Land Banking

Holland & Knight's Land Banking Team provides comprehensive legal services tailored to the unique needs of our clients in land banking transactions. As a national law firm with a significant residential real estate practice, we offer sophisticated representation in connection with the acquisition, financing (debt and equity), entitlement, development and land banking of land entitled for residential and commercial purposes.

In 2003, the Financial Accounting Standards Board (FASB) issued Financial Interpretation No. 46 (Consolidation of Variable Interest Entities) (FIN 46), to provide guidance on the accounting for special purpose entities (SPEs) and variable interest entities (VIEs). Following the 2007-2008 financial crisis, a section of this interpretation, FIN 46(R), was amended and incorporated into FASB Statement 167.

Today, FASB Statement 167 continues to serve as a cornerstone in governing land banking practices, considering the widespread utilization of VIEs in such transactions. Compliance with FASB Statement 167 remains essential for navigating the complexities of the land banking landscape effectively. Our attorneys have represented some of the country's most prominent private equity funds, institutional capital and other financial institutions, land bankers, and public and private homebuilders in their land banking transactions, orchestrating monumental transactions and securing off-balance sheet financing for the creation of hundreds of thousands of single-family homes, condominiums and townhomes across the United States.

Operating nationwide, including in key "path of growth" areas such as California, Arizona, Texas, Nevada, North Carolina, South Carolina, Georgia, Maryland, Florida and New York, our Land Banking Team has handled hundreds of land banking deals. Leveraging our nationwide presence, comprehensive grasp of local markets and expansive legal resources across various practice areas, our attorneys have a wealth of experience in providing tailored solutions to clients across the country.

Our land banking experience includes:

• representing private equity funds, institutional capital providers and other financial institutions in joint ventures with land bankers and home builders for the formation of platform land banking joint ventures
• representing land bankers and home builders in finished lot and development land banking transactions, whether as "one-off" or platform deals, drafting and negotiating option agreements, construction agreements and ancillary documents, reviewing underlying due diligence materials (including development agreements, entitlements, financing district materials and covenants, conditions and restrictions) and helping to ensure compliance with local real estate laws, as well as federal and state tax regulations and securities laws
• representing developers in the structuring and formation of land banking platforms for use in connection with its master planned communities
• representing land bankers in connection with the financing of their land banking platforms, including mortgage and mezzanine financings, revolving line of credit facilities, note purchase facilities and synthetic credit structures

With a track record of success and deep understanding of these transactions, our Land Banking Team understands the importance of innovative financing structures in meeting the demand for housing. Our experience with land banking transactions, joint ventures and financings allows us to capture new entrants to the market and satisfy investor demand with confidence.

Representative Land Banking Transactions

Our experience includes representation of:

• a private equity fund in its finished lot and development land banking of residential developments throughout the U.S. for a top public homebuilder
• a private equity fund in the negotiation of a bespoke platform land banking venture, representing $550 million of committed capital, for a top public homebuilder and the fully customized financing of this platform
• a joint venture between an institutional real estate investor and a land banker in the land banking of more than $1 billion worth of residential land for top public and private homebuilders
• a joint venture in obtaining $500 million in revolving line of credit facilities for the joint venture's land banking platform
• a publicly held homebuilder in land banking transactions to finance the acquisition of land in California
• multiple joint ventures between an institutional real estate investor and various land bankers in more than 60 residential finished lot and development land banking transactions throughout the U.S. for top public and private homebuilders
• a private homebuilder in the land banking of approximately 330 lots for residential development in Flagler County, Florida
• a public homebuilder in the land banking of a townhouse development in Southern California
• an institutional real estate investor in the formation, negotiation and documentation of multiple joint ventures with land bankers focused on the acquisition, land banking and financing of land for residential development throughout the U.S.
• a New York-based financial services and credit management firm in providing approximately $500 million in land banking financing for the development of more than 5,000 homes for national homebuilders
• a California-based investment management firm in providing approximately $240 million in land banking financing for the development of 2,000 homes for national homebuilders, as well as in obtaining a $75 million credit facility for this platform