October 29, 2013 News

School of Visual Arts Closes on New Student Residence

Morrison Cohen has represented the School of Visual Arts in its successful acquisition, under a long-term triple net lease, of a new 500-bed student residence for SVA students, at 407 First Avenue in Manhattan.  A developer is building the residence and net leasing it to SVA for a 40-year term, with renewal options that bring the full term to almost 60 years.  SVA also has options to purchase the building at various times. The total amount of rent to be paid under the lease comes to several hundred million dollars.

Morrison Cohen’s services included the negotiation of the triple net lease, assisting in the finalization of comprehensive construction plans and specifications, the review and revision of documents for condominium registration of the building, arrangements for the issuance of substantial letters of credit from a large bank, the retention of a construction consulting company to represent the school with respect to approval of the initial plans and specifications and close monitoring of the construction process, as well as other matters. 

The entire transaction, which from start to finish lasted seven months, was handled for SVA by a sole senior lawyer in Morrison Cohen’s Real Estate department. The Morrison Cohen lawyer negotiated against multiple teams of lawyers representing the other parties to the transaction and completed the deal with notable efficiency. Morrison Cohen is delighted to have been able to serve its client, and to demonstrate again its strength in providing partner-level attention and experience in a cost-effective manner.