FSPM Assists with Restructuring Capital Stack

FSPM’s attorneys represented the sponsor of an apartment project previously constructed by a developer entity (of which the sponsor, our firm’s client, is the managing member) in connection with that entity’s Q1 2024 restructuring to obtain additional needed capital. Under the sponsor’s guidance and with FSPM’s assistance, the developer entity (i) formed two new special purpose DE limited liability companies, (ii) conveyed its completed and operating apartment project to one of those two new LLCs, and (iii) transferred its membership interest in that new project-owning LLC to the other new LLC, (iv) with its mortgage lender, converted the previously funded project construction loan into a term mortgage loan to the new project-owning LLC, and (v) obtained additional needed capital in the form of both a new mezzanine loan secured by membership interests in the new project-owning LLC and an infusion of additional preferred equity into the original developer entity.