As the deal gained momentum, owner Vornado Realty Trust helped cement the transaction by ultimately arranging an Assignment of Lease
, meaning that Publicis assumes the terms of the five year lease from Direct Brands.
This assignment of lease
brings with it direct liability to the existing landlord, joint and several with the original tenant.
Ruderman and Goldman engineered the Assignment of Lease
and then negotiated a direct lease extension with the building's landlord, The Equitable Assurance Company of the United States.
* Pfizer's Successful Acquisition (Sale and Assignment of Lease
) of 685 Third Avenue to Expand its Manhattan Corporate Campus.
recently, announced that The Chase Manhattan Bank has entered into an assignment of lease
with Credit Suisse First Boston Corporation (CSFB) for 1.3 million SF of office space at 277 Park Ave.
By allowing for the assignment of leases
, the bankruptcy law does not favor tenants, but potentially gives creditors of tenants a source of recovery--from the value to the tenant of a below-market lease.