[ARA] 2021-02-17 Car Call

Recording

 

Notes

20210217 ARA Car Call Notes

  • Agenda: JB has 15 Minutes now, and 20 minutes on ride back if needed.
  • Apartment Options
    • 1. Proceed this deal as it is.
      • Path of least resistance.
      • Might be fine.
      • Also most expensive outcome.
    • 2. Talk to lawyer about riders
      • This will help us counter their offer.
      • Questions for a lawyer:
        • Do we simply ask them to change the terms of the lease without a formal rider?
          • Eg: “This lease looks great. However, the early termination rider is important. The whole point is that right now, the rent is depressed. So can we change the terms i.e. I will refund one month’s concessions and 3 months rent; etc.”
        • Do we request a formal rider?
      • Draft an email to Bill Sacks (lawyer)
        • Dear Bill,
        • I have been approved for the apartment. Many thanks again for swiftly getting me the letter and tax returns.
        • I am receiving 3 “free” months each 12 month period, over a 24 month lease.
        • If I break the lease in the first 12 months, the penalty is 6 months, corresponding to 3 months termination fee and 3 months return of the concession for that first year.
        • If I break the lease in the second year, the penalty is 9 months, corresponding to 3 months termination fee, and a return of all concessions.
        • I have not seen the lease yet, but these are the terms have been communicated to me via email through my broker.
        • I realize that the concessions are recognizing that this is a soft market, without the Building having to change their monthly rate.
        • I am happy to benefit from these concession, however the early termination penalties then seem onerous.
        • I would like to engage an expert with a knowledgeable expert about my options for negotating more favorable termination terms.
        • Are you able to consult on this?
          • Don’t think more laterally.
          • Think laterally.
        • The penalty for breaking the lease is 6 months rent if lease broken in the first year (3 month early cancellation fee, and a return of first year concessions), and 9 months’ rent if lease broken any time during the second year (2 month early cancellation fee and return of all concessions)
        • I would like to speak to a lawyer who can advise me regarding how to proceed to receive the most favorable terms, and limit my financial liability.
        • I need to know the following:
          • 1. Though the building has said that they are not doing early termination riders at this, should I press for one?
          • 2. Should I ask them to change the terms of the lease to reduce the penalty and concession return?
        • Is this something you could advise me on? I would compensate you for your time.
        • If not, can you refer me to someone you trust?
        • Many thanks,
        • Aprajita
    • 3. Best Alternatives
      • This will give me a BATNA position.
      • Contact Dino regarding this apartment and others in the building
        • Emailed (Sunday 02/14)
        • Phoned (Wednesday 02/17)
      • Search for an alternative apartment
        • Dear Taruna,
        • Jeff has advised me that to be in the strongest possible negotiating position, it would be wise for me to find another option now that could be a viable contender.
        • Can you queue up quickly some viewings for me tomorrow and Friday?
        • I am interested in apartments in pre-war buildings, since I think I’ve seen enough cookie-cutter high rises, and 125 Court Street was certainly the best of those by far.
        • Many thanks,
        • Aprajita
  • Spreasheet
  • Apartment Furniture Budget
    • JB Says ok to splurge a bit on myself.
    • I agree!