'As Is' Deals: What Do the Parties Really Mean?
October 01, 2003
In today's competitive commercial real estate market, landlords and tenants spend much time and effort to structure lease transactions to add value to their respective portfolios. They each factor into their economic analysis relevant concerns such as rent, construction costs, construction build-out periods, operating expenses and revenue forecasts. An additional factor that should be considered in this process is the cost incurred by both parties to administer the lease obligations during the lease term for ongoing maintenance, repair and replacement items.
In the Spotlight: Agreement to Agree, Enforceable?
October 01, 2003
Recently, the Court of Special Appeals of Maryland held that a letter of intent was binding on the parties. <i>Windsor Development, L.L.C. v. Clearcomm Technologies, Inc., No. 999 (Md.App. filed Aug. 5, 2002).</i> The court granted a summary judgment motion enforcing the provisions of the letter of intent relying on the "plain and unambiguous" language.
Methods for Securing Against Tenant Defaults
October 01, 2003
Security deposits are an age-old form of security for the performance of the tenant's obligations under a lease. In the simplest of transactions, the tenant deposits a fund with the landlord to be used to protect the landlord against the economic consequences of a tenant's default. The amount of the fund is the product of negotiations and usually involves a multiple of the monthly rent payable under the lease. In more sophisticated commercial transactions with other than the most creditworthy of tenants, the landlord wants the tenant to deposit a substantial sum, perhaps a multiple of the yearly rent payable under the lease, especially if the landlord pays for substantial tenant improvements. <p><i>Part Two of a Two-Part Series</i>
The Leasing Hotline
October 01, 2003
Highlights of the latest commercial leasing cases from around the country.
The Unfriendly California Skies: Avoiding Sales/Use Tax on Aircraft Purchases
October 01, 2003
Imagine getting slapped with a $100,000 past-due tax bill from the state of California several years after you purchased an aircraft, and you don't even live in that state. Think it can't happen? Better think again, as this type of scenario plays out with increasing frequency as California grapples with perennial budget shortages.
Private Leasing Companies Can't Ignore Sarbanes-Oxley
October 01, 2003
According to AMR Research, which recently surveyed 60 Fortune 1,000 companies, it is estimated that the Fortune 1,000 will spend $2.5 billion in 2003 alone in costs associated with Sarbanes-Oxley Act compliance. How much more will be spent by smaller public companies and by those in the private-company sector is a mystery, but the total costs - in cash, time, consulting fees, lost opportunities, and human resources - will surely be staggering.
A Primer on Portfolio Management Options for Parents and Captives
October 01, 2003
Imagine receiving a call from corporate indicating that your captive team has done a wonderful job of providing financing for your manufacturer parent organization. In fact, as a result of this excellent performance the parent company's leverage ratio is reaching the point that its financial rating may be reduced by the rating agencies. This is the type of good news/bad news call most captive managers would rather not receive.
In the Marketplace
October 01, 2003
Highlights of the latest equipment leasing news from around the country.
Homeland Security Technology: An Investor's Perspective
October 01, 2003
When you look at the financial sections of newspapers and magazines over the past few months, you get the sense that capital, entrepreneurs and technology innovators are flowing toward a new homeland security space ' a market in which the buyer is essentially one customer: the federal government.
Venture Capitalists: They're No Angels
October 01, 2003
Although angels invest at a lower price, VCs usually ask for and get better terms for their money. Why don't angels do the same? Angel investor. Venture capitalist. Many investors would like to be one or both. Yet few know the distinction between the two - or which is more advantageous.
