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Posts tagged SNDA.

In this Part II, we continue the discussion of Subordination, Non-Disturbance and Attornment Agreements, and suggest ways tenants can protect themselves in the current marketplace.

 

Office foreclosure SNDAGiven the current commercial real estate market and the difficulties faced by many lenders, it is no surprise that many tenants are more concerned than ever about their landlord’s financing. In particular, even if the property is mostly leased and producing a steady income stream, tenants are concerned that highly leveraged landlords will have difficulty refinancing given declining property values and the challenging lending environment. Because of these factors, tenants are paying more attention than ever to their rights in the event of foreclosure by insisting that their landlord and landlord’s lender enter into a subordination, non-disturbance and attornment agreement (an “SNDA”).