Assignment and Subordination of Management Agreement
(Acquisition Loan)

Summary

This template is an Assignment and Subordination of Management Agreement used by a borrower to collaterally assign to a lender a management agreement and subordinate the same to the mortgage securing the acquisition loan. This template includes practical guidance and drafting notes. For a full listing of key content covering construction, see Commercial Real Estate Acquisition Loan Resource Kit. For a full listing of key content covering acquisition financing, see Junior Associate Real Estate Resource Kit (Acquisition Finance). Although a borrower typically executes for the benefit of the lender an omnibus assignment of contracts related to the property generally (see Assignment of Contracts, Licenses and Permits (Acquisition Loan)), a lender may require that certain major agreements such as a property management agreement be assigned and subordinated pursuant to a separate agreement such as this template.