Even Landlords Don't Want Blockbuster
|The McKinney Ave. landlord figures it can do better than a Blockbuster.|
Earlier this week, the owner of the Uptown property -- home to that particular Blockbuster since October 1996 -- told the court: Thanks, but we'll pass. The reason: 3501 McKinney, Ltd.'s attorney, Elisabeth Wilson (who's also based in Renaissance Tower, oh, irony), writes that Dish has given the landlord no "adequate assurance" that Dish's newly former BBI Operating, L.L.C. will do any better with Blockbuster than Blockbuster did with Blockbuster. Says the filing, Dish ...
...failed to provide 3501 McKinney with current audited financial statements or other financial and operating information to assist 3501 McKinney in making a determination of whether a potential assignee is capable of: (a) financially performing under the Lease; (b) providing 3501 McKinney with adequate assurance for the payment of future rent and performance of all obligations set forth in the Lease, such as the property tax obligation; and (c) whether its operating performance is at a similar level as the Debtors' performance at the time the parties entered into the Lease.So it wants out. Now. Says one friend in commercial real estate, this isn't much of a surprise, given that landlords carrying Blockbuster leases figure they can get higher rents from a tenant that, say, wasn't in Chapter 11 since September and dying long before that. Which is why several other landlords have filed similar objections this week.