Search
 

Locked-Out Tenants Stuck Paying Rent

NEW YORK CITY-The owner of four major downtown structures evacuated since the World Trade Center attacks ensures investors that tenants have ironclad leases and must continue paying rent while the properties are repaired.

By Glen Thompson | Updated on September 17, 2001

NEW YORK CITY-Brookfield Properties Corp. executives yesterday assured jittery investors that while it expects its evacuated downtown buildings to be operational within eight weeks, tenants at One, Two and Four World Financial Center as well as One Liberty Plaza will not be allowed to slide on rents or skip out on leases. Meanwhile, the firm will accelerate construction schedules for ongoing office projects in response to increased demand for space following the World Trade Center bombings.

According to company chairman Gordon Arnell, deputy chair Bruce Flatt, president and CEO-elect Ric Clark and John Zuccotti, chairman Brookfield Financial Properties, tenants of two of the affected properties, comprising roughly half the total space, signed triple net bond leases, which stipulate that they must continue to pay rent regardless of damage to the building. The other two buildings’ tenants, they say, are prohibited from terminating their leases for the next 18 months.

With regard to insurance coverage on the properties, Clark says, “all costs from the fallout of the attack including the full costs of repairs” are covered. He also says acts of terrorism are covered under the policy but that if the government deems the attack an act of war, “I believe it is exclusionary.”

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?

NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.

GlobeSt

Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2024 ALM Global, LLC. All Rights Reserved.