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Loeb & Loeb represented Netflix in connection with the signing of a 10-year lease in the King of Prussia Mall, which will host its first Netflix House, an immersive retail store.
The Netflix House, a 120,000 square foot retail store, is a brick-and-mortar concept that provides customers with an immersive experience of their favorite Netflix shows and movies. The space will provide themed merchandise and activities, as well as a restaurant, live theater and retail marketplace.
The property is subject to a complicated ownership and leasehold interest structure, with multiple layers of leasehold interests and a mortgage encumbering the property, plus a reciprocal easement agreement (REA) with the adjacent mall owner, Simon Properties.
The REA did not permit the use of the store for a multipurpose entertainment venue use so Loeb had to negotiate an amendment to the REA as well as a three part agreement between Netflix, the fee owner of the property and Simon Properties to permit Netflix’s use.
Local zoning laws did not allow the Premises to be used for a multipurpose entertainment venue, so Loeb had to retain, and coordinate with, local zoning counsel in order to secure a conditional use permit for the property to turn the former department store into a multipurpose entertainment venue.
Loeb negotiated all aspects of the 10-year lease and the lender subordination, nondisturbance and attornment agreement, and the master lessor subordination, nondisturbance, recognition and attornment agreement. The lease had to be conditioned on obtaining the conditional use permit, the amendment of the REA, the three party agreement and several subordination, nondisturbance and attornment agreements.
The Loeb team included Raymond A. Sanseverino, chair of the firm’s Real Estate department, and partner Talia Englander.
The Netflix House, a 120,000 square foot retail store, is a brick-and-mortar concept that provides customers with an immersive experience of their favorite Netflix shows and movies. The space will provide themed merchandise and activities, as well as a restaurant, live theater and retail marketplace.
The property is subject to a complicated ownership and leasehold interest structure, with multiple layers of leasehold interests and a mortgage encumbering the property, plus a reciprocal easement agreement (REA) with the adjacent mall owner, Simon Properties.
The REA did not permit the use of the store for a multipurpose entertainment venue use so Loeb had to negotiate an amendment to the REA as well as a three part agreement between Netflix, the fee owner of the property and Simon Properties to permit Netflix’s use.
Local zoning laws did not allow the Premises to be used for a multipurpose entertainment venue, so Loeb had to retain, and coordinate with, local zoning counsel in order to secure a conditional use permit for the property to turn the former department store into a multipurpose entertainment venue.
Loeb negotiated all aspects of the 10-year lease and the lender subordination, nondisturbance and attornment agreement, and the master lessor subordination, nondisturbance, recognition and attornment agreement. The lease had to be conditioned on obtaining the conditional use permit, the amendment of the REA, the three party agreement and several subordination, nondisturbance and attornment agreements.
The Loeb team included Raymond A. Sanseverino, chair of the firm’s Real Estate department, and partner Talia Englander.
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Chair, Real Estate -
Partner