Five years ago, an investment company bought the shopping center of my retail business. The acquisition happen right before the recession; therefore, they way over paid.
Immediately they came after all the tenants with a higher lease rate through the leverage of NNN. I renegotiate a new five-year lease to avoid conflict even though I knew I got the bad end of the deal, but I just finished moving and I was out of cash to do it again.
Knowing their intention, which is to demolish the place and rebuild, I offered them an opt-out clause on my lease. We agreed to a provision (Written in the lease) that I shall get the last three months rent-free plus the refund of my security deposit so I can have the funding and time to move – When their project is solidified. As of today, I have one more year left on my lease agreement.
Within the last six months, they evicted three and brought in two new tenants. However, the two new tenants were given just a three months lease, and one have already been locked out after just one month. So as of today, the shopping center is 75% vacant and the parking lot is largely being neglected. The condition of the shopping center is no different than a abandon lot.
Within the last month, the word from City Hall and various other sources indicated that demolition is schedule to start in July. In fact, a local newspaper reported that the shopping center is coming down as well. I also received information from a reliable source, a local leasing agent who's company just got the listing rights to the upcoming rebuild center, and the leasing agent also told me that the investment group is planing demolishing the center as as easy as July.
This also created a very interesting situation, where many of my clients thought my business has already been shut down without a home - through Facebook contacts.
So this month, I started to look for retail space to relocate and I stop paying my rent (thinking that it is time for my landlord to exercise the last three months free rent). However, the property management is calling me for the rent. After I explain to them what I know, they still insist the rent to be paid until “they” notify me through a form of a letter, which is yet in existence.
Today I contacted a lawyer who has already been representing a neighboring tenant and requested him to write a letter in my behalf to the property management, basically letting them know that in writing, I know what’s going on and I have put all the rent money in a trust/bank account until the truth is disclosed. So this is where I’m at with the situation.
What do you guys think? Any suggestions or advice?
Immediately they came after all the tenants with a higher lease rate through the leverage of NNN. I renegotiate a new five-year lease to avoid conflict even though I knew I got the bad end of the deal, but I just finished moving and I was out of cash to do it again.
Knowing their intention, which is to demolish the place and rebuild, I offered them an opt-out clause on my lease. We agreed to a provision (Written in the lease) that I shall get the last three months rent-free plus the refund of my security deposit so I can have the funding and time to move – When their project is solidified. As of today, I have one more year left on my lease agreement.
Within the last six months, they evicted three and brought in two new tenants. However, the two new tenants were given just a three months lease, and one have already been locked out after just one month. So as of today, the shopping center is 75% vacant and the parking lot is largely being neglected. The condition of the shopping center is no different than a abandon lot.
Within the last month, the word from City Hall and various other sources indicated that demolition is schedule to start in July. In fact, a local newspaper reported that the shopping center is coming down as well. I also received information from a reliable source, a local leasing agent who's company just got the listing rights to the upcoming rebuild center, and the leasing agent also told me that the investment group is planing demolishing the center as as easy as July.
This also created a very interesting situation, where many of my clients thought my business has already been shut down without a home - through Facebook contacts.
So this month, I started to look for retail space to relocate and I stop paying my rent (thinking that it is time for my landlord to exercise the last three months free rent). However, the property management is calling me for the rent. After I explain to them what I know, they still insist the rent to be paid until “they” notify me through a form of a letter, which is yet in existence.
Today I contacted a lawyer who has already been representing a neighboring tenant and requested him to write a letter in my behalf to the property management, basically letting them know that in writing, I know what’s going on and I have put all the rent money in a trust/bank account until the truth is disclosed. So this is where I’m at with the situation.
What do you guys think? Any suggestions or advice?
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