Tenant-owned improvements. If any building, structure, fixture, or other improvement to the property is identified as being the property of a tenant who has the right or obligation to remove it as the expiration of his term, the Appraiser's estimate of the fair market value of the improvement shall be the greatest of (1) the amount which the improvement contributes to the fair market value of the property, (2) the in-place value of the improvement as part of the real property (the depreciated replacement cost of the improvement installed), or (3) the fair market value of the improvement for removal from the property at the purchaser's expense. The appraisal report shall state the basis for the valuation of the improvement and furnish the data and analysis on which the valuation was made.
Tenant-owned improvements. Borrower hereby represents and warrants to Lender that the improvements on the parcels of real property identified on Schedule 3.1.46 hereof are the only improvements in which Borrower has any right, title and interest as of the date hereof (excluding in any event the Tenant Owned Improvements) (the “Owned Improvements”; any improvements located at where the applicable Lease permits the applicable Tenant to remove or demolish such improvements, regardless of whether title to such improvement vests in Borrower at the end of the Lease term shall be referred to as a “Tenant Owned Improvement”). Borrower acknowledges that, in the event that Borrower acquires any right, title or interest (or any reversionary interest has reverted back to Borrower) in a Tenant Owned Improvement after the Closing Date, such Tenant Owned Improvement shall thereafter be considered an “Owned Improvement” for the purposes of any covenants set forth in the Loan Documents and any forward-looking representation or representation made by Borrower with respect to Improvements after the date that the Borrower acquires a right, title or interest in such Tenant Owned Improvement.
Tenant-owned improvements. The property acquired may include buildings, structures or other real property improvements that are owned by a tenant rather than the landowner. The tenant may have a lease that specifies that improvements be removed at termination of the lease. Tenant-owned improvements are more likely to be encountered on commercial use property. Examples include trade fixtures in a retail store or a panelized walk-in cooler for a restaurant. A tenant- owned improvement on a residential property might be an outbuilding (e.g., a storage shed) or a swimming pool. Property that would be considered real property if it is owned by the landowner is also considered real property for acquisition purposes. The agency must acquire interest in tenant- owned improvements that are located on property that is acquired for the project. A separate offer of the value of the improvements must be made to the tenant owner, but only if the landowner first disclaims any interest in the improvements. If the landowner refuses to disclaim interest, the tenant is advised of this fact. The acquisition payment to the landowner will include the value of the improvements. Disputed ownership will then be a matter to be resolved between the landowner and the tenant. The value of tenant-owned improvements will be determined as the greater of the amount that the improvement contributes to the fair market value of the whole property, or the value for removal, which is the same as salvage value.
Tenant-owned improvements. (1) Subject to Landlord’s rights to require their removal, approve their removal or become owner thereof, as set forth below, all Tenant Owned Improvements shall be the property of Tenant, but considered part of the Premises. Unless instructed to remove the Tenant Owned Improvements, upon expiration or sooner termination of this Lease, all of the Tenant Owned Improvements shall become the property of Landlord. During the Term of the Lease, including any extension or renewal thereof, Tenant shall not remove any Tenant Owned Improvements unless such removal is necessary for Tenant to make new alterations or physical additions, or install new improvements that do not diminish the value of the Premises, the Building or the Property as compared to the value of the Premises, the Building or the Property with the existing Tenant Owned Improvements, and in any event Tenant obtains the prior written approval of Landlord which approval shall not be unreasonably withheld, conditioned or delayed. Landlord may, as a condition to its approval of the Tenant Owned Improvements, or upon receipt of notice from Tenant regarding Notice-Only Alterations, or as to improvements made by Tenant in violation of the terms of this Lease, require that Tenant, at Tenant’s expense, remove any or all Tenant Owned Improvements and restore the Premises, by the expiration or sooner termination of this Lease, to their condition existing prior to the construction of any such Tenant Owned Improvements, reasonable wear and tear, and damage by condemnation excepted. All such removals and restoration shall be accomplished in a good and workmanlike manner so as not to cause any material damage to the Premises or Property whatsoever. If Tenant fails to so remove such Tenant Owned Improvements or Tenant’s trade fixtures or furniture, Landlord may keep and use them or remove any of them and cause them to be stored or sold in accordance with applicable law, at Tenant’s sole expense. Notwithstanding anything to the contrary provided in this Section, at the time Landlord grants its written consent to a tenant alteration to the Premises, Landlord shall specify whether, at the expiration or termination of the Lease, Tenant shall be required to remove all or any part of such improvement, provided that as to the initial improvements to be made as specified on the attached Exhibit B, Landlord shall only require the removal of the sink and counter.
