Commercial Real Estate

Time To Go: How New Jersey Commercial Landlords Can Deal With Holdover Tenants

By Anthony J. D’Artiglio

When a houseguest overstays their welcome, a friendly hint or gentle nudge is usually enough to get them packing. When a commercial tenant overstays their welcome after the conclusion of their lease term, both the consequences and steps to get them out are more consequential and more complicated.

Holdover tenants are a common problem for commercial and residential lessors alike. But as with many other aspects of the landlord-tenant relationship, the laws that govern the eviction of commercial and residential lessees in New Jersey have significant differences. While residential tenants receive a bit more leeway than their commercial counterparts, strict compliance with the law’s requirements is essential in both cases. Failure to follow the letter of the law can further delay the departure of a commercial holdover tenant and even expose the landlord to liability in certain circumstances. 

Holdover Tenancy Defined

Typically, when a commercial lease term expires, the tenancy becomes month-to-month if neither party provides notice to terminate or renew. However, if a tenant continues to occupy the premises without the landlord’s approval after the lease ends (and no new lease or extension has been agreed to), they are considered a holdover tenant.

Given that holdover tenancies, at least for relatively brief periods, are not uncommon, most commercial leases have provisions that specifically address this situation. A landlord evaluating its options with a holdover tenant should always look first at the lease terms before deciding on a course of action. These clauses typically provide for a steep rent increase, up to 150% or 200% of the base and additional rent while treating the tenancy as month-to-month. Most also allow for the landlord to initiate eviction proceedings notwithstanding the acceptance of any amounts paid by the tenant.

Even without such provisions, New Jersey law provides that holdover tenants are liable for double the rent provided for in the lease for however long they remain in possession of the premises after being served with notice, as discussed below.

First Steps Towards Getting a Holdover Tenant Out

One of the cardinal rules for a commercial landlord dealing with a holdover tenant is not to take matters into their own hands. Certainly, the landlord can engage in communications, discussions, and negotiations with the tenant regarding their vacation of the premises. But changing the locks or otherwise denying the lessee access to the premises, removing contents, and other forms of self-help can have disastrous consequences, exposing the landlord to significant liability. Instead, the landlord should start eviction proceedings and meticulously follow the specified rules and timelines set forth in the law.

As noted, two different sets of laws apply to residential and commercial tenancies in New Jersey. While the Anti-Eviction Act governs residential leases, the Summary Dispossess Act controls how commercial evictions proceed, including those involving holdover tenants.

The first step, and a required prerequisite to initiating an eviction of a holdover tenant, is to properly serve them with a written Notice to Quit and Demand for Possession. In most situations, where the tenant stays in the premises after the lease expires and the lease is treated as month-to-month, the notice must give the tenant 30 days to vacate the space. 

The notice and demand must be personally served either upon the tenant or such person in possession by giving them a copy or leaving it at their usual place of abode with a family member above the age of 14. If service cannot be accomplished that way, the notice can be given to anyone occupying the leased premises. If that doesn’t work, service can be made by posting the notice on the door of the premises.

Initiation of Eviction Proceedings

Once 30 days have passed after proper service of the notice and demand on the tenant, the landlord can initiate an eviction case. Presuming the landlord complied with all pre-filing requirements and properly initiated the proceedings under the Summary Dispossess Act, as the name implies, the eviction action is designed to move expeditiously, in no small part to deter landlords from exercising any self-help remedies.

The eviction begins with filing a summons and complaint in the county where the leased premises are located. Once the tenant is properly served with these documents by the Court, the court will set a trial date, typically within 10 to 30 days after service.

Entry of Judgment for Possession and Exercise of Remedies

If the tenant fails to appear at the trial date, the court will enter a default judgment in favor of the landlord. If the tenant appears in Court, the judge will likely direct the parties to meet with a mediator in an effort to reach a negotiated resolution. If those negotiations do not bear fruit, and presuming the tenant has no legitimate defense, the court will enter a judgment for possession in favor of the landlord. 

Following entry of judgment, the landlord can apply for a Warrant of Removal, which gives a sheriff or constable the authority to remove the tenant from the premises. Unlike in residential cases, the officer performs the eviction immediately upon service of the Warrant for Removal, forcibly removing the tenant if required and restoring possession to the landlord. The landlord is advised to have a locksmith on site at the time of the eviction to change all the locks barring the former tenant from further entry to the premises. If the lessee leaves property in the space after their removal, the property can be considered abandoned — either by the terms of the lease or by statute after providing the appropriate notice and the waiting period elapsing — permitting the lessor to remove or liquidate such property and apply the proceeds to any back rent or other unpaid amounts.

As noted, a commercial landlord wanting to retake possession from a holdover tenant should begin serving the notices required by New Jersey law as soon as possible after the conclusion of the lease term if no other arrangements, agreements, or extensions have been agreed upon with the tenant. 

Given the critical importance of strict compliance with notice and service requirements, New Jersey commercial property owners should always retain experienced counsel before initiating efforts to regain possession from a holdover tenant — indeed, if the landlord is a corporate entity it is required to retain counsel to appear on its behalf in landlord-tenant Court. 

If you have questions or need assistance regarding a holdover commercial tenant, please contact Anthony D’Artiglio at Ansell Grimm & Aaron.

Most Commercial Property-Owning Entities and HOAs Must Now Report Ownership Information to the Federal Government Under the Corporate Transparency Act

By Nicole D. Miller and Melanie J. Scroble

Most entities that own commercial property, as well as homeowner and condominium associations (“Community Associations”), are among the over 36 million other American businesses and organizations that must now provide the federal government with detailed information about their ownership and controlling interests. 

That is because the Corporate Transparency Act (CTA), which became effective on January 1, 2024, mandates that all “Reporting Companies” covered by the law disclose “Beneficial Ownership Information” (BOI) to the Financial Crimes Enforcement Network (FinCEN) division of the U.S. Treasury Department.

With an effective date of January 1, 2024, and with mandatory reporting deadlines approaching, commercial property owners and Community Associations need to understand what obligations, if any, they have under the CTA, whether they are a covered “Reporting Company,” and what information they need to provide FinCEN by the applicable deadline.

What Is the Corporate Transparency Act?

Signed into law in 2021, the CTA is part of an expansive federal government effort to crack down on illegal money laundering and “the use of shell and front companies by illicit actors who use them to obfuscate their identities and launder ill-gotten gains through the United States.” Unlike most federal regulatory schemes that primarily apply to larger companies, the CTA targets “smaller, more lightly regulated entities,” according to FinCEN. This focus on small entities is one reason FinCEN estimated that 90% of businesses and organizations in the U.S. are subject to the CTA’s disclosure requirements. 

Almost All Property Owning-Entities and HOAs Are Covered “Reporting Companies”

Subject to significant exceptions, as discussed below, a “Reporting Company” that must comply with the CTA is any corporation, limited liability company, or any other entity created by filing a document (e.g., Articles of Incorporation) with a secretary of state or equivalent agency. Entities like general partnerships or sole proprietorships that can be established without such filings are not subject to the CTA’s disclosure and reporting requirements.

Accordingly, individuals and general partnerships that own commercial property have no obligations under the act. But, unless they fall within one of the listed exceptions, all other property-owning entities will need to provide their BOI to FinCEN.

Most Community Associations are “Reporting Companies” under the act since they are usually organized by filing articles of incorporation with a secretary of state. Their tax-exempt status under Section 528 of the Internal Revenue Code does not spare Community Associations from their reporting obligations. While the CTA specifically exempts 501(c) non-profit organizations from reporting requirements, it does not exempt Section 528 organizations.

Entities Excluded From the CTA’s Reporting Requirements

Most entities excluded from the CTA’s reporting requirements are already subject to beneficial ownership reporting and disclosure obligations under other laws, so filing such disclosures under the CTA would be redundant. 

As stated in Section(a)(11)(B) of the CTA, these entities do not have to comply with the CTA’s BOI reporting requirements:

  • Banks.
  • Bank holding companies.
  • Credit unions.
  • Insurance companies.
  • Issuers of securities registered under Section 12 of the Securities Exchange Act of 1934 or that must file supplementary and periodic information under Section 15(d) of the 1934 Act.
  • Brokers, dealers, and any other entities registered with the SEC under the 1934 Act.
  • Registered investment advisors under the Investment Advisers Act of 1940.
  • Public accounting firms.
  • Companies employing more than 20 people full-time in the U.S. or that filed a federal income tax return in the prior year showing more than $5 million in gross sales or receipts and have an operating presence in the U.S.
  • Any entity that:
    • Has existed for over one year.
    • Has not sent or received funds over $1,000 or experienced an ownership change in the previous 12 months.
    • Is not actively engaged in business.
    • Is not owned by a foreign individual.

and

  • Does not otherwise hold any assets, including ownership interests, in any corporation, limited liability company, or other entity.

Disclosures Required About “Company Applicants” and “Beneficial Owners”

In addition to basic corporate information such as name, address, and tax ID number, Reporting Companies must provide FinCEN with BOI about two groups of individuals: “Company Applicants” and “Beneficial Owners.” 

As defined in the Final Rule, a “company applicant” is “the individual who directly files the document that first creates the domestic reporting company” and “the individual who is primarily responsible for directing or controlling such filing if more than one individual is involved in the filing of the document.” Effectively, the person who filed the documents required to create the entity will be considered the “Company Applicant,” whose BOI must be reported. 

Notably, the reporting of applicant information only applies to Reporting Companies created from and after January 1, 2024. Such new Reporting Companies need not provide FinCEN with updates regarding Company Applicant information after their initial disclosure.

“Beneficial Owner” = 25% Ownership OR “Substantial Control” Over Entity

All Reporting Companies must disclose information about their “Beneficial Owners.” As defined in the Final Rule, a “Beneficial Owner” is any person who, directly or indirectly, either:

  • Owns or controls at least 25% of a reporting company’s ownership interests; or
  • Exercises substantial control over a reporting company.

Importantly, ownership interests through intermediary entities qualify as ownership of a Reporting Company. As specified in the Final Rule, a person may be deemed a beneficial owner “through ownership or control of one or more intermediary entities, or ownership or control of the ownership interests of any such entities, that separately or collectively own or control ownership interests of the reporting company.”

“Substantial Control”

Determining whether a person exercises “substantial control” over an entity so they are considered a “Beneficial Owner” involves an analysis of the person’s actual authority and the actions they are empowered to take on behalf of an entity. Under the Final Rule, an individual has “Substantial Control” over an entity if they: 

  • Serve as a senior officer of the entity.
  • Have authority over the appointment or removal of any senior officer or a majority of the board of directors (or similar body) of the entity or
  • Direct, determine, or have substantial influence over important decisions made by the entity, such as:
    • Entry into and termination of contracts.
    • Acquisition, sale, or lease of the company’s principal assets.
    • Reorganization, dissolution, or merger.
    • Selection or termination of business lines or venture.
    • Amendment of any governance documents of the reporting company.

For Community Associations, this means that the voluntary members of the board of directors or board of trustees will be considered individuals with “substantial control” over the covered entity, i.e. the association.

Information That Must Be Reported to FinCEN

Non-exempt Reporting Companies must provide FinCEN with the following information regarding individuals who qualify as Company Applicants or Beneficial Owners:

  • Full legal name.
  • Date of birth.
  • Street addresses (identified as a current residential or business street address).
  • Non-expired state identification document or passport.

Reporting Deadlines

As noted, the CTA’s compliance deadlines largely depend on when the “Reporting Company” was formed. 

  • Entities Formed in Calendar Year 2024: Covered Reporting Companies created or registered on or after January 1, 2024, and before January 1, 2025, must submit their BOI report within 90 days after the date of the entity’s formation (i.e., the filing date of its Articles or Certificate).
  • Entities Formed Before January 1, 2024: Covered Reporting Companies formed before 2024 must report their BOI on or before January 1, 2025.
  • Entities Formed on or After January 1, 2025: Covered Reporting Companies formed after 2024 must file their BOI within 30 days after its date of formation.

Penalties for Non-Compliance 

Commercial property owners and Community Associations that fail to comply with the CTA’s reporting requirements face significant penalties. Any entity or person that “willfully provides, or attempts to provide, false or fraudulent information or willfully fails to report when required” faces civil penalties of $500 per day, criminal fines of up to $250,000, and a maximum of five years in federal prison.

Given the complexities in determining an entity’s beneficial ownership and non-compliance consequences, property-owning entities and Community Associations should consult with experienced counsel to ensure they satisfy any reporting obligations under the CTA. For further information and assistance with your entity’s CTA compliance, please contact one of the attorneys in Ansell Grimm & Aaron’s Commercial Real Estate or Community Association practice groups.

Recent Success Stories

Jennifer Krimko Secures Planning Board Approval of Client’s Plan for Monmouth Mall Redevelopment

On December 4, 2023, the Eatontown Planning Board granted preliminary and final site plan approval to Krimko’s client, Eatontown Monmouth Mall, LLC (Kushner Companies), paving the way for the redevelopment of the existing 1.5 million square foot Monmouth Mall in Eatontown. The proposed development, to be known as Monmouth Square, will consist of approximately one million square feet of commercial space along with 1,000 luxury apartments with a clubhouse and amenities for the residents, public open space, and related site improvements. Monmouth Square will be a pedestrian-friendly, true town center environment where people can live, dine, and shop all on one property.  

Jason Klein Closes Financing and Acquisition of Over 75 Global Quick Service Restaurant Stores

In December, Ansell Grimm & Aaron’s Jason Klein consummated two major asset transactions on behalf of two separate purchasers of over 75 quick-serve restaurants. The purchasers are franchisees of a global quick-service restaurant behemoth.

 In one transaction involving the acquisition of over 50 stores and three separate parcels of real estate, Klein spearheaded the negotiation of the purchase and sale agreements for both the assets and real property, the acquisition of the assets and the properties, and the loan transactions. In the other transaction, Klein’s efforts and direction resulted in his client’s successful acquisition of over 20 stores and the acquisition of one parcel of real property.

Asbury Park Zest Profiles Michael Benedetto in Fall Green Life NJ Edition

President and Managing Shareholder Michael V. Benedetto is featured in the Fall/Holiday 2023 Green Life NJ edition, published by Asbury Park Zest. A prominent lifestyle publication, Asbury Park Zest was created to highlight one of the most unique oceanfront cities in America and the businesses and people who call it home.

In this issue, Michael sat down with the magazine to discuss the sprawling, diverse real estate landscape along New Jersey’s coastline. He shares his insights on recent trends, the importance of building trust with his clients, and what makes New Jersey such a special place. Read the interview here.

In addition to his Firm leadership role, Michael serves as co-chair of the Commercial Real Estate and Corporate, Finance & Banking Departments. He has built a distinguished practice working with clients throughout the northeast and across the country, focusing on complex commercial real estate, corporate and commercial matters, business organizations, and banking matters.

Ansell.Law Welcomes New Attorney to Woodland Park

Ansell.Law is pleased to announce that Richard L’Altrelli has joined the firm’s Woodland Park office. His practice encompasses complex corporate, finance & banking, and commercial real estate matters.

With a background in law and finance, Richard handles sales, acquisitions, leases, and financings involving different real estate types. Following several years as general counsel for an international private equity firm in New York, he founded a firm and focused his practice on complex commercial real estate and corporate matters. 

A seasoned attorney, Richard’s clients appreciate his thoughtful counsel as he guides them through the transaction. Additionally, he counsels privately held companies on corporate governance, operating agreements, shareholder agreements, and employment agreements.

Licensed in both New York and New Jersey, Richard earned his law degree from Brooklyn Law School and his undergraduate degree, cum laude, from Seton Hall University. 

Ansell.Law Attorneys Secured Numerous Successful Client Outcomes in Q2 2023

Ansell.Law attorneys are laser-focused on achieving our clients’ goals. We listen to our clients and craft compelling legal strategies to preserve their business interests. A sampling of our recent successes follows. 

Commercial Real Estate

Jonathan Sherman, in collaboration with Melanie Scroble, successfully negotiated multiple commercial leases for cannabis retail in various cities, including Verona and East Orange, New Jersey. In a separate matter, Jonathan successfully completed a corporate restructure for his clients, enabling each LLC member to effectively execute a 1031 Exchange and achieve their desired financial goals.

Jonathan presented to over 100 realtors, providing valuable insights into using the 1031 Exchange process and Delaware Statutory Trust. Jonathan and Melanie Scroble partnered to deliver an informative Commercial Zoom series to more than 100 realtors, covering the acquisition, sale, and leasing of commercial real estate. 

Jonathan also shared his expertise at a Coldwell Banker roundtable. Engaging with over 50 residential and commercial brokers, the discussion revolved around the intricacies of buying multi-family properties in New Jersey. 

Litigation 

Joshua Bauchner, Layne Feldman, and Anthony Sango obtained dismissal of a counterclaim on behalf of our client, a well-known real estate development firm, in the Superior Court of New Jersey, Mercer County. The counterclaim alleged breach of contract, fraud, and negligent misrepresentation. AGA successfully argued that subsequent amendments to the parties’ original agreement defeated the defendants’ counterclaims as a matter of law, securing a dismissal with a prejudice precluding amendment.

Gabriel Blum and Seth Rosenstein secured summary judgment in favor of a firm client in a complex design and construction defect case. The firm convinced the Court that our client only provided job site materials and did not engage in construction work, contrary to the allegations in the Complaint. As New Jersey trial courts often disfavor granting summary judgment, this was a significant win for our client and saved them ongoing defense costs.

Anthony D’Artiglio and Joshua Bauchner successfully represented the purchaser of a substantial portion of an ice cream company’s assets with numerous locations throughout New York and New Jersey. The ice cream company entered into an assignment for the benefit of creditors proceeding where our client won the bid to purchase its IP and equipment while assuming multiple lease locations. We guided the purchaser through the sale’s confirmation, including addressing multiple issues related to liens, transfer of the IP, and landlord disputes.

Joshua Bauchner, Anthony D’Artiglio, and Brian Ashnault are representing a large property management company in a condemnation case in which a New York state agency is acquiring two permanent easements from a Bronx warehouse owned by the client. AGA is guiding its client through the pre-litigation stages of the condemnation process and seeks to secure a multi-million-dollar fair market value award in New York Supreme Court.

Joshua Bauchner, Layne Feldman, and Brian Ashnault obtained dismissal of a counterclaim filed against our client, a retail brokerage firm, in the Superior Court of New Jersey, Bergen County. The counterclaim sought a declaratory judgment regarding a brokerage listing agreement, deeming it unenforceable. AGA successfully argued that the counterclaim did not state sufficient facts and that the legal arguments failed as a matter of law, securing a dismissal with a prejudice precluding amendment.

Other litigation victories include:

  • Secured possession of a luxury home in Westchester County after years of litigation and compelled a highly favorable settlement, resulting in a windfall for clients and strong profit after selling the property to a third-party purchaser.
  • Obtained a highly favorable settlement for a contractor client after the homeowner sued, alleging breach of contract and consumer fraud in connection with constructing a pool deck. The firm’s efforts minimized the out-of-pocket costs for the contractor, with its insurance carrier paying most of the limited settlement sum.
  • Successfully prosecuted action on behalf of an automobile repair shop against a vehicle owner who refused to pay for charges after his insurance carrier failed to extend coverage. The settlement reached was significant and avoided the costs related to protracted litigation.
  • Initiated litigation against a multinational financial consultancy firm under the Fair Credit Reporting Act following the dissemination of inaccurate information concerning a client. The action was settled pre-litigation on favorable terms to the client.
  • Filed action on behalf of local businesses after a nationwide energy supplier substantially overbilled for provided electricity. After limited discovery, the firm’s efforts resulted in a substantial monetary payment to the local businesses.
  • Represented a local property developer in securing declaratory relief pertaining to a shopping center and certain master deed restrictions, permitting the construction and operation of a well-known gas station and convenience store at the subject property.

COMMERCIAL REAL ESTATE REVIEW – 2022

 

As the world began to recover from the coronavirus pandemic and various factors began to shift throughout the year as a result of an ever-changing economy, the attorneys in Ansell Grimm & Aaron’s Commercial Real Estate Department assisted the Firm’s clients in navigating the ups and downs of the real estate market. Led by co-chairs Michael V. Benedetto and David B. Zolotorofe, and assisted by attorneys Rick Brodsky, Jason S. Klein, Melanie J. Scroble, Carol J. Truss, Jonathan Sherman and David E. Lang, the department is pleased to share its numerous successes.

Over the course of the year, Shareholder Michael V. Benedetto, represented purchasers and sellers in acquisitions and sales throughout the East Coast, including, Michigan, Virginia, West Virginia, and South Carolina, with a specific emphasis on development sites throughout the State of New Jersey ranging from multifamily residential and residential development sites for 200+ lots, to warehouse distribution facilities and many asset classes in between.

In addition, Mr. Benedetto was lead counsel on many transactions involving existing properties, such as the acquisition of a 175,000 square foot multi-building office park in Camden County, as well as lead counsel to the Borrower on a bridge loan with mezzanine financing for a multifamily waterfront development project of more than 150 units still in the entitlement phase.  In addition to his transactional work on development projects, Mr. Benedetto acted as lead counsel to multiple landlords on numerous retail leases, ranging from in-line tenants to anchor tenants, as well as pad sites. 2022 was an active year in the restaurant market where Mr. Benedetto continued to represent numerous restaurateurs and developers in the leasing, acquisition, and expansion of restaurants, as well as other transactional matters, often consulting on the development of new restaurants in multiple states.

Shareholder David B. Zolotorofe, along with Partner Melanie J. Scroble closed a 27-million-dollar line of credit financing transaction with Investors Bank secured by mortgage loans on thirteen triple-net properties located throughout the Northeast, from a Perkins in Winter Park, Florida to a Shaw’s Supermarket in Concord, New Hampshire.

Melanie J. Scroble closed over 100 million dollars in real estate transactions including sale lease backs with Rite Aid and Sonic, sales and acquisitions of Target, CVS and Walgreens locations throughout the country including such locations as Salt Lake City, Utah and New Orleans, Louisiana, the acquisition and financing of development property for a Wawa in the State of Virginia, the purchase and financing of a Ponce Bank location New York City and the purchase and sale of various multi-family apartment buildings located in the State of New Jersey. In connection with her client’s acquisitions, she closed loans with such national lenders as ConnectOne Bank, Provident Bank, OceanFirst Bank, Southside Bank, Centennial Bank and First National Bank of Pennsylvania. Ms. Scroble also served as local counsel for a national equity group in connection with an 83-million-dollar financing transaction for a future development in North Jersey.

Roy Hibberd, Of Counsel to the firm, represented the principal shareholders in a $60 million stock transaction which closed in early October. The company at issue manufactured clinical diagnostic solutions for autoimmune and infectious disease testing. The buyer was a European based leading provider of clinical protein electrophoresis equipment and reagents for the screening and monitoring of various diseases. Hibberd’s work included the review, negotiation and redrafting of the stock and merger agreements together with related indemnification agreements and employment contracts for the principals who will continue to run the New Jersey based company for the purchaser.

In November, Roy Hibberd, together with Shareholder Michael Benedetto and Attorney David Lang, represented the buyers in a multi-company purchase transaction involving a number of company-owned and franchised New Jersey retail restaurant businesses. In addition to the assets involved at each restaurant location, several parcels of real estate were acquired underlying a couple of the restaurants.  The purchase also involved the franchise system which has been operating in New Jersey for over 50 years. In addition to reviewing all aspects of the franchise system and related trademarks and intellectual property, our AGA attorneys negotiated the asset and real property purchases and successfully closed the transaction.

Partner Carol J. Truss closed multi-million-dollar commercial mortgage loans with JP Morgan Chase and TD Bank for commercial property owners of mixed-use retail and warehouse properties. Ms. Truss also represented the seller and tenant in a sale and leaseback transaction in East Orange, for one of the properties that will be a part of the 500-million-dollar transit-oriented redevelopment project in East Orange known as the Crossings at Brick Church Station. There were multiple complications involved in this transaction, which was pending for over three years from the date of the initial contract to closing.

Another substantial transaction that Ms. Truss handled this year was the 35-million-dollar sale of an industrial property in South Plainfield, a transaction complicated by environmental issues and landlord/tenant matters. Ms. Truss also handled several substantial residential transactions, including IRS Section 1031 tax-free exchange transactions.

The Commercial Real Estate group regularly collaborates with the Corporate, Zoning and Land Use, and Controlled Substances & Regulatory Practice groups on the work they do for their clients. As a result of the successful work of the firm’s Controlled Substances & Regulatory Practice Group, 2022 has been an especially active year as the firm’s clients begin to receive their cannabis licensing and prepare to start opening for business. Partner Melanie J. Scroble, along with associates, Jon Sherman and David Lang, have been working with both landlords and tenants in securing leasing for the retail sale of cannabis throughout the State of New Jersey, including a potential new location in the City of Paterson.

 

About Ansell Grimm & Aaron, PC
Ansell Grimm & Aaron, PC was founded in 1929 and has a long history of delivering for clients who come to us to resolve legal matters that are often urgent, stressful, and of great importance. A general practice law firm, Ansell Grimm & Aaron is powered by experienced attorneys who understand that the best outcome is the one that serves the needs of each client.

The above is for informational purposes only and does not constitute legal advice. Transmission of the materials and information contained herein is not intended to create, and receipt thereof does not constitute the formation of, an attorney-client relationship. Attorney advertising.

 

 

 

September 2022 Newsletter

Klein Helping Clients with Property Sales and Acquisitions Across the State

Jason S. Klein, Esq. (a) assisted a client in the acquisition of a 200-plus unit multifamily complex located in Morris County, through a membership interest purchase, which also included assistance with financing from a large regional bank and multiple 1031 exchanges; (b) assisted a client in the disposition of retail center on the boardwalk in Cape May county; (c) assisted a client in the sale and simultaneous disposition of a property in located on Route 22 in Somerset County; and (d) represented a client in the simultaneous acquisition of two retail properties in Monmouth County, from two (2) separate owners and assisted with negotiating  and closing the acquisition financing in connection therewith with a large New Jersey-based bank.

 

Come See Us at the CAI Expo on October 20

The Community Association Practice Group will be exhibiting at the New Jersey Community Associations 2022 Annual Conference & Expo on October 20.
The 2022 CAI Conference & Expo will be held from 8:30 a.m. to 3 p.m. at The Event Center @ iPlay America located at 110 Schanck Road, Freehold, NJ.
CAI’s Annual Conference & Expo provides learning and networking opportunities for homeowners, managers, and business partners. Registration is free for all homeowners and community association managers and includes complimentary breakfast and lunch, educational programs, and multiple chances to win $1,000 during the show (must be present to win).
When you are at the expo, please visit us at Booth #823. You can also contact David J. Byrne, Esq. if you wish to set up a meeting with one of our attorneys while you are at the conference.

 

Brodsky Wins Approval for Projects Across Monmouth County

Zoning and Land Use Department co-chair Rick Brodsky, Esq. had a very productive summer winning approval for several projects before municipal boards throughout the county.

In June, the Shrewsbury Land Use Board voted unanimously to grant Use Variance and site plan approval, permitting the Applicant, Restore Hyper Wellness, to operate a health and wellness facility for customers seeking general wellness and anti-aging services and athletic recovery, including natural reduction of inflammation at 1079 Broad St. In July The Marlboro Township Zoning Board voted unanimously to grant variance and site plan approval permitting the Waitt Funeral Home to undertake significant renovations, upgrades and additions to its existing, long-standing building on Route 79.

Also in July, the Ocean Township Zoning Board, unanimously approved the application of Gold Coast Cadillac, granting site plan approval, with variances, permitting the renovation/expansion of the existing Cadillac car dealership on Route 35.

In August, the Long Branch Planning Board adopted the Resolution of Approval for its July unanimous decision to permit a four-lot Major subdivision application from Chelsea LLC.

 

Moin, Oliver, and Sherman Join Ansell Grimm & Aaron

Three new attorneys, Irina Moin, Esq., Jonathan Sherman, Esq., and Leigh Oliver, Esq., have joined the firm. Ms. Moin is licensed to practice in NY and NJ and will be joining both the Corporate Finance and Banking Department and Cannabis Law Department.

Ms. Oliver is a new associate in the Family Law practice and Mr. Sherman is working in the Commercial Real Estate Department.

 

Bauchner Receives New Jersey Law Journal Innovator of the Year Award, Appointed to NJSBA Foundation Committees

Joshua S. Bauchner, Esq. has been named one of the New Jersey Law Journal’s “Innovators of the Year” for 2022. Bauchner is one of just four attorneys in the state selected for the honor.

Bauchner also has been appointed by the New Jersey State Bar Foundation to the Publication Oversight Committee and the Editorial Advisory Board of the Respect Newsletter for 2022-23 by Foundation President Kathleen N. Fennelly, Esq.

The New Jersey State Bar Foundation is committed to the principle that public understanding of our legal system is essential to preserving the liberties that are fundamental to our democracy.

 

 

Shapiro and Barber Win Relief Against Prospective Buyer’s False Claim

Through, targeted discovery, Lawrence Shapiro, Esq. and Kelsey Barber, Esq. succeeded in having a contract buyer dismiss its complaint to enforce a contract of sale and discharge a Lis Pendens recorded against AGA’s client’s commercial property. Plaintiff Lebanon 123, LLC sought to compel Kullman Associates, LLC to sell real property known as the Kullman Corporate Campus in Lebanon, New Jersey for $13,500,000.

Kullman terminated the contract and refused to transfer title claiming that Plaintiff failed to meet its contractual obligations, including fully funding the deposit. Despite representations from the title company escrow agent that the deposit was received, AGA’s strategic discovery uncovered evidence that the deposit was never fully funded and, in fact, what had been funded was returned to Plaintiff, even before the suit was filed. AGA then moved for summary judgment and put Plaintiff on notice of their claims being frivolous which resulted in Plaintiff voluntarily dismissing its complaint and freeing the property for Kullman’s use and remarketing.

 

Bauchner to Moderate NJSBA Cannabis Law seminar

Joshua Bauchner, Esq. and Lisa Gora, Esq. of Epstein Becker & Green, PC will moderate a discussion on the latest developments in cannabis law at the New Jersey Law Center in New Brunswick, on October 26.

The topics covered in the seminar include:

  •  Psychedelics — The New Cannabis
  •  Cannabis in NJ Towns: Municipal and Local Applicant Perspectives
  •  Diversity, Equity, and Inclusion

There will also be a Q & A session The event runs from 2-5 p.m. and a companion webcast will be available online. Attendees can receive Continuing Legal Education credit for NJ, PA, and NY. Information on the credits provided is available on the event registration page.

A happy hour will follow at the Law Center, after which the NJSBA Cannabis Law Committee, which Bauchner and Gora co-chair, will convene.

 

Court Case Corrects Planning Board Denial

Litigation Department co-chair Lawrence Shapiro, Esq. succeeded in overturning the Planning Board of the Borough of Rumson’s denial of an application to subdivide property into two developable lots.

In overcoming the Board’s decision on behalf of the applicant, Michael McCarty, Shapiro demonstrated that the Board had erred in siding with objecting neighbors in refusing to grant minimal variances of lot circle, front yard setback, and lot width/frontage.

Notably, the Court reversed the Board’s decision resulting in the approval of the subdivision, with variances, on behalf of the applicant. In doing so, the Court found the Board’s reasoning to be a “sham” for its desire to maintain larger lot sizes in the zone.

 

Rosenstein Wins Long Court Battle to Protect Client

Ansell Grimm & Aaron, PC was retained by a trucking and rigging company after one of its employees sustained substantial injuries on a jobsite. Despite the project being covered by an Owner Controlled Insurance Program (OCIP), the contractor that retained our client failed to notify our client of the OCIP and did not enroll our client in the program. Making matters worse, our client’s insurance brokers failed to identify and advise the client about an exclusion in its commercial general liability policy that contained an “Absolute Employee and Worker Injury and Liability Exclusion endorsement,” leaving our client vulnerable to the claims asserted in the action. While our client was shielded against direct liability from the plaintiffs, the employee filed an action against the other entities involved in the project — some of whom subsequently filed a third-party action against our client.

Seth Rosenstein, Esq. of AGA’s litigation practice group handled this matter, aggressively defending the action and adding the client’s insurance brokers as fourth-party defendants on the basis that but for their negligence, the client would not have been left without insurance coverage for third-party action claims. After over four years of litigation, our efforts resulted in an ideal settlement whereby our client did not contribute any funds to the settlement and received a global release from all parties involved.

Ansell Grimm & Aaron welcomes Carol J. Truss

We are pleased to announce that Carol J. Truss has joined the firm.

“Carol is a great addition to the AGA Commercial Real Estate Department,” Ansell Grimm & Aaron PC Managing Partner Michael V. Benedetto said.   “She brings vast experience as a counselor, as well as tremendous respect from the Bench and Bar.”

Her practice is concentrated in the areas of real estate law, including commercial and residential title transfers and refinances, commercial leasing, and residential and commercial property management matters.  Ms. Truss also handles the purchase and sale of small businesses and the general representation of such businesses.

Ms. Truss is an active member of the Monmouth Bar Association (MBA), and has served in several leadership roles for the MBA, including President, Trustee, and Chair of the Real Estate and Land Development Committee.

ANSELL GRIMM & AARON NEWSLETTER NOVEMBER 2021

Jennifer Krimko Secures Variance for New Tesla Gallery and Service Facility

Jennifer Krimko, a Shareholder and Co-Chair of the Firm’s Land Use and Zoning Department, recently represented the property owners for the upcoming Tesla automobile gallery and factory-authorized service facility in Eatontown. The project required approval by the Eatontown Zoning Board of Adjustment because car sales are not permitted in the borough’s zoning rules. In addition to the selling and servicing of electric vehicles, the store will provide a free-standing charging station open to the public along the Route 35 corridor.

 

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