Contributed By McGuireWoods LLP
Similar to financing in other States, acquisitions of commercial real estate in Virginia are usually financed through both debt and equity transactions. Installment sales and sale leasebacks are not commonly used for financing transactions. Sources of debt include commercial banks, insurance companies, investment funds and other lending institutions that provide term loans, bridge loans, lines of credit and construction loans. Loans are secured by liens on real estate and other related assets. Equity can come from various sources, including REITs, equity investors, funds and individual investors. Subordinate and mezzanine debt are also common in large real estate financing transactions.