Ouch.

Clark Tower owner falls way behind on mortgage payments

Quote:This September marks a year since the owner of Memphis' largest office building was last current on its $60.7 million mortgage.

Someone has done quite a bit of equity-skimming. They probably made more not making the payments than they would have actually paying for it. They'll file bankruptcy and the bank will be left with a charge-off and a giant building in East Memphis,

Our office is in the Crow's Nest on top of Clark Tower. We moved here in '06. At least two more years left on our lease.

Wonder what this means for all tenants.

(09-17-2014 10:52 AM)poppaslaw Wrote:  Our office is in the Crow's Nest on top of Clark Tower. We moved here in '06. At least two more years left on our lease.

Wonder what this means for all tenants.

Nothing, really. Your leases will survive any transfer of ownership.

(09-17-2014 11:30 AM)MemphisCanes Wrote:  

(09-17-2014 10:52 AM)poppaslaw Wrote:  Our office is in the Crow's Nest on top of Clark Tower. We moved here in '06. At least two more years left on our lease.

Wonder what this means for all tenants.

Nothing, really. Your leases will survive any transfer of ownership.

really?

leases survive a foreclosure, I did not know that.

(09-17-2014 11:30 AM)MemphisCanes Wrote:  

(09-17-2014 10:52 AM)poppaslaw Wrote:  Our office is in the Crow's Nest on top of Clark Tower. We moved here in '06. At least two more years left on our lease.

Wonder what this means for all tenants.

Nothing, really. Your leases will survive any transfer of ownership.

I think it depends when the lease was signed. The bank would be stupid to kick out paying tenants. However, if someone buys the building from the bank they could have other uses for the building.

(09-17-2014 03:21 PM)mairving Wrote:  

(09-17-2014 11:30 AM)MemphisCanes Wrote:  

(09-17-2014 10:52 AM)poppaslaw Wrote:  Our office is in the Crow's Nest on top of Clark Tower. We moved here in '06. At least two more years left on our lease.

Wonder what this means for all tenants.

Nothing, really. Your leases will survive any transfer of ownership.

I think it depends when the lease was signed. The bank would be stupid to kick out paying tenants. However, if someone buys the building from the bank they could have other uses for the building.

Well, of course. If the ex-owner entered into a lease after the bank foreclosed, he has no authority to bind the actual owner of the property. However, the bank (or a seller at a foreclosure sale) takes title incident to the leases already in place prior to foreclosure/sale.

(09-17-2014 03:25 PM)MemphisCanes Wrote:  

(09-17-2014 03:21 PM)mairving Wrote:  

(09-17-2014 11:30 AM)MemphisCanes Wrote:  

(09-17-2014 10:52 AM)poppaslaw Wrote:  Our office is in the Crow's Nest on top of Clark Tower. We moved here in '06. At least two more years left on our lease.

Wonder what this means for all tenants.

Nothing, really. Your leases will survive any transfer of ownership.

I think it depends when the lease was signed. The bank would be stupid to kick out paying tenants. However, if someone buys the building from the bank they could have other uses for the building.

Well, of course. If the ex-owner entered into a lease after the bank foreclosed, he has no authority to bind the actual owner of the property. However, the bank (or a seller at a foreclosure sale) takes title incident to the leases already in place prior to foreclosure/sale.

Unless the statute has changed leases do not survive a foreclosure [allegedly]

leases survive a normal sale but not a foreclosure . [allegedly]

Most entities that foreclose will make written arrangements asap with tenants to keep some cash flow coming in.

Light at the end of the tunnel?

http://www.bizjournals.com/memphis/news/...l?page=all

(09-17-2014 04:26 PM)BinghamptonNed Wrote:  

(09-17-2014 03:25 PM)MemphisCanes Wrote:  

(09-17-2014 03:21 PM)mairving Wrote:  

(09-17-2014 11:30 AM)MemphisCanes Wrote:  

(09-17-2014 10:52 AM)poppaslaw Wrote:  Our office is in the Crow's Nest on top of Clark Tower. We moved here in '06. At least two more years left on our lease.

Wonder what this means for all tenants.

Nothing, really. Your leases will survive any transfer of ownership.

I think it depends when the lease was signed. The bank would be stupid to kick out paying tenants. However, if someone buys the building from the bank they could have other uses for the building.

Well, of course. If the ex-owner entered into a lease after the bank foreclosed, he has no authority to bind the actual owner of the property. However, the bank (or a seller at a foreclosure sale) takes title incident to the leases already in place prior to foreclosure/sale.

Unless the statute has changed leases do not survive a foreclosure [allegedly]

leases survive a normal sale but not a foreclosure . [allegedly]

Most entities that foreclose will make written arrangements asap with tenants to keep some cash flow coming in.

Which statute are you referring to?

(09-18-2014 09:34 PM)MemphisCanes Wrote:  

(09-17-2014 04:26 PM)BinghamptonNed Wrote:  

(09-17-2014 03:25 PM)MemphisCanes Wrote:  

(09-17-2014 03:21 PM)mairving Wrote:  

(09-17-2014 11:30 AM)MemphisCanes Wrote:  Nothing, really. Your leases will survive any transfer of ownership.

I think it depends when the lease was signed. The bank would be stupid to kick out paying tenants. However, if someone buys the building from the bank they could have other uses for the building.

Well, of course. If the ex-owner entered into a lease after the bank foreclosed, he has no authority to bind the actual owner of the property. However, the bank (or a seller at a foreclosure sale) takes title incident to the leases already in place prior to foreclosure/sale.

Unless the statute has changed leases do not survive a foreclosure [allegedly]

leases survive a normal sale but not a foreclosure . [allegedly]

Most entities that foreclose will make written arrangements asap with tenants to keep some cash flow coming in.

Which statute are you referring to?

It is business law 101 that leases are terminated by a foreclosure ..

(09-22-2014 07:18 PM)BinghamptonNed Wrote:  

(09-18-2014 09:34 PM)MemphisCanes Wrote:  

(09-17-2014 04:26 PM)BinghamptonNed Wrote:  

(09-17-2014 03:25 PM)MemphisCanes Wrote:  

(09-17-2014 03:21 PM)mairving Wrote:  I think it depends when the lease was signed. The bank would be stupid to kick out paying tenants. However, if someone buys the building from the bank they could have other uses for the building.

Well, of course. If the ex-owner entered into a lease after the bank foreclosed, he has no authority to bind the actual owner of the property. However, the bank (or a seller at a foreclosure sale) takes title incident to the leases already in place prior to foreclosure/sale.

Unless the statute has changed leases do not survive a foreclosure [allegedly]

leases survive a normal sale but not a foreclosure . [allegedly]

Most entities that foreclose will make written arrangements asap with tenants to keep some cash flow coming in.

Which statute are you referring to?

It is business law 101 that leases are terminated by a foreclosure ..

its apparent that neither of you know anything about real estate or the law

http://pftlegal.com/wp-content/uploads/2...-Lease.pdf

(09-23-2014 11:07 AM)btiger Wrote:  

(09-22-2014 07:18 PM)BinghamptonNed Wrote:  

(09-18-2014 09:34 PM)MemphisCanes Wrote:  

(09-17-2014 04:26 PM)BinghamptonNed Wrote:  

(09-17-2014 03:25 PM)MemphisCanes Wrote:  Well, of course. If the ex-owner entered into a lease after the bank foreclosed, he has no authority to bind the actual owner of the property. However, the bank (or a seller at a foreclosure sale) takes title incident to the leases already in place prior to foreclosure/sale.

Unless the statute has changed leases do not survive a foreclosure [allegedly]

leases survive a normal sale but not a foreclosure . [allegedly]

Most entities that foreclose will make written arrangements asap with tenants to keep some cash flow coming in.

Which statute are you referring to?

It is business law 101 that leases are terminated by a foreclosure ..

its apparent that neither of you know anything about real estate or the law

Sorry to break it to you BT. I know a great deal about real property law, but most of my experience is on the residential side. Residential leases are not severed by foreclosure, I don't know about commercial foreclosure. All sales by owner, whether residential or commercial, are taken incident to any leases (with certain exceptions) as I pointed out above unless otherwise negotiated with the tenant.

(09-23-2014 12:49 PM)MemphisCanes Wrote:  

(09-23-2014 11:07 AM)btiger Wrote:  

(09-22-2014 07:18 PM)BinghamptonNed Wrote:  

(09-18-2014 09:34 PM)MemphisCanes Wrote:  

(09-17-2014 04:26 PM)BinghamptonNed Wrote:  Unless the statute has changed leases do not survive a foreclosure [allegedly]

leases survive a normal sale but not a foreclosure . [allegedly]

Most entities that foreclose will make written arrangements asap with tenants to keep some cash flow coming in.

Which statute are you referring to?

It is business law 101 that leases are terminated by a foreclosure ..

its apparent that neither of you know anything about real estate or the law

Sorry BT. I know a great deal about real property law, but most of my experience is on the residential side. Residential leases are not severed by foreclosure, I don't know about commercial foreclosure. All sales by owner, whether residential or commercial, are taken incident to any leases as I pointed out above.

From the paper linked above:

Quote: I. Subordination, Non-Disturbance and Attornment Agreement
In general, a properly conducted foreclosure sale will terminate subordinate
leases,

Also, Residential leases were generally terminated by foreclosure until the last few years. [/quote]

(09-23-2014 12:52 PM)BinghamptonNed Wrote:  

(09-23-2014 12:49 PM)MemphisCanes Wrote:  

(09-23-2014 11:07 AM)btiger Wrote:  

(09-22-2014 07:18 PM)BinghamptonNed Wrote:  

(09-18-2014 09:34 PM)MemphisCanes Wrote:  Which statute are you referring to?

It is business law 101 that leases are terminated by a foreclosure ..

its apparent that neither of you know anything about real estate or the law

Sorry BT. I know a great deal about real property law, but most of my experience is on the residential side. Residential leases are not severed by foreclosure, I don't know about commercial foreclosure. All sales by owner, whether residential or commercial, are taken incident to any leases as I pointed out above.

From the paper linked above:

Quote: I. Subordination, Non-Disturbance and Attornment Agreement
In general, a properly conducted foreclosure sale will terminate subordinate
leases,

Also, Residential leases were generally terminated by foreclosure until the last few years.

Please look up the Protecting Tenants at Foreclosure Act, and enlighten yourself.

(09-23-2014 12:54 PM)MemphisCanes Wrote:  

(09-23-2014 12:52 PM)BinghamptonNed Wrote:  

(09-23-2014 12:49 PM)MemphisCanes Wrote:  

(09-23-2014 11:07 AM)btiger Wrote:  

(09-22-2014 07:18 PM)BinghamptonNed Wrote:  It is business law 101 that leases are terminated by a foreclosure ..

its apparent that neither of you know anything about real estate or the law

Sorry BT. I know a great deal about real property law, but most of my experience is on the residential side. Residential leases are not severed by foreclosure, I don't know about commercial foreclosure. All sales by owner, whether residential or commercial, are taken incident to any leases as I pointed out above.

From the paper linked above:

Quote: I. Subordination, Non-Disturbance and Attornment Agreement
In general, a properly conducted foreclosure sale will terminate subordinate
leases,

Also, Residential leases were generally terminated by foreclosure until the last few years.

Please look up the Protecting Tenants at Foreclosure Act, and enlighten yourself.

you mean the act passed after the foreclosure crisis in 2009?

(09-23-2014 01:11 PM)BinghamptonNed Wrote:  

(09-23-2014 12:54 PM)MemphisCanes Wrote:  

(09-23-2014 12:52 PM)BinghamptonNed Wrote:  

(09-23-2014 12:49 PM)MemphisCanes Wrote:  

(09-23-2014 11:07 AM)btiger Wrote:  its apparent that neither of you know anything about real estate or the law

Sorry BT. I know a great deal about real property law, but most of my experience is on the residential side. Residential leases are not severed by foreclosure, I don't know about commercial foreclosure. All sales by owner, whether residential or commercial, are taken incident to any leases as I pointed out above.

From the paper linked above:

Quote: I. Subordination, Non-Disturbance and Attornment Agreement
In general, a properly conducted foreclosure sale will terminate subordinate
leases,

Also, Residential leases were generally terminated by foreclosure until the last few years.

Please look up the Protecting Tenants at Foreclosure Act, and enlighten yourself.

you mean the act passed after the foreclosure crisis in 2009?

Yes. The current year is 2014,and the act is currently in effect.

(09-17-2014 03:25 PM)MemphisCanes Wrote:  

(09-17-2014 03:21 PM)mairving Wrote:  

(09-17-2014 11:30 AM)MemphisCanes Wrote:  

(09-17-2014 10:52 AM)poppaslaw Wrote:  Our office is in the Crow's Nest on top of Clark Tower. We moved here in '06. At least two more years left on our lease.

Wonder what this means for all tenants.

Nothing, really. Your leases will survive any transfer of ownership.

I think it depends when the lease was signed. The bank would be stupid to kick out paying tenants. However, if someone buys the building from the bank they could have other uses for the building.

Well, of course. If the ex-owner entered into a lease after the bank foreclosed, he has no authority to bind the actual owner of the property. However, the bank (or a seller at a foreclosure sale) takes title incident to the leases already in place prior to foreclosure/sale.

I have been pretty nice in this thread and have been 100% correct.

Here is another example of you speaking up when you did not have facts on your side.

(09-23-2014 02:44 PM)BinghamptonNed Wrote:  

(09-17-2014 03:25 PM)MemphisCanes Wrote:  

(09-17-2014 03:21 PM)mairving Wrote:  

(09-17-2014 11:30 AM)MemphisCanes Wrote:  

(09-17-2014 10:52 AM)poppaslaw Wrote:  Our office is in the Crow's Nest on top of Clark Tower. We moved here in '06. At least two more years left on our lease.

Wonder what this means for all tenants.

Nothing, really. Your leases will survive any transfer of ownership.

I think it depends when the lease was signed. The bank would be stupid to kick out paying tenants. However, if someone buys the building from the bank they could have other uses for the building.

Well, of course. If the ex-owner entered into a lease after the bank foreclosed, he has no authority to bind the actual owner of the property. However, the bank (or a seller at a foreclosure sale) takes title incident to the leases already in place prior to foreclosure/sale.

I have been pretty nice in this thread and have been 100% correct.

Here is another example of you speaking up when you did not have facts on your side.

I specified that I should have said residential foreclosure. As for any sale prior to a security agreement, I was 100% correct on both the residential and commercial sides.

You referenced a statute that protected banks in (any type of) foreclosures, and I wasn't aware of this statute, which is why I asked you for a citation. I'm still waiting on that, BTW.