SL Green only recently acquired the building at 719 Seventh Ave in Manhattan for $41.1 million and it is already having legal troubles with its only tenant, Great Locations New York. This according to a report in The Real Deal.
SL Green plans to tear down the old three floor building located at the corner of 48th Street and replace it with a new development. Before tearing it down, however, the firm wishes to change its locks for security reasons.
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The issue revolves around the tenant’s refusal to comply with that request from SL Green. Its attorney told SL Green in an e mail that there was no reason for the lock change since the building was safe. SL Green responded by filing a law suit last week in Manhattan State Supreme Court seeking a court order to force the lock changes.
SL Green plans to build a three story, 25, 000 square foot retail building there after it demolishes the old one. The site allows for a building with up to 28, 114 square feet.
It purchased the property from Kenneth Rothstein of Denver and Jeffrey Rothstein of Scarsdale.
Brett Herschenfeld, a managing director at SL Green, said in a statement at the time, “Times Square continues to evolve into a dynamic retail and commercial destination. We have made several timely and well-placed investments in the submarket, and in doing so, have substantially contributed to the area’s evolution.”
While Great Locations holds the lease for the entire building, the company subleases it to the delicatessen Smiler’s. The deli also subleases parts of it to two gift shops, a laser hair removal salon and a signage company. Until now Great Locations has been paying $836, 481 in rent per year on a lease that lasts until July 31, 2018. But following SL Green’s acquisition of the property the lease was shortened to January 31st, 2015. Great Locations will receive a $1 million lease buyout from SL Green once they have moved out.