Case Study | From Complexity to Success

Real innovation. In real estate—and more. At Bernstein Shur, our integrated approach plucked success from the jaws of complexity.

A leading real estate developer in Maine hoped to build new luxury apartments on an old, neglected piece of industrial property in South Portland – and asked Bernstein Shur to assist.

The project was unusually complex, requiring a broad, multidisciplinary approach to obtain financing, deal with environmental hazards on the site, and secure the support of the city.

A coordinated effort
Four of the firm’s specialized practice groups – Real Estate, Construction Law, Environmental and Natural Resources, and Municipal Law – worked with RiverPlace Development, LLC (an affiliate of Ram Management Group, Inc.) in the coordinated, practical-minded way that is a hallmark of Bernstein Shur.

First, we drafted and negotiated an option on the property and assisted RiverPlace Development in closing a sophisticated multi-million-dollar construction loan to finance the construction.

Innovative thinking
We also helped obtain a TIF (Tax Increment Financing) to finance environmental remediation at the site using funds that would otherwise have gone to pay a portion of the project’s future property taxes. This was the first TIF ever granted for a residential development in Maine. Bernstein Shur also reviewed the language of the VRAP (Voluntary Response Action Program) and suggested additional language to protect the developer against potential future state enforcement action for those matters covered by the VRAP.

Bernstein Shur reviewed construction contracts and, through its Monument Title Company affiliate, secured competitive rates for the property’s title insurance policies and assisted in obtaining permanent financing.

Planning ahead
Last, the firm helped the developer explore exit strategies for the future, including the drafting of a condominium regime prior to construction that will save the expense and complexity of undertaking a condominium conversion in the future.

Score one for Maine
The result? Maine’s state of the art luxury rental apartment community opened in 2003 and received an enthusiastic welcome from its neighbors. This innovative project brought together private and public resources to transform a formerly blighted site into one of the state’s premier real estate properties.

Real Estate Practice Group