SRZ Represents Prominent Real Estate Owner in Obtaining Arbitration Award Setting Highest Retail Rent in Manhattan

SRZ successfully represented one of the most prominent real estate owners in the United States against a popular New York City retailer in obtaining an arbitration award setting the rent for the retailer's renewal lease at the highest level for retail rent in Manhattan history.

The retailer, who has leased a high-visibility space in a popular tourist district in Manhattan for many years, exercised its option for a renewal term for that space pursuant to its lease. In order to set the rent for the five-year renewal term, the lease required that the Landlord and Tenant each choose an appraiser, who in turn would choose the Independent Appraiser who was required to select either the fair market rental value ("FMRV") submitted by the Landlord or the Tenant, which is the typical "baseball" arbitration procedure set forth in lease renewal clauses. The process set forth in the lease required the parties to conduct the arbitration proceedings very quickly, so that the Independent Appraiser could render her award, as required in the lease, within 30 days of being appointed. The proceeding was highly contentious because the opposing parties were millions of dollars apart as to the FMRV. After a five-day arbitration, consisting of testimony by the Landlord's appraiser and Tenant's appraiser, as well as expert testimony from prominent real estate brokers, the Independent Appraiser chose the FMRV submitted by the Landlord.

SRZ's representation was led by litigation partner Robert J. Ward and real estate partner Robert S. Nash.