”

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