Lever House’s Ground Lease Restructuring

Olshan Frome Wolosky advised the Korein family in the restructuring of the ground lease at the Lever House.

The Lever House, built in 1952 and known for its beautiful blue-green glass curtain-wall, is one of the most prestigious office buildings in New York.

The restructuring involved an amendment of the existing ground lease with the tenant, a joint venture of Waterman and Brookfield, and the extinguishment of a prior ground lease held by RFR. RFR retained a subordinated interest in the ground lessee going forward. The restructuring ended several years of litigation and uncertainty and sets the building on a path to continued prominence.

The lease has now been recast to have started on May 20, 2020. It is also valued at $240 million over the term of the lease which ends on May 31, 2100.

The Korein family has owned the fee position since 1985 when it was acquired by Sarah Korein, the grandmother and great grandmother of the current controlling family members.

Olshan team advising the Korein family was led by Sam Ross (Picture) and included Tom Kearns, Dov Brandstatter, Hyman Kindler, Tom Fleming, and Vesna Naidoo-Chinsammy.

Involved fees earner: Dov Brandstatter – Olshan Frome Wolosky LLP; Thomas Fleming – Olshan Frome Wolosky LLP; Thomas Kearns – Olshan Frome Wolosky LLP; Hyman Kindler – Olshan Frome Wolosky LLP; Vesna Naidoo-Chinsammy – Olshan Frome Wolosky LLP; Samuel Ross – Olshan Frome Wolosky LLP;

Law Firms: Olshan Frome Wolosky LLP;

Clients: Korein Family;

Author: Ambrogio Visconti