The latest news, articles, and events from the attorneys at Lerch, Early & Brewer.

Lerch Early Insights

COVID-19 Resource Center

Lerch Early is monitoring COVID-19 and its impact on our clients and communities.

As part of this effort, we're constantly working on fresh content to both inform and to meet your needs. Please check out our

COVID-19 Resource Center


Lender Issues in Mixed-Use Project Commercial Leasing

Landlords and tenants must be aware of lender requirements when preparing commercial leases in mixed-use developments. Whether an end-user lease, parcel developer ground lease, or condominium unit, the property rights must be financeable. Landlords and tenants should consider the following to ensure that the tenant's interest is financeable:

  • What is the lender’s collateral? A condo unit? A leasehold estate?
  •  Project documents must have priority over financing so that declarations, ground leases or reciprocal easement agreements (REAs) survive a foreclosure event.
  • Project assessments cannot prime a lender’s mortgage or deed of trust.
  • Project documents and leases must provide for estoppels and Subordination, Non-disturbance, and Attornment Agreements (SNDAs) to protect not only the end user tenant but to provide the lender the comfort that the project will continue even after a foreclosure event.
  • Parcel developers of ground leased parcels or fee parcels require the same safeguards for their leasehold mortgage holders that would be found in anyfinanceable ground lease:
    • Lenders will want notice of default and the right to cure.
    • Lenders will want ability to assign leases with limited use restrictions.
    • Lenders will want limitations on lender’s liability on assuming a lease.
    • The lease should contain an anti-merger clause if tenant has a purchase option.
    • The leased premises and rights to use the balance of mixed-use development should be distinct and well defined.
    • Lenders will require their consent to lease modifications.

Larry Lerman is a commercial lending and real estate attorney at Lerch, Early & Brewer in Bethesda, Maryland who structures and documents complex commercial lending arrangements and represents parties who are buying, selling, leasing and financing commercial real estate. For more information on lending issues in mixed-use developments, contact Larry at (301) 657-0163 or

This content is for your information only and is not intended to constitute legal advice. Please consult your attorney before acting on any information contained here.


Email Confirmation

Thank you for your interest in Lerch, Early & Brewer. Please be aware that unsolicited e-mails and information sent to Lerch Early though our web site will not be considered confidential, may not receive a response, and do not create an attorney-client relationship with Lerch Early Brewer. If you are not already a client of Lerch Early, do not include anything confidential or secret in this e-mail. Also, please note that our attorneys do not seek to practice law in any jurisdiction in which they are not authorized to do so.

By clicking "OK" you acknowledge that, unless you are a current client, Lerch Early does not have any obligation to maintain the confidentiality of any information you send us.