Manatt Partners Discuss How to Structure Financeable Leases

Is Your Lease Financeable?
– GlobeSt.com

Manatt's Michael Polentz, co-chair of the firm's Real Estate and Land Use practice, and partner Dina Tecimer discuss with GlobeSt.com how to structure leases so the tenant is able to obtain financing.

"If a lease is structured properly, the tenant's interest under a lease can be pledged to a lender as collateral for a loan," said Polentz and Tecimer. "This is especially appealing where the tenant plans on remaining in the building for a long period of time."

Assuming the economics of the lease make the tenant's interest valuable, the lease provisions that Polentz and Tecimer discuss should be carefully considered from a legal perspective. When structured properly, such provisions can affect the tenant's ability to obtain financing, therefore leveraging operating cash.

Read the article here

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