J.W. Mays, Inc. (NASDAQ:MAYS) Files An 8-K Entry into a Material Definitive Agreement
Item 1.01 Entry into a Material Definitive Agreement.
The Company, as lessor, has entered into a lease amendment (the “Amendment”) with Marvarino’s, Inc. d/b/a Cookies Department Store, as lessee (“Cookies”) relating to space that the Company has leased to Cookies in the Company’s Nine Bond Street, Brooklyn, New York building. The Amendment is dated as of June 1, 2020 and will become effective as of June 29, 2020.
Significant items contained in the Amendment are as follows:
1) The overall rental for the space that Cookies will retain has been reduced by approximately 50%. The new Fixed Rent for the period beginning June 1, 2020 and continuing through May 31, 2025 will be $1,500,000 per year. The new Fixed Rent for the period beginning June 1, 2025 and continuing through May 31, 2030 will be $1,680,000 per year.
2) The two renewal options that had been in the lease with Cookies have been replaced by one renewal option. Cookies will have the option to renew the lease term for one five-year period beginning June 1, 2030 and continuing through May 31, 2035 at the Fixed Rent of $1,881,600 per year.
3) Cookies has surrendered the following space:
a) On or about June 20, 2020—13,200 square feet of space on the third floor; and
b) On or about August 15, 2020—49,941 square feet of space on the second floor.
Upon the surrenders of such space, Cookies will occupy as lessee 78,287 square feet of space.
The total amount of rent lost per year as a result of the lease surrenders is approximately $1,400,000. The Company has been using brokers to market the space that has been surrendered by Cookies.
About J.W. Mays, Inc. (NASDAQ:MAYS)
J.W. Mays, Inc. is engaged in operating a range of commercial real estate properties. The Company’s properties include Brooklyn, New York-Fulton Street at Bond Street; Brooklyn, New York-Jowein building at Elm Place; Jamaica, New York-Jamaica Avenue at 169th Street; Fishkill, New York-Route 9 at Interstate Highway 84; Levittown, New York-Hempstead Turnpike; Massapequa, New York-Sunrise Highway; Circleville, Ohio-Tarlton Road, and Brooklyn, New York-Truck bays, passage facilities and tunnel-Schermerhorn Street, and Livingston Street. The Company holds the 10% lease of The Fulton Street at Bond Street’s property under five separate leases. As of July 31, 2016, the Jowein building at Elm Place was leased to approximately 11 tenants of which two were retail stores, one was a fast food restaurant, one was for warehouse and seven leases were for office space. The building Jamaica Avenue at 169th Street is Company owned and the land is leased from an affiliated company.