Alexander v. Theatre Realty Corporation, 70 S.W.2d 380 (1934)

Citation: Alexander v. Theatre Realty Corporation, 70 S.W.2d 380 (1934)
Parent Document: Alexander v. Theatre Realty Corporation, 70 S.W.2d 380 (1934)
Jurisdiction: Kentucky (state)
Effective Date: 1934-03-23
Original Source: https://www.courtlistener.com/opinion/3441681/alexander-v-theatre-realty-corporation/ ↗

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* the first rent payment was made to the tenant by a. sub-tenant. * * * Probably by the end of 1929 the space in the building was pretty well filled, for Stewart, who had charge of the building, says the ‘peak’ of income from subleases was during 1930 when $51,136 was collected. He does, however, say that 'Something over $53,000 was collected in 1931 and that the rents ‘ stipulated to be paid by tenants on, their leases in existence in March, 1931, ’ was approximately $70,000, on an annual basis. But collections were becoming more difficult in 1931, so that-in March, 1932, the gross, collectible rentals, on an annual basis, were estimated at about $47,000. The actual operating costs [including taxes], were approximately $27,000, which would leave $20,000 with which to pay the ground rent of $44,000. This deficit of $24,000 increased, in 1932, to more than $30,000. In short, Jones and Chambers * * * were at this time confronted with the probability, not-only of the total loss of a third of that price [$250,-000] which they had put into improvements, but with a further operating loss of $30,000 or more each year. How long this would continue it was, of course, impossible to say, but they were so unfavorably impressed with the outlook, if the ground rent were not reduced, as to be willing, by giving away all of their interest, to write off as a total loss *680

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