MIAMI—The land grab in key Miami markets won't last forever. That's because there's very few prime parcels of land left to grab. How does that impact lending on land and the commercial real estate developers are planning to build upon it?

GlobeSt.com caught up with Luis Flores, an attorney in Arnstein & Lehr's Miami office, to get his thoughts on this question. Flores has a unique view on this topic.

Flores represented J. Milton & Associates in closing a $136.5 million loan for the construction of the Parque Towers project in Sunny Isles. The lender is Wells Fargo. In December 2014, he represented PMG-S2 Sunny Isles in obtaining a $167 million construction loan from Guggenheim Commercial Real Estate Finance to build the Muse project.

“Lenders making acquisition loans for developable land are, from time to time, including provisions in their loan documents which grant them either the right to first offer a construction loan on the project, or the right to match any term sheet received by borrower for a construction loan on the development,” Flores tells GlobeSt.com. “This is a smart strategy.”

Why is it so smart? Because, Flores says, if a lender agrees to make an acquisition loan it is because the lender trusts the developer and believes in the vision for the site.  

“Therefore, when it is time to develop the property, that lender may want to play a role in turning that vision into reality,” Flores says. “Lenders are looking to do business with highly experienced developers. So, this is a way to guarantee they will have a foot in the door when the borrower is prepared to commence construction and go vertical.”

If you missed the first two parts of this exclusive interview, you can still check them out: Three Legs of the New Capital Structure and What Lenders Look for in Condo Deals.