Landlord Enters Into Commercial Lease with Restaurant Operator in the Heart of Fishtown

The Challenge

The proposed lease arrangement involved more than a standard commercial leasing transaction. In addition to leasing the ground floor of the client’s building, the restaurant operator intended to lease the neighboring property and physically connect the two spaces by opening the walls between the buildings.

As a result, the transaction required both negotiation of a commercial lease with the restaurant operator and a separate agreement involving the owner of the adjacent property.

The parties also needed to ensure that the neighboring properties remained financially and operationally protected throughout the arrangement, including confirmation that mortgages, insurance obligations, taxes, utilities, and title-related matters remained properly maintained.

The Solution

Nochumson P.C. reviewed the letter of intent between the landlord and the restaurant operator before drafting the commercial lease agreement reflecting the terms negotiated by the parties.

Following several rounds of lease revisions, the firm also drafted a separate agreement between the client and the neighboring property owner addressing issues related to the adjacent lease arrangement and ongoing property obligations.

The agreements were ultimately executed, allowing the restaurant operator to move forward with combining the two spaces into one restaurant operation.

Letters of intent in commercial leasing transactions can establish the framework for negotiations, but additional agreements are often necessary when multiple properties or ownership interests are involved.

The Results

After the agreements were finalized and executed, the restaurant operator opened for business in the combined restaurant space in Fishtown.

The restaurant has since become widely recognized as one of the most popular dining destinations in Philadelphia.