Click here to view the downloadable pdf. Real Estate loan defaults are increasing and will probably continue well into 2024. Defaults are led by office property backed loans. [1] Office occupancy and tenant demand have been decreasing, and interest rates are relatively high, resulting in concern for repayment of some office property backed loans. New funds have been forming to deploy capital into distressed office strategies and massive commercial loan portfolios are trading hands for substantial discounts and, in some cases, seller financing. [2] Many office purchases involve drastic repositioning and change of use. [3] This article is divided into… Read more
Real Estate Law
Work Contemplated by Lease: Not an Actual or Constructive Eviction
Fieldstone Capital (landlord) filled a summary (non-payment) proceeding against Ryan & Conlon (tenant). And Ryan & Conlon asserted that it did not owe rent because the firm had been partially evicted, actually or constructively, from its 7th floor office as a result of common area renovation work done by Fieldstone. Paragraph 4 of the governing commercial lease agreement authorized Fieldstone to make “repairs, alterations, additions or improvements” in or to any portion of the building or demised premises, with “no allowance to Tenant for diminution of rental value and no liability on the part of Owner by reason of inconvenience,… Read more
The Dangerous Side of Security Cameras
Copyright by, and republished with permission of, Habitat Magazine. Surveillance cameras are a valued tool for keeping co-op and condo residents safe. They also have a dangerous side – when their footage is needed as evidence following a crime or accident on the property. Boards need to understand that they have legal obligations – and that they’re open to liability – in such situations. When a board learns that someone has slipped on ice and fallen on the property, sustaining personal injury, it should immediately do three things. First, notify the managing agent; second, have the agent put the building’s… Read more
Using Personal Email Accounts for Co-op Business Is a Very Bad Idea
Copyright by, and republished with permission of, Habitat Magazine. For many co-op and condo board members, email is the default means of communication. Most people have two accounts: a personal one that may also contain family, medical and financial information; and a business account that might contain confidential, proprietary or insider information. Both accounts may contain information that is protected by the attorney-client, marital, or another privilege. When co-op and condo boards get involved in disputes and lawsuits – a virtual inevitability in New York City – the process often leads to what’s called “electronic discovery,” which includes the search of… Read more
Hidden Issues in Commercial Property Acquisitions
Originally Published in Real Estate Weekly, October 15, 2008 By Sean Altschul There are various issues that may arise in connection with commercial property acquisitions that are not typically addressed in the standard form of Contract of Sale. These are known as “hidden issues” as nothing in the standard form of Contract of Sale would necessarily alert a purchaser or their representative counsel. Water charges are typically determined by usage or by “frontage” (based on a fixed amount determined in advance by the city). When the water charges are based on frontage, the city is entitled to a “look back” period whereby the… Read more