Defending claims of lien recorded by tenant improvement contractors can be costly, time consuming and lead to protracted litigation. However, with a little planning and the right contract language, landlords can protect their properties from such liability. Below is a summary of various strategies a landlord can implement to avoid liens from its tenant’s improvements. Include No-Lien Language in all Leases and Record A Notice Thereof Under Florida law, when a lease between a landlord and a tenant requires the tenant to make improvements to the tenant’s premises, if the tenant ends up failing to pay its contractor for the tenant improvement work, then the contractor can file a claim of lien (and eventually foreclose) against both the tenant’s leasehold interest and the landlord’s fee simple interest in the property in an attempt to recover payment. However, under Section 713.10, Florida Statutes, the landlord can prevent such claims of lien and foreclosure actions, even if the improvements are the “pith of the lease,” by taking a few proactive steps. First, the landlord must include express “no-lien language” in its lease that states that the interest of the landlord shall not be subject to liens for improvements performed in the premises …
NEW YORK CITY — Eastern Consolidated has arranged the sale of a six-story elevator office building with ground-floor retail space at 84 Bowery for $9.38 million. The 14,250-square-foot building is encumbered by a long-term master lease at substantially below-market rent. Peter Carillo and Adelaide Polsinelli represented the seller, Richard Shongut Realty Corp., and Carillo procured the buyer, a private investor. Chris Matousek of Eastern Consolidated served as the analyst for the deal. “The deal was challenging because it required an extremely patient and knowledgeable investor willing to accept a minimal yield for an extended period of time,” Carillo said. “However, the new owner will be able to recognize substantial upside upon the expiration of the lease. Floors two through six consist of offices leased to medical professionals and additional office space is available on the lower level. The ground floor and mezzanine are occupied by a jewelry store. The property also enjoys 25 feet of frontage along the Bowery as well as 2,700 square feet of unused development rights.”
CARROLLTON, TEXAS — Colliers International has arranged the sale of The French Quarter, an office complex in Carrollton. Greg Hoffman, Michael Carmichael, Chris Lipscomb and Lindsay Wolcott of Colliers represented the unnamed seller in the transaction, while Justin Owen of Dominus Commercial represented the buyer. The French Quarter totals 46,444 square feet and is located at 3610-3630 N. Josey Lane. The property consists of five single-story and two-story office buildings located near President George Bush Turnpike, I-35 and Highway 121.
WALNUT CREEK, CALIF. — Lowe Enterprises Investors (LEI) has purchased a 105,495-square-foot office building in Walnut Creek for an undisclosed sum. The Class A building is located at 500 Ygnacio Valley Road. It is situated two blocks east of the downtown Walnut Creek BART station and less than a half mile from the Interstate 680/Highway 24 interchange regional transportation corridor. Manatt and Eisner Jaffe represented LEI. The seller was Pacific Eagle (US) Real Estate Fund.
DENVER — Big Brothers Big Sisters of Colorado has signed a seven-year lease for a new headquarters facility in Denver. The space is located at 750 West Hampden Ave. JLL’s Andy Cullen represented the organization. Jim Cortney of NAI Shames Makovsky represented the landlord.
MARYLAND HEIGHTS, MO. — McGrath & Associates has completed the expansion of the Girl Scouts of Eastern Missouri (GSEM) headquarters at 2306 Ball Drive in Maryland Heights. The new Berges Family Girl Scouts Program Center houses programs focused on science, technology, engineering and math (STEM) careers, health and money management. Oculus Inc. was the architect. Landmark Contract Management represented the owner. McGrath constructed the 6,500-square-foot facility in an existing space adjacent to the Girl Scouts of Eastern Missouri headquarters. The new program center includes a robotics lab, science area, demonstration kitchen and program studio. Design features include suspended lighting, acoustical ceiling and a glass feature wall. GSEM has more than 43,000 Girl Scout members and 15,000 adult members in the St. Louis area.
MCKINNEY, TEXAS — Cushman & Wakefield has secured bridge refinancing through Synovus Bank for Texas Crossing, which previously served as Blockbuster’s corporate headquarters and national distribution center. Cushman & Wakefield’s Beth Lambert and Diego Arroyave represented the owner, Saskaway Group. The 856,897-square-foot office and industrial facility sat vacant for two years until Saskaway Group purchased it in May 2014, making it the investment group’s fifth acquisition in metro Dallas. In 18 months, ownership leased 100 percent of the 697,149-square-foot warehouse portion to national credit tenants including UPS and International Paper. With the new loan in place, ownership is now focused on leasing the adjoining 160,000-square-foot, two-story office building. The property is located 20 miles north of Dallas at 3000 N. Redbud Blvd. in McKinney.
TAMPA, FLA. — HFF has arranged $29.5 million in financing for TriPointe Plaza, a 71,721-square-foot, mixed-use property located in Tampa. Located at 4488 Boy Scout Blvd. in the Westshore District, the property consists of a four-story, Class A office building; 374-space structured parking garage; 10,008-square-foot Eddie V’s Prime Seafood & Steaks restaurant; and 15,005 square feet of ground-floor retail. A drive-through Synovus Bank branch, BNY Mellon, TD Ameritrade and Sharp Electronics anchor the 90 percent-leased office component. Chris Drew and Brian Gaswirth of HFF worked on behalf of the borrower, Cardinal Point Management, to secure the five-year, fixed-rate loan through a life insurance company. Initial loan proceeds were used to acquire the property with the future proceeds going to fund the construction and interior build-out of a rooftop restaurant/lounge area.
MIDDLETOWN, NEW YORK — Holliday Fenoglio Fowler (HFF) has arranged the $8 million sale of two adjacent buildings totaling 68,831 square feet in the Hudson Valley community of Middletown. The two properties, 100 and 110 Crystal Run Road, are located in the healthcare-focused district of Middletown near the recently completed Orange Regional Medical Center. They offer immediate access to Interstate 84 as well as close proximity to Route 17, Interstate 87 and the Port Jervis Line, a commuter rail line offering access to Manhattan. The 43,518-square-foot 100 Crystal Run Road is fully leased to law, consulting and healthcare companies, including DaVita Dialysis Center and Cornerstone Environmental Group, while the 24,380-square-foot 110 Crystal Run Road is 95 percent leased. Tenants include Orange Regional Medical Center and Prime Time Early Learning Center. Rob Hinckley, Stephen Simonelli, Michael Oliver, and Jose Cruz of HFF represented the undisclosed seller.
NEW YORK CITY — U.S. Bank, the fifth largest commercial bank in the United States, is relocating its New York City headquarters from 461 Fifth Avenue to Three Bryant Park. Cushman & Wakefield has closed a 68,000-square-foot, multi-level sublease with U.S. Bank at the property, which is owned by the Ivanhoé Cambridge/Callahan partnership. U.S. Bank is subleasing the space from MetLife. Bruce Mosler, John Cefaly, Ethan Silverstein, and Peyton Horn of Cushman & Wakefield represented MetLife in the transaction. U.S. Bank was represented by Michael Burlant, Dale Schlather, Jon Herman and Greg Herman of Cushman & Wakefield. Three floors of Midtown Manhattan office space remain available for sublease at the property.