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Well, that’s a very, very important aspect and in many ways, first of all the likelihood of success as to how the deal’s going to work out in the long term and how long things are going to take. The more complicated the capital structure, the harder it is to put in place in a short period of time, the more opportunity there is for one of the parties in the capital structure to cause a disruption and cause things to unravel. And remember, all the capital that’s coming to the table has to show up at the period of time between the contract signing and the closing. So, within a 30- or 60-day period, which is typical today, you’re putting together your mortgage financing, your mezzanine financing, all your equity partners, and you have that period of time to put everybody together to get all the documentation done and to get them to fund at the closing. So, that’s the most challenging part of any large transaction today.
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New York real estate attorney Robert Ivanhoe of Greenberg Traurig discusses the capital structure of real estate development.