[RPPTL Leasing Committee] Limited/Rolling PG

Thu May 23 08:54:07 PDT 2024

Hi All,

I'm working on a PG for a Commercial Lease.  I have a standard form, but it's a full guaranty and they want it rolling for just 1 year.  Any chance anyone has any language or a form you could help me out with?

Cary Sabol
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From: landten-bounces at lists.flabarrpptl.org <landten-bounces at lists.flabarrpptl.org> on behalf of RPPTL Real Estate Leasing Committee <landten at lists.flabarrpptl.org>
Sent: Thursday, September 21, 2023 10:39 AM
To: 'landten at lists.flabarrpptl.org' <landten at lists.flabarrpptl.org>; 'Landtencl' <landtencl at lists.flabarrpptl.org>
Subject: Re: [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
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From: landten-bounces at lists.flabarrpptl.org <landten-bounces at lists.flabarrpptl.org> On Behalf Of RPPTL Real Estate Leasing Committee
Sent: Thursday, September 21, 2023 8:40 AM
To: 'Landtencl' <landtencl at lists.flabarrpptl.org>; 'Landten' <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

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

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