The borrower intends to generate income from short-term leases subject to a demolition clause
during the balance of the predevelopment process.
The demolition clause
states that if the landlord determines to demolish the building it will give tenant advance notice and pay a fee so it can empty the building.
"The building is neither landmarked nor part of a historic district, and the retail tenant has a demolition clause
in its lease."
* "Microsoft at 677 Fifth Avenue: Or How I Learned to Stop Worrying and Love the Demolition Clause
The lease includes one, five-year renewal option and a demolition clause
that may be exercised with six-months' notice.
The property features 95 feet of retail frontage and is comprised of eight retail tenants, the majority of whom have short-term leases and/or demolition clauses
. The property offers approximately 43,700 s/f for mixed-use development.
All in-place leases feature redevelopment demolition clauses
. Current zoning allows for a variety of uses that would enhance and benefit from the property's resort and tourist destination location.
Approximately 55 percent of the leasable area operates on a month-to-month basis and/or operates on leases with demolition clauses
. Approximately 75 percent of the property can be converted into hotel or residential use.
All leases contain demolition clauses
, posing a prime development opportunity.
"Currently, the parcel is occupied by month-to-month or short term tenants leasing either yard or billboard space, all leases have demolition clauses
, and there is an annual income of $1.25 million," added Lee.
Eastern Consolidated senior director Azita Aghravi with financial services director Gary Meese are promoting the sate of the pair of buildings, currently occupied by four retail tenants that have demolition clauses
stipulated in their leases,
The latter are on leases which expire in 2014 and 2015 and both have demolition clauses