Trending Report Archives for JR KASMAN, PLLC


SUBLEASING CONSIDERATIONS FOR TENANTS AND LANDLORDS

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Some tenants think that subleasing office space is a more attractive alternative to signing a direct lease in an office building. For example, a tenant may find better space or a shorter lease term with a sublease versus direct lease. However, tenants should consider some potential challenges to subleasing before signing a letter of intent. Our motto is “every sublease is different.” Here are some things to think about. Time and Cost: Subtenant’s counsel will need to review the prime underlying lease as well as the sublease agreement. In many cases, counsel will also need to review and negotiate a... View Article


HIDDEN CASH FLOW DISTRIBUTION RESTRICTIONS IN LOAN DOCUMENTS (COMPARATIVE ANALYSIS FOR BORROWERS AND LENDERS)

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When a borrower places a lien on a commercial real estate (“CRE”) asset as part of a lending transaction, part of the collateral granted includes an assignment of the rents generated by the asset (often defined broadly in the loan documents, “Rents”). Unless a CRE loan is made subject to some form of pre-default cash management/clearing or some other restriction on budget or cash flow, a borrower receives, manages and distributes Rents without lender oversight or restriction unless and until there is a loan default. Consistent with this status quo, the loan documents will often provide that the borrower has... View Article