Commercial Real Estate Tenants – Pre-Discovery Summary Judgment Ruling Granting Specific Performance of Lease with Purchase Option
Herrick represented Split Rail Holdings, LLC, tenants of a commercial real estate building in the Lower East Side, who entered into a 30-year triple net lease with 176 Grand Corp. Ltd., the landlord. The lease included an option to purchase the property in year 14 for $6.3 million. When Split Rail exercised its option to purchase, 176 Grand argued that there was no purchase option in lease, and even if there were, the purchase price would be $126 million. Herrick secured a victory on a pre-discovery summary judgment motion (which are rarely granted), obtaining specific performance of the lease, allowing Split Rail to purchase the property for $6.3 million. The decision was affirmed by the Appellate Division, First Department. Split Rail Holdings was able to close on the property in 2019.