How should a sponsor select borrower counsel for a CRE loan closing?

What separates capable from generalist counsel

Institutional CRE finance experience: counsel should be able to name 5 to 10 recent comparable closings (similar loan type, similar size, similar lender category) without having to think. Generalist real-estate counsel often handles its first CMBS or agency closing on the borrower's deal, at the borrower's expense in time and cost.

Fee structure: flat or capped fee on routine closings is preferred over hourly. Range: $25K to $40K on routine $5M to $20M deals; $40K to $80K on $20M to $50M deals; higher on capital-stack or multi-property structures. Hourly engagements without a cap routinely overshoot.

Partner involvement: confirm the named partner will lead the engagement and be in the closing-week communications, not delegated to an associate three years out of law school. Lender legal will be senior; borrower legal needs to match.

Lender-side relationships: counsel that has worked across the table from the lender's outside counsel (or the lender's in-house team) closes more efficiently. Negotiation is faster and cleaner when both sides know each other's drafting style.

What good looks like in practice: counsel turns initial document comments within 5 business days, drives to redline-stage within 2 weeks, and clears the documents inside the closing checklist without surprise weekend work.

Avoiding adverse selection: do not select counsel based on the lowest hourly rate or the closest existing relationship if that counsel does not have institutional CRE finance experience. The cost of inexperienced counsel typically shows up in slipped closings, missed protections, and post-closing surprises.