Partner Michael McCarthy spoke with Bisnow for an article about the potential impacts of the General Services Administration’s (GSA’s) efforts to terminate federal leases. Mike noted that as departments cut down on building space and exit leases, those moves could trigger covenants with building loans that could put the mortgages in default.
“Now picture yourself as a lender and you made a loan where the GSA is the only tenant in the building or a significant tenant. What’s the ripple effect of that in your loan documents? If there’s financing on that property and the GSA is a significant portion, that’s going to be a significant problem,” Mike told the publication.
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