Case Study: East Meadow
Determining fair market rent for an office-and-retail complex.
SVS was retained by an international Park Avenue law firm to help its clients, the owners of an East Meadow office-and-retail complex, determine fair market rent for the renewal of their master lease. An old and ambiguous lease with the operator of a shopping mall was set to expire, and the renewal rent was to be determined through arbitration. The difference between the respective parties’ fair market rental opinions was more than $1.5 million.
SVS worked closely with the client to generate a comprehensive, defensible appraisal and prepare for an extensive arbitration process. Our local market insight and superior data skills proved crucial as we argued against an appraisal prepared by international real estate firm Grubb & Ellis.
The arbitration panel ruled in our client’s favor–a decision that will generate nearly $50 million in additional rental payments over the next 42 years.