Real estate trust

December 31, 2011

Representation of a real estate trust as the owner/ground lessor in a highly complex and contentious termination of a ninety-nine year ground lease with approximately 47 years remaining on the term. The ground tenant had constructed and was operating a fifteen story, 200,000 square foot medical office building on the ground leased parcel and the primary frontage of the building is upon a very desirable thoroughfare. A "market rate" ground rent reset was to occur on the 50th anniversary of the commencement date. The parties disputed the recalculation of ground rent derived from a multi-layered appraisal process. After intense negotiations, the parties agreed to terminate the lease and to permit the ground tenant to purchase the property at a set value favorable to our client.
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