Toys ‘R’ Us loses $10M Times Square flagship rent appeal

New York /
Oct.October 20, 2013 12:00 PM

Toys ‘R’ Us won’t be getting back $10 million it allegedly overpaid in rent and taxes at its Times Square flagship store. A New York State appeals court ruled for the landlord, an entity affiliated with Bow Tie Partners, a real estate development firm, pointing out that Toys ‘R’ Us had paid the alleged overcharges for 12 years without complaint.

The toy store had argued that the terms of their lease limited the amount of real estate taxes they had to pay for the signs of other tenants on the building, according to Law360. However, that provision does not apply to another section of the lease, which requires the tenant to pay a proportionate share of the building-wide real estate taxes, the five-judge state appeals court panel ruled.

“When reviewing the parties’ course of conduct, including plaintiff’s consistent payment of its share of the real estate taxes for over 12 years without protest, it is clear that defendant’s construction of the relevant lease provisions comports with the parties’ intent,” the panel stated.

This ruling affirms a previous decision that called the terms of Toys ‘R’ Us’ lease “clear and unambiguous.” [Law360] —Christopher Cameron


Related Articles

arrow_forward_ios
Brookfield's Bruce Flatt with 1100 Newark Turnpike (Loopnet, Brookfield)
Brookfield buys CSX industrial site in Northern New Jersey for $67M
Brookfield buys CSX industrial site in Northern New Jersey for $67M
SL Green's Marc Holliday and Daniel Boulud with One Madison Avenue (Getty, SL Green)
Daniel Boulud lands at SL Green’s One Madison Avenue
Daniel Boulud lands at SL Green’s One Madison Avenue
(Getty)
Strong November hiring reported in real estate industries
Strong November hiring reported in real estate industries
198 Scholes Street, 65 Kent Avenue, 506 DeKalb Avenue and 11 Gunther Place (Illustration by the Real Deal with Getty, Google Maps)
Avi Philipson deal to acquire All Year portfolio is back on
Avi Philipson deal to acquire All Year portfolio is back on
Rihanna with 8000 Mall Walk (Getty, Visit West Chester NY)
Rihanna’s Savage X Fenty heads to Yonkers
Rihanna’s Savage X Fenty heads to Yonkers
From left: McSam Hotel Group's Sam Chang and SL Green's Marc Holliday with 711 Seventh Avenue  (Getty, Google Mpas, SL Green)
Times Square hotel developer sues neighbors over delayed demolition
Times Square hotel developer sues neighbors over delayed demolition
Why real estate shoppers are bagging grocery-anchored plazas
Why real estate shoppers are bagging grocery-anchored plazas
Why real estate shoppers are bagging grocery-anchored plazas
Macy’s CEO Jeff Gennette (Getty)
Macy’s converts 1M sf to fulfillment space
Macy’s converts 1M sf to fulfillment space
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...