Another Greedy Landlord Destroys an Institution

Is Lenny bringing the food?
 
From what I've read...eh.

Did I mis-interpret you or do you OWN a Subway and a hot dog stand?

No Greg.... I'm the landlord along with the rest of the family.

 There's a story (or several) here & there...
 
 http://behindthefood.wordpress.com/2010/03/10/15/

In other words you are a group owner?

Why are you so interested?  Family of 3.

CC, you are great!  Interesting facts.
 
 

No other reason then I was curious and a bit surprised as well!

CCinNJ


Most people don't get that Los Angeles & NYC real estate is a different world.

I doubt that, all landlords want the most out of their property, little guys or corporations.
All landlords want the most stable long term tenants they can get.
All tenants will cry broke when negotiating a lease even the big boys.
So tell us the difference.

mar52



Hope that Lenny's paid Juniors well for that phone number.

I don't see why, Juniors walked away.

mar52

Hope that Lenny's paid Juniors well for that phone number.

I don't see why, Juniors walked away.

 
Because Junior's said plan was to open elsewhere.  The phone number does not belong to the address.
 

All landlords are not stable in ownership. The stakes in the biggest markets are beyond numbers that any individual or small business could ever dream of purchasing...in the current market.
That's why property ownership changes so often. You can look at how many arrests for wire fraud racketeering money laundering bribery ponzi schemes  are made in THESE real estate sectors before during or after the fact of flip after flip of large commercial properties....in THESE markets.
 
It's also a market that's driven by the invest of OPM (other peoples money) into REITs and many of those small individual investors are left with no chair when the music stops playing.
  
 

CCinNJ


All landlords are not stable in ownership. The stakes in the biggest markets are beyond numbers that any individual or small business could ever dream of purchasing...in the current market.
That's why property ownership changes so often. You can look at how many arrests for wire fraud racketeering money laundering bribery ponzi schemes  are made in THESE real estate sectors before during or after the fact of flip after flip of large commercial properties....in THESE markets.

It's also a market that's driven by the invest of OPM (other peoples money) into REITs and many of those small individual investors are left with no chair when the music stops playing.
 

If this was true there would be no corner stores or any small businesses left in LA or NY.
All neighborhoods eventually get redeveloped or rot and fall down,  the original owners (Mom & Pop) are the ones that start the cycle by getting more than market value.
In my case I paid 120,000 in 1998, with redevelopment of the area and time it's now worth 500,000, I would take 750,000. The rent would justify the 500,000 but I still want 750,000. If I put a sign out I might get it, the new landlord will have to cover the cost with rent increases. That's business. If the tenants don't like it the new tenants will.

mar52

mar52

Hope that Lenny's paid Juniors well for that phone number.

I don't see why, Juniors walked away.

Because Junior's said plan was to open elsewhere.  The phone number does not belong to the address.

So Juniors knew Lenny's wanted the place and made a deal so Juniors wasn't cheated. If Juniors was going to reopen no way he gives up the number even if it's out of the area.
Unless he was paid more than it was worth now he's like the landlord that wants too much.

You can equate your situation to the rental landscape of Los Angeles & NYC.
 
That does not make them the same...but whatever. Have at it!
 
ALL landords don't suck.
 
The rental landscape in Los Angeles & NYC is a big factor in why many Roadfood establishments and many entire catagories of Roadfood disappear.
 
That's a shame...when we're talking about beloved Roadfood places that were a fixture for many years. This is Roadfood. 
  
There's more to the story in the case of Junior's/Lenny's. That's so much more interesting than the yada yada all landlords/all tenants debate. We'll just have to put that particular puzzle together.

Selling a valuable phone number for a high price is not like a greedy landlord.   I have it... you want it... $$$
 
And then...
 
Eminent domain happens.  The city or the state is the real owner.
 
In my case the city tried to have one of our buildings classified as a historical.  We fought it and won as the city that was pushing the cause was not the city the building sits in... it was adjacent.
 
They would put up a plaque and we would not have had any control of our own property had that occurred.
 
 
 
 

There's no such thing as a greedy landlord, just some who maximize their investment and some that don't. Smart business people and not so smart. Just like I have it you want it $$$.
LA & NYC, just the same as everywhere else, time doesn't stand still if you're not moving ahead you're falling behind, no exceptions even for Roadfood.

Your opinion is on the record. Enjoy your vacation.
 
 
 
 

Ice Cream Man


There's no such thing as a greedy landlord, just some who maximize their investment and some that don't. Smart business people and not so smart. Just like I have it you want it $$$.
LA & NYC, just the same as everywhere else, time doesn't stand still if you're not moving ahead you're falling behind, no exceptions even for Roadfood.

MetroplexJim

saps


The ignorance of some people on these boards is amazing.  The old "greedy landlord" stereotype.  A landlord runs a business, just like anyone else.  He typically has a mortgage to pay, real estate taxes, insurance, and operating costs just like anyone else.  He takes real economic risk in the possibility that he loses tenants- at certain times, depending upon the economy, he has to take on expensive build-outs or rent abatements at his own risk.  Most investment property owners aren't rich, and they struggle along in these economies just like everyone else.

Given the choice, a landlord would be a fool not to take a Chase Bank over a Roadfood joint.  Chase is a tenant that would sign a corporate lease, pay more than a local joint, sign a longer term triple-net lease, and is an accredited tenant.  If you're a landlord and you're interested in taking care of your family, you would make that deal in a heartbeat, and you would only be incurring risk by re-signing a restaurant, especially in these times.  Moreover, why is it OK for a Roadfood joint to try and be successful, while it's not OK for the landlord to do his best to be successful?  Why is it that the landlord is responsible for his tenant beyond the stipulations of the lease?  If you've ever owned a property, you know the risks and benefits of ownership.  If you've ever had a building go under 50% occupancy, had it foreclosed upon, and had it taken by the bank, you know the risks.  Most people don't get it.  The "rich, greedy, landlord" stereotype is such a convenient crutch to fall on.  When times are tough, do you know who usually gets paid last?  The landlord. 

If you've ever sat in a courtroom trying to get back 8 months of rent after a tenant has moved out in the middle of the night because he got a better deal somewhere else and has stiffed you, and you've spent substantial $$ on attorneys fees and your time, you might have an idea what I'm talking about.  I don't understand why people think it's OK for a individual to go to work and try to make as much money as he or she can everyday, but it's not OK for a landlord to insure that he or she has the most secure tenant possible that maximizes their profit.  Truly, if a store owner or a restaurant can't pay the going lease rate, is that the landlord's fault?  If the landlord gives the tenant a sweetheart deal and ultimately is overwhelmed by rising expenses over the lease term, who takes care of the "evil landlord"?  And what happens if a less secure tenant goes out of business, leaving the "greedy landlord" with a vacant building, but still with a mortgage, utilities, and taxes to pay?  I guess the "greedy landlord" just deserves that.

Thank you, saps, for having the patience to write the simple truth in a calm, evocative, eloquent manner.  In the present environment I just cannot "do" calm.

Presently, I teach economics and own properties.  In the former I earn an ever-growing income ( & benefits + pension); in the latter, my net has fallen by 70% over the past five years to the point where I pay more in property tax than I net.

As is typical for those of us who turn 65 as I did last month, I look back and contemplate how life may have been had I taken a different path.  Frankly, the "greediest" path not taken was my declining, at 30, a GS-13/14 position with the then newly formed Department of Energy.  At that point "the Administration" was having a difficult time making breeder reactor technology (falsely) "look bad" and it, evidently, needed a man of my talents.  Had I signed on for that in 1978, today's 'financial worst case' (should I have spent 35 years being a vegetable with just a sandwich and the Washington Post in my fine leather briefcase) would be $160K + benefits and entitlement at any time to take a $100K + benefits pension + a 'double dip' for social security benefits earned prior to government "service".

But, someone took that job.

Maybe that individual, like a grad-school buddy, did something truly spectacular:  like earning his 10,000th. Master Point in Contract Bridge while on the government teat payroll.

You and I are still paying ....  and that individual is laughing, and will brag at his next class reunion about the immense POWER he has exercised during his 'career' as a 'public servant'.

I'm glad that was a "road not taken"; in one way or another I would have died from some manifestation of shame years ago.

Edit:  I find it terribly amusing that someone saw fit to "flag" this personal reminiscence/reflection.

Whomever,Whoever, Whatever flagged this post it the Idiot, not you or SAP.

CCinNJ


Your opinion is on the record. Enjoy your vacation.

Does that mean you give up ? Enjoy the snow.

There's nothing to give up. Enjoy some Roadfood!

mar52


Selling a valuable phone number for a high price is not like a greedy landlord.   I have it... you want it... $$$

And then...

Eminent domain happens.  The city or the state is the real owner.

In my case the city tried to have one of our buildings classified as a historical.  We fought it and won as the city that was pushing the cause was not the city the building sits in... it was adjacent.

They would put up a plaque and we would not have had any control of our own property had that occurred.

I don't see the difference between selling a phone number at a high price or the "greedy" landlord.  Both have something that has value that someone else wants.  In either case, if the price is too high, the landlord doesn't lease his property or the seller doesn't sell the phone number.  And if a deal is struck on either, it's because both parties (buyer/seller, or lessor/lessee) came to an agreement.  And if the tenant is asking for less than market value, doesn't that make him greedy, or is he just trying to get the best deal for him/herself?  What is the line between greedy and acceptable, and who gets to determine that? 

Sometimes the cost of doing business needs to be reassessed.
 
A landlord collects triple net which is not only the rent, but every other bill related to the building a person is renting like taxes, licenses, building maintenance, etc.... 
 
The lease states that rent goes up 5% or the cost of living, whichever is lower every year....
 
The economy tanks... stores are closing everywhere...
 
A smart landlord will say...  no need to raise the rent this year or I'm giving you a break in the rent this next year or for 3 or 6 months...
 
The greedy landlord says..  Pay the raise or move out... it's in the lease.
 
Just my opinion as a leasee and a lessor.
 
There are some landlords that forgive months of rent due to bad times.  The greedy do not.
 
Of course it's their building and they can do what they want in the course of doing their business as landlords.  I'm not saying that they can't. 
 
There are just some that are for a better word... greedy.

OK- I get that- that's a good explanation.  I've had to do that with tenants- I had one who I froze rent for 4 years in a flourishing downtown area.  Unfortunately, got burned in the end when she moved out, and pulled the sinks out of the wall and other fixtures, but not enough damage to get attorneys involved.

I guess there would be a case that I would do that but not likely.
First, the rent is or should be a small potion of your gross. Lets say the rent is 20,000 I don't raise it 5% instead I give you a 10% discount. So I'm saving you 2,000 a year. There is no way in the world that is going to save your business. If the rent is truly to much you are already screwed. My biggest problem with cutting a tenants rent is if they can't pay I want them out as soon as possible so I don't miss a good tenant. I would rather have the unit empty for 6 months until a good tenant comes along.

I still don't agree with the word greedy.
If the landlord sets a price he needs and the tenant won't pay the tenant leaves and the landlord rents the place for his price he made a wise business move. He got what he needed, nothing to do with greed. Everything in this world is only worth what someone is willing to pay. The difference between the struggling business people and the successful ones are how much nerve you have when you price something. I don't know how many times I have read on here that people are selling a top quality product cheap and struggling because the say that's all the customers in their area will pay. You can't let your customers or your tenants set your prices, prices are set by analysing your costs. 

You're placing your bets on the possibility that times would not turn around AND that your next tenant will make a go of it. 
 
There usually is at least a few months lapse with no income for the landlord between tenants unless like in Junior's case... the next tenant is the exact same business.
 
On Ventura Boulevard where my store sat the For Lease signs were in the windows for many months to over a year or more.
 
I always joked that the business to be in was the one that printed For Lease signs.

You're placing a bet on someone who has flipped the majority previous ventures to other parties that are yet to be determined...so no way to bank on them.

You're banking on someone who just came from a short-term venture that is identical to the current venture...with very poor ratings/results...

vs. the long-term established successful tenants that had a following...and many loyal customers. Many of them won't be customers of Lenny's based on the feedback attached to every story written about the news.

I'm not sure where the 25 bakeries & delis throughout NY & NJ are/were.

I know of one bakery in NJ.

mar52


You're placing your bets on the possibility that times would not turn around AND that your next tenant will make a go of it. 

There usually is at least a few months lapse with no income for the landlord between tenants unless like in Junior's case... the next tenant is the exact same business.

On Ventura Boulevard where my store sat the For Lease signs were in the windows for many months to over a year or more.

I always joked that the business to be in was the one that printed For Lease signs.

That's exactly right. It's what being a landlord means, getting as much for your property as possible when it is rented to a good tenant. Not letting a bad tenant tell you what your property is worth. Realizing that over your span of ownership there will be times the building will be empty.