Live Nation being sued over the 42nd Street McDonald's
Posted by: mikem04:53 pm EST 11/25/20
There is an article in today's Billboard Bulletin about the 42nd Street McDonald's, which says that it was the busiest and most profitable McDonald's franchise in the nation. Apparently, McDonald's was actually subleasing the space from Live Nation, the concert promoter, whose 20-year lease on the space expired in Sept 2020.
The owners of the space are suing Live Nation because they say that McDonald's made a bunch of changes, including installing restaurant equipment like freezers, creating the mezzanine, and changing the heights between the floors and the ceilings, so they can't rent the space out until the space gets restored, which they say will take over a year. So they are suing for $47 million for the cost of restoration and the lost rent revenue. The rent is over $2 million a month, although I believe that is the cost for the entire building, not just the McDonald's portion.
The article speculated that the lawsuit is a maneuver and if they would just get rid of the restaurant equipment, the lawsuit will go away. I guess it's true that the current configuration will the mezzanine would probably only work for another fast food place, because that mezzanine is pretty cramped for other retail. But will anyone sign a lease for such a large tourist-dependent space?