Southerner
Junior Member
What is the name of your state? Florida
We own a marina with a 3 story building. A previous shareholder worked up a lease for a tenant of our 2nd floor. The lease was for 5 years with an option to renew for another 5 years. The previous shareholder included in this lease an first right of refusal to purchase for the Lessee’s ex-business partner. The initial 5 year lease expired and we would not exercise the additional 5 years because the tenant’s arrangement substantially changed. He retained the 2nd floor at a much higher lease payment along with leasing the 3rd floor. Other considerations were made into and part of his new lease.
My question is since the original lease expired without renewal and the new lease is substantially different does the ex-business partner have any position in the new lease? We are selling and this has become an irritant to the potential purchaser by possibly having to run his deal by this other person to see if he wants to buy it at the same deal.
Thanks Robert
We own a marina with a 3 story building. A previous shareholder worked up a lease for a tenant of our 2nd floor. The lease was for 5 years with an option to renew for another 5 years. The previous shareholder included in this lease an first right of refusal to purchase for the Lessee’s ex-business partner. The initial 5 year lease expired and we would not exercise the additional 5 years because the tenant’s arrangement substantially changed. He retained the 2nd floor at a much higher lease payment along with leasing the 3rd floor. Other considerations were made into and part of his new lease.
My question is since the original lease expired without renewal and the new lease is substantially different does the ex-business partner have any position in the new lease? We are selling and this has become an irritant to the potential purchaser by possibly having to run his deal by this other person to see if he wants to buy it at the same deal.
Thanks Robert