Item Description:
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Subordination, Non-Disturbance, and Attornment Agreement to Lease Agmt A153899 with Woodlake Centre MOB, LLC and Alerus Financial, N.A. for leased space at 6625 Lyndale Ave S. (No change to lease terms)
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Resolution:
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BE IT RESOLVED, that the Chair of the Board be authorized to sign the Subordination, Non-Disturbance, and Attornment Agreement related to Lease Agreement A153899 on behalf of the county.
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Background:
On August 25, 2015 Hennepin County Board adopted Resolution 15-0315 which authorized Lease Agreement A153899 for 20,188 square feet of space in a building located at 6625 Lyndale Avenue South, Richfield (“Property”). Hennepin County Human Services operates an office from this location. The lease term expires on 12/31/26. Woodlake Center MOB, LLC (“Owner”) is the owner of the Property.
The Owner intends to refinance its mortgage on the Property. Related to that refinancing, the Owner and its mortgage lender, Alerus Financial, N.A. (“Lender”) have requested that the County execute a Subordination, Non-Disturbance, and Attornment Agreement (“SNDA”). The SNDA will establish the priority of the Lender’s mortgage lien and ensure the county’s continued right to occupy the leased premises in the event of a foreclosure. This is a standard practice in the event of a commercial property sale or refinance.
Current Request:
Approval of the execution of a Subordination, Non-Disturbance, and Attornment Agreement to Lease Agmt A153899 with Woodlake Centre MOB, LLC and Alerus Financial, N.A. for the leased space at 6625 Lyndale Avenue South, Richfield, is requested.
Impact/Outcomes:
Approval of the SNDA will not change the terms to Lease Agreement A153899 or impact operations for Human Services at 6625 Lyndale Avenue South, Richfield.
recommendation
Recommendation from County Administrator: Recommend Approval