936 Second Avenue L.P. v. Second Corporate Development Co. Inc.

Second Corporate Development Co. (defendant) signed a 20-year net lease for a New York City mixed-use property owned by 936 Second Avenue L.P. (plaintiff). Rent for each 10-year renewal term was to be set at 7 percent of the property's value. The parties' appraisers reached very different valuations, and 936 Second argued that the lease itself and its terms had to be factored into the appraisal.

Whether the effect of an existing net lease must be considered when valuing property to set rent for a renewal term, absent an agreement to the contrary.