| Commercial Real Estate 101: SNDA: Subordination, Non-Disturbance, and Attornment. An SNDA is a crucial agreement typically required by lenders when a loan is involved in a transaction. It involves the borrower, most of the tenants, and the lender, outlining the following key points:
· Subordination: The new mortgage or lien will take priority over existing leases, even if those leases were signed prior to the mortgage.
· Non-Disturbance: If the lender needs to take control of the property due to foreclosure, tenants will continue to have their leases honored as long as they remain in good standing.
· Attornment: In the event of a default by the borrower, the lender can assume the lease and require tenants to pay rent directly to them.
This agreement is designed to protect the lender’s interests while providing stability for tenants under their leases.
1. Neighborhood Center in Aurora, CO: 141,942 SF shopping center built in 1983 on a 10.94-acre lot in the Denver suburbs. Located across from a Walmart Supercenter and near Sam’s Club. Adjacent to the Town Center at Aurora Mall and close to HCA HealthONE Aurora Hospital. Visible from I-225. 95% leased. NOI $1.397M/yr. $18.27M. 7.65% cap. Upside potential when fully occupied.
2. MOB in Hanford, CA: 1,660 SF Class-B single-tenant medical office building developed in 2020, located in the San Joaquin Valley. 100% NNN leased with three years remaining to Kaweah Delta Health Care. NOI $109K/yr. $1.3M. 8.40% cap.
3. Columbia Rio Grande Healthcare Anchored Building in McAllen, TX: 31,428 SF two-tenant mixed-use building constructed in 1991 on a 2.14-acre lot. Adjacent to South Texas Health System McAllen Hospital and Rio Grande Regional Hospital, with easy access from I-2. 100% NNN leased to Columbia Rio Grande Healthcare and Workforce Solutions. NOI $576K/yr. $7.953M. 7.25% cap.
4. Shopping Center in Longwood, FL: 19,877 SF attractive multitenant center in the Orlando suburbs, only 0.6 miles from Orlando Health South Seminole Hospital. 100% NNN occupied by retail and medical tenants. NOI $466K/yr. $5.7M. 8.19% cap.
5. Mixed-Use Building in Duluth, MN: 15,631 SF building completed in 1998 on a 0.90-acre lot. 100% NNN leased to True North Goodwill, a regional operator with 11 locations, and NuWay House, which provides treatment for substance use and mental health disorders. NOI $189K/yr. $2.7M. 7% cap.
6. Hanger Clinic in Peoria, IL: 8,000 SF single-tenant medical office building developed in 2002 on a 1.16-acre lot. 100% NNN corporate lease until 2026 to a strong operator with 900+ locations. Minimal landlord responsibilities. Close to OSF St. Francis Medical Center. NOI $97K/yr. $1.146M. 8.5% cap.
7. Heartland Dental in West Bend, WI: 2,500 SF single-tenant medical office building developed in 2015 on a 0.47-acre lot. Located along a corridor with 15,700 CPD. Heartland Dental operates 1,700 locations in 39 states. 100% NNN- corporate lease until 2027. NOI $84K/yr. with 2% annual rent increases. $1.192M. 7.10% cap.
8. Retail Center in Antioch, TN: 57,613 SF well-maintained retail center built in 1986 on a 5.87-acre lot in the fast-growing Nashville suburbs. Close to I-24 with 168,519 VPD. 87% occupied by multiple tenants, including Subway, Hertz, and Plato’s Closet. NOI $480K/yr. $6.74M. 7.14% cap.
9. Shopping Center in Antioch, TN: 16,360 SF multitenant retail center developed in 1986 on a 1.48-acre lot in the growing Nashville suburbs. Easy access to I-24. 100% NNN leased. NOI $232K/yr. $3.279M. 7.10% cap. Note: flyer not available, full brochure upon request.
10. Walgreens in Dallas, TX: 15,120 SF drive-thru pharmacy built in 2000 at a hard corner location in a densely populated area. 100% NNN- corporate lease until 2031. NOI $273K/yr. with 5% rent increases every five years. $3.269M. 8.35% cap. Note: flyer not available full marketing package upon request. |
