[RPPTL Leasing Committee] [RPPTL LandTenCL] Windstorm Lease Issue

Thu Sep 21 07:51:49 PDT 2023

Thanx for your response Art..We have the placement through Landlord as the
Lease provides, but were trying to look at "creative" alternatives..They
want to place it, the Tenant is just being difficult.

Hope all is well with you, Art.

Les H. Stevens, Esquire

Les H. Stevens, P.A.

5301 North Federal Highway

Suite 130

Boca Raton, Florida 33487

Tel: 561-989-9797

Fax: 561-989-8484

E-Mail:  <mailto:lesstevens at earthlink.net> lesstevens at earthlink.net

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From: landtencl-bounces at lists.flabarrpptl.org
<landtencl-bounces at lists.flabarrpptl.org> On Behalf Of Real Estate Leasing
Committee
Sent: Thursday, September 21, 2023 10:40 AM
To: 'landten at lists.flabarrpptl.org' <landten at lists.flabarrpptl.org>;
'Landtencl' <landtencl at lists.flabarrpptl.org>
Subject: Re: [RPPTL LandTenCL] [RPPTL Leasing Committee] Windstorm Lease
Issue

Les, is this a multi or single tenant building scenario?

If multi-tenant, I assume the Landlord is insuring the building and there
really isn't much direct risk for the Landlord if the Tenant doesn't have
windstorm coverage on its FF&E.  if the Tenant is credit worthy why not let
them self-insure?  I could send you some self-insurance clauses.  Frankly, I
think the Landlord could make a business decision to waive the coverage
without requiring self-insurance.

If this is a single tenant property, why not have the landlord insure the
building including obtaining the windstorm coverage?  Tenant will reimburse
the Landlord for the cost of the insurance as additional rent.  Frankly,
this is the way insurance should be handled for a single tenant building.

Arthur J. Menor
Partner, Board Certified in Real Estate Law | Shutts & Bowen LLP 
Tel: (561) 650-8510 | Cell: (561) 358-1572 
525 Okeechobee Blvd., Ste. 1100, West Palm Beach, FL 33401
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From:  <mailto:landten-bounces at lists.flabarrpptl.org>
landten-bounces at lists.flabarrpptl.org <
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landten-bounces at lists.flabarrpptl.org> On Behalf Of RPPTL Real Estate
Leasing Committee
Sent: Thursday, September 21, 2023 8:40 AM
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landtencl at lists.flabarrpptl.org>; 'Landten' <
<mailto:landten at lists.flabarrpptl.org> landten at lists.flabarrpptl.org>
Subject: [RPPTL Leasing Committee] Windstorm Lease Issue

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As there are 2 listservs, and I think my first posting went to the
residential as opposed to the commercial, I am re-posting the below
question.

Need some creative input.

Have a commercial Landlord whose leases require windstorm insurance.

Tenant (multiple locations with Landlord) is trying to self-insure for
windstorm due to the high premiums; however, the Leases do not provide the
Tenant the right to self-insure. The Leases state that if Tenant fails to
obtain insurance, Landlord has the right to place the insurance and charge
back Tenant, or declare a default.

The Landlord and Tenant have had a long relationship and wanted to get
creative in alternative ways to meeting the insurance requirement (i.e.
Standby Letter of Credit); however, I wanted to know if anyone else is
running into this issue and what ways they see of solving.

As a side fact, the Guarantor of the Lease is financially significant (if
that provides an alternative). Each of the LLC Tenants are separate and
distinct entities under the umbrella of the Guarantor.

Thanx for any input.

Les H. Stevens, Esquire

Les H. Stevens, P.A.

5301 North Federal Highway

Suite 130

Boca Raton, Florida 33487

Tel: 561-989-9797

Fax: 561-989-8484

E-Mail: lesstevens at earthlink.net <mailto:lesstevens at earthlink.net> 

____________________________________________________________________________
_ 

OUR OFFICE NO LONGER ACCEPTS CASHIER'S CHECKS AT CLOSING. ALL FUNDS MUST BE
RECEIVED IN THE FORM OF A SAME DATE WIRE TRANSFER ONLY (NO ACH TRANSFERS).

WE DO NOT ACCEPT OR REQUEST CHANGES TO WIRING INSTRUCTIONS VIA EMAIL OR FAX.
Always call to verify

THIS MESSAGE IS INTENDED ONLY FOR THE USE OF THE INDIVIDUAL OR ENTITY TO
WHOM IT IS ADDRESSED, AND MAY CONTAIN INFORMATION THAT IS PRIVILEGED,
CONFIDENTIAL AND/OR OTHERWISE EXEMPT FROM DISCLOSURE. IF YOU HAVE RECEIVED
THIS TRANSMITTAL IN ERROR, PLEASE DELETE IT AND NOTIFY THIS OFFICE
IMMEDIATELY.

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