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Course Details

Course Information
  • smart_display Format

    On-Demand

  • signal_cellular_alt Difficulty Level

    Intermediate

  • work Practice Area

    Real Property - Transactions

Date & Time
  • event Date

    Thursday, October 12, 2023

  • schedule Time

    1:00 p.m. ET./10:00 a.m. PT

  • timer Program Length

    90 minutes

Credit Information

  • This 90-minute webinar is eligible in most states for 1.5 CLE credits.

$347.00
CLE
ALL

This CLE course will discuss the purpose and objectives of subordination, non-disturbance, and attornment agreements (SNDAs) for all key stakeholders--lenders, tenants, and landlords. The panel will outline best practices for drafting and negotiating SNDAs and other related provisions, such as estoppel certificates.

Faculty

James C. O'Brien
Partner, Co-Chair Leasing Practice
Seyfarth Shaw LLP

Mr. O’Brien has more than 20 years of experience as a transactional attorney. He has handled matters throughout the country and internationally and has significant experience in California real estate transactions. Mr. O’Brien’s practice has included acquisitions, dispositions, leasing, financing, and joint venture formation. He represents both landlords and tenants in the leasing of office, retail, and industrial premises. He has experience with the entire life cycle of a lease, from negotiating letters of intent and leases themselves to dealing with construction and tenant improvement issues, expansion amendments, early terminations and lease disputes. Mr. O’Brien works closely with his clients’ brokers, construction managers, and other leasing professionals to complete lease negotiations as efficiently and as advantageously as possible.

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Katie K. Yuen
Partner
Seyfarth Shaw LLP

Ms. Yuen works with owners and tenants of commercial and industrial real estate, including various facilities serving e-commerce, to advise them in a variety of transactions, including acquisitions, development, and leasing. She works closely with clients to identify potential site challenges and develop strategies to deal with on-site logistics for properties across North America and Australia.

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Description

One of the most significant issues in commercial leasing and real estate finance is the priority of the secured loan concerning the property owner's tenants. SNDAs are critical to set out the rights and obligations of the landlord, tenant, and lender.

The SNDA agreement addresses how and when the tenant's rights are subordinate to the lender's rights. Non-disturbance provisions assure that the tenant's rights to the premises will be preserved and not be disturbed if the landlord defaults on its loan and the lender forecloses. Attornment provisions assure that the tenant will recognize the lender as the new landlord after foreclosure.

SNDAs include other provisions that may alter the lease terms, including the application of insurance and condemnation proceeds, notice obligations, and lender consent rights in connection with the assignment or amendment of the lease. Estoppel certifications may also be included.

Listen as our authoritative panel of real estate practitioners analyzes the purpose and objectives of SNDA agreements for lenders, tenants, and landlords and explains how to draft and negotiate SNDAs and other related provisions such as estoppel certificates.

Outline

  1. Overview of SNDAs and their objectives
  2. Subordination provisions
  3. Non-disturbance provisions
  4. Attornment provisions
  5. Additional provisions that are often included in SNDAs (estoppel, notice, use of property, casualty insurance proceeds)

Benefits

The panel will review these and other key issues:

  • The lender's objectives in negotiating the SNDA agreement and how the lender can protect the future rental stream of the property
  • The tenant's objectives beyond non-disturbance of possession of the premises and rights they should seek to negotiate
  • The landlord's objectives in drafting and negotiating the SNDA agreement