Kutak Rock LLP attorneys Mitch Padover, Joy Sullivan and Heather Fox of the firm’s Scottsdale office represented a non-traded real estate investment trust (REIT) in connection with a $71 million mortgage loan on a downtown Phoenix office building that is leased to Freeport-McMoRan for its corporate headquarters. The loan was structured through a commercial mortgage-backed securities (CMBS) financing.

The deal was particularly complicated as the borrower’s interest in the building consisted of a leasehold interest in an office condominium owned by the City of Phoenix. As part of the transaction, the borrower was required to obtain an addendum to its lease, as well as estoppels from the City of Phoenix and the condominium association. The Kutak Rock attorneys worked with outside counsel to efficiently obtain the lease addendum and estoppels. In addition, the firm assisted the REIT in the review and negotiation of the loan documents, as well as the closing of the transaction.