Monthly Archives: February 2021

This was originally published on the SGR Blog.

Harsh facts do no automatically lead to an equitable result. In a recent case, a commercial tenant signed a New York City lease that contemplated the tenant would “build-out” the leased “white box” space into a second-floor gymnasium. The day after the signing, construction was stopped, and gyms were closed by Executive Order due to the pandemic.

ITS Soho LLC sought rescission and termination of a long-term lease for second-floor space with 598 Broadway Realty Associates, Inc. The lease term was to start on March 15, 2020. The lease required Realty to provide a “white box” to Soho, and Soho was to do its own build-out as a gym. The lease also provided no obligation to pay rent for the first six months, and the first monthly installment was not due until September. Soho took possession on March 15, 2020, and the very next day, March 16, 2020, gyms were ordered to shut down effective on March 17, 2020, due to the ongoing pandemic. Gyms were not permitted to reopen until September 2020.

This was originally published on the SGR Blog.

Confronts Dispute With Landlord Over Amount Due

Commercial leases are often signed with a concomitant “good guy” guarantee, in which a principal of the tenant guarantees the payment of the financial obligations under the lease. And the guarantor can be released from such liability if both a timely notice to terminate the lease is given, and rent and additional rent are paid in full until the date of surrender. But what if the landlord and tenant disagree about the amount due to perfect the termination and release?

Monica King Contemporary LLC, a corporate tenant, and Monica King, individually, as “good guy” guarantor, sought injunctive relief from a lease with Kedskidz Realty II for the ground floor and basement space used for an art gallery and office at 39 Lispenard Street.