<div dir="ltr"><p class="MsoNormal">David Wiener asked me to post the following question to the leasing committees. </p><p class="MsoNormal"><br></p><p class="MsoNormal"><b><i style="">Subject: </i><span style="color:rgb(32,33,36);font-family:"Google Sans",Roboto,RobotoDraft,Helvetica,Arial,sans-serif;font-variant-ligatures:no-contextual">Continuing Effectiveness of on Shopping Center of Use Restriction under Lease of <span class="" id=":38s.1" tabindex="-1" style="">Outparcel</span> that has been sold</span></b></p><p class="MsoNormal"><b><i><br></i></b></p><p class="MsoNormal"><b><i>Dear Committee Members,<u></u><u></u></i></b></p><p class="MsoNormal"><b><i><u></u> <u></u></i></b></p><p class="MsoNormal"><b><i>I would be very grateful for any insights on the following fact pattern and question:<u></u><u></u></i></b></p><p class="MsoNormal"><b><i><u></u> <u></u></i></b></p><ol start="1" type="1" style="margin-bottom:0in;margin-top:0in"><li class="gmail-m_8179562512830163269MsoListParagraph" style="margin:0in 0in 0.0001pt;font-size:11pt;font-family:Calibri,sans-serif"><b><i>Landlord owns a shopping center that contains an in-line retail building and an <span class="" id=":38s.2" tabindex="-1" style="">outparcel</span> on which a free-standing building has been constructed<u></u><u></u></i></b></li><li class="gmail-m_8179562512830163269MsoListParagraph" style="margin:0in 0in 0.0001pt;font-size:11pt;font-family:Calibri,sans-serif"><b><i>Landlord leases the <span class="" id=":38s.3" tabindex="-1" style="">outparcel</span> and the free-standing building thereon to a tenant. <u></u><u></u></i></b></li><li class="gmail-m_8179562512830163269MsoListParagraph" style="margin:0in 0in 0.0001pt;font-size:11pt;font-family:Calibri,sans-serif"><b><i>The <span class="" id=":38s.4" tabindex="-1" style="">outparcel</span> lease contains a provision imposing various use restrictions on the balance of the shopping center<u></u><u></u></i></b></li><li class="gmail-m_8179562512830163269MsoListParagraph" style="margin:0in 0in 0.0001pt;font-size:11pt;font-family:Calibri,sans-serif"><b><i>Neither the <span class="" id=":38s.5" tabindex="-1" style="">outparcel</span> lease, nor any  memorandum thereof, is recorded in the Public Records<u></u><u></u></i></b></li><li class="gmail-m_8179562512830163269MsoListParagraph" style="margin:0in 0in 0.0001pt;font-size:11pt;font-family:Calibri,sans-serif"><b><i>Subsequently, Landlord plats the shopping center, thereby subdividing it into two separate legal lots, namely the <span class="" id=":38s.6" tabindex="-1" style="">outparcel</span>, as one lot, and the balance of the shopping center (the “Core Parcel”), as the other lot. <u></u><u></u></i></b></li><li class="gmail-m_8179562512830163269MsoListParagraph" style="margin:0in 0in 0.0001pt;font-size:11pt;font-family:Calibri,sans-serif"><b><i>In conjunction with the platting process, Landlord records a Declaration of Reciprocal Easements and Restrictive Covenants (the “REA”) that encumbers both the <span class="" id=":38s.7" tabindex="-1" style="">outparcel</span> and the Core Parcel<u></u><u></u></i></b></li><li class="gmail-m_8179562512830163269MsoListParagraph" style="margin:0in 0in 0.0001pt;font-size:11pt;font-family:Calibri,sans-serif"><b><i>Landlord sells and conveys the <span class="" id=":38s.8" tabindex="-1" style="">outparcel</span> to a third party and as part of the transaction, Landlord assigns all of its rights under the <span class="" id=":38s.9" tabindex="-1" style="">outparcel</span> lease to the purchaser, who assumes the lease effective as of the closing date<u></u><u></u></i></b></li><li class="gmail-m_8179562512830163269MsoListParagraph" style="margin:0in 0in 0.0001pt;font-size:11pt;font-family:Calibri,sans-serif"><b><i>Nothing in the conveyancing documents – and nothing in the REA - imposes any use restrictions on the Core Parcel (although the REA does impose use restrictions on the <span class="" id=":38s.10" tabindex="-1" style="">outparcel</span>) – and nothing in the conveyancing documents and nothing in the REA purports to continue the effectiveness of the use restrictions in the <span class="" id=":38s.11" tabindex="-1" style="">outparcel</span> lease as an on-going encumbrance on the Core Parcel<u></u><u></u></i></b></li></ol><p class="MsoNormal"><b><i><u></u> <u></u></i></b></p><p class="MsoNormal"><b><i>Here is my question: <u></u><u></u></i></b></p><p class="MsoNormal"><b><i><u></u> <u></u></i></b></p><p class="MsoNormal"><b><i>Since, presumably, the owner of the Core Parcel ceases to be the “landlord” under the <span class="" id=":38s.12" tabindex="-1" style="">outparcel</span> lease upon the closing of the sale of the <span class="" id=":38s.13" tabindex="-1" style="">outparcel</span> to the third party, is the owner of the Core Parcel still bound by the use restrictions that are contained in the <span class="" id=":38s.14" tabindex="-1" style="">outparcel</span> lease?<u></u><u></u></i></b></p><p class="MsoNormal"><b><i><u></u> <u></u></i></b></p><p class="MsoNormal"><b><i>Please let me have your thoughts<u></u><u></u></i></b></p><p class="MsoNormal"><b><i><u></u> <u></u></i></b></p><p class="MsoNormal"><b><i>Thanks very much.<u></u><u></u></i></b></p><p class="MsoNormal"><b><i><u></u> <u></u></i></b></p><p class="MsoNormal"><b><i>___________________________<u></u><u></u></i></b></p><p class="MsoNormal"><b><i><u></u> <u></u></i></b></p><p class="MsoNormal"><span style="font-size:10pt;font-family:Arial,sans-serif;color:blue"><u></u> <u></u></span></p><p class="MsoNormal"><span style="font-size:10pt;font-family:Arial,sans-serif;color:blue"><u></u> <u></u></span></p><p class="MsoNormal"><span style="font-size:10pt;font-family:Arial,sans-serif;color:blue"><u></u> <u></u></span></p><p class="MsoNormal"><span style="font-size:10pt;font-family:Arial,sans-serif;color:blue">David J. Wiener, Esq.</span><span style="font-size:12pt;font-family:"Times New Roman",serif;color:rgb(31,73,125)"><u></u><u></u></span></p><p class="MsoNormal"><span style="font-size:10pt;font-family:Arial,sans-serif;color:blue">David J. Wiener, P.A.</span><span style="color:rgb(31,73,125)"><u></u><u></u></span></p><p class="MsoNormal"><span style="font-size:10pt;font-family:Arial,sans-serif;color:blue">3200 N. Military Trail</span><span style="color:rgb(31,73,125)"><u></u><u></u></span></p><p class="MsoNormal"><span style="font-size:10pt;font-family:Arial,sans-serif;color:blue">Suite 400</span><span style="color:rgb(31,73,125)"><u></u><u></u></span></p><p class="MsoNormal"><span style="font-size:10pt;font-family:Arial,sans-serif;color:blue"><span class="" id=":38s.15" tabindex="-1" style="">Boca</span> <span class="" id=":38s.16" tabindex="-1" style="">Raton</span>, FL 33431</span><span style="color:rgb(31,73,125)"><u></u><u></u></span></p><p class="MsoNormal"><span style="font-size:10pt;font-family:Arial,sans-serif;color:blue">Telephone:  561-989-2910</span><span style="color:rgb(31,73,125)"><u></u><u></u></span></p><p class="MsoNormal"><span style="font-size:10pt;font-family:Arial,sans-serif;color:blue">Facsimile:  561-361-8898</span><span style="color:rgb(31,73,125)"><u></u><u></u></span></p><p class="MsoNormal"><span style="font-size:10pt;font-family:Arial,sans-serif;color:blue">Email:  </span><span style="color:rgb(31,73,125)"><a href="mailto:dwiener@woolbright.net" target="_blank"><span style="font-size:10pt;font-family:Arial,sans-serif;color:blue"><span class="" id=":38s.17" tabindex="-1" style="">dwiener</span>@<span class="" id=":38s.18" tabindex="-1" style="">woolbright</span>.net</span></a><u></u><u></u></span></p><p class="MsoNormal"><span style="color:rgb(31,73,125)"><u></u> </span></p><div><div dir="ltr" class="gmail_signature" data-smartmail="gmail_signature"><div dir="ltr"><div><div dir="ltr"><div><div dir="ltr"><div><div dir="ltr"><div><div dir="ltr"><div><div dir="ltr"><div><div dir="ltr"><p style="margin:0in 0in 0.0001pt;font-size:12pt;font-family:Calibri,sans-serif;background-image:initial;background-position:initial;background-repeat:initial"><span style="font-size:10pt;font-family:Tahoma,sans-serif;color:black">Kristen King <span class="" id=":38s.19" tabindex="-1" style="">Jaiven</span>, Esq.</span><span style="font-size:10pt;font-family:Arial,sans-serif"></span></p><p style="margin:0in 0in 0.0001pt;font-size:12pt;font-family:Calibri,sans-serif;background-image:initial;background-position:initial;background-repeat:initial"><span style="font-size:10pt;font-family:Tahoma,sans-serif;color:black">General Counsel</span><span style="font-size:10pt;font-family:Arial,sans-serif"></span></p><p style="margin:0in 0in 0.0001pt;font-size:12pt;font-family:Calibri,sans-serif;background-image:initial;background-position:initial;background-repeat:initial"><span style="font-size:10pt;font-family:Tahoma,sans-serif;color:black">The Signature Real Estate Companies </span><span style="font-size:10pt;font-family:Arial,sans-serif"></span></p><p style="margin:0in 0in 0.0001pt;font-size:12pt;font-family:Calibri,sans-serif;background-image:initial;background-position:initial;background-repeat:initial"><span style="font-size:10pt;font-family:Arial,sans-serif">901-C Clint Moore Road</span></p><p style="margin:0in 0in 0.0001pt;font-size:12pt;font-family:Calibri,sans-serif;background-image:initial;background-position:initial;background-repeat:initial"><span style="font-size:10pt;font-family:Arial,sans-serif"><span class="" id=":38s.20" tabindex="-1" style="">Boca</span> <span class="" id=":38s.21" tabindex="-1" style="">Raton</span>, FL 33487</span></p><p style="margin:0in 0in 0.0001pt;font-size:12pt;font-family:Calibri,sans-serif;background-image:initial;background-position:initial;background-repeat:initial"><span style="font-size:10pt;font-family:Arial,sans-serif"><span class="" id=":38s.22" tabindex="-1" style="">Ph</span>: 561.705.0140</span></p><p style="margin:0in 0in 0.0001pt;font-size:12pt;font-family:Calibri,sans-serif;background-image:initial;background-position:initial;background-repeat:initial"><span style="font-size:10pt;font-family:Arial,sans-serif">Direct Line: 561-300-6921</span></p><p style="margin:0in 0in 0.0001pt;font-size:12pt;font-family:Calibri,sans-serif;background-image:initial;background-position:initial;background-repeat:initial"><span style="font-size:10pt;font-family:Arial,sans-serif">Email: <a href="mailto:Kristen@quadcompanies.com" target="_blank"><span style="color:blue">Kristen@<span class="" id=":38s.23" tabindex="-1" style="">quadcompanies</span>.com</span></a></span></p><p style="margin:0in 0in 0.0001pt;font-size:12pt;font-family:Calibri,sans-serif;background-image:initial;background-position:initial;background-repeat:initial"><span style="font-size:10pt;font-family:Arial,sans-serif"><span style="color:blue"><a href="http://www.signaturerealestatecompanies.com/" target="_blank">www.<span class="" id=":38s.24" tabindex="-1" style="">SignatureRealEstateCompanies</span>.com</a></span></span></p><p style="margin:0in 0in 0.0001pt;font-size:12pt;font-family:Calibri,sans-serif;background-image:initial;background-position:initial;background-repeat:initial"><br></p><p style="margin:0in 0in 0.0001pt;font-size:12pt;font-family:Calibri,sans-serif;background-image:initial;background-position:initial;background-repeat:initial"></p><div style="font-family:tahoma,sans-serif"><a href="http://mysignaturenetwork.com/" style="color:rgb(17,85,204)" target="_blank"><br><img src="http://www.signaturerealestatecompanies.com/sites/signaturerealestatecompanies.com/files/partner_banner.png" alt="Signature Partners"></a></div><div style="font-family:tahoma,sans-serif"><br></div><p style="margin:0in 0in 0.0001pt;font-size:12pt;font-family:Calibri,sans-serif;background-image:initial;background-position:initial;background-repeat:initial"><span style="font-size:10pt;font-family:Arial,sans-serif"><br></span></p><p style="margin:0in 0in 0.0001pt;font-size:12pt;font-family:Calibri,sans-serif"></p></div></div><div><br></div><div><br></div></div></div></div></div></div></div></div></div></div></div></div></div></div></div>

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