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You grumble when your rent goes up a hundred bucks—but what if it was increased by more than $5 million? The Real Deal reports that the Giorgio Armani Corporation is suing its landlord at 752-760 Madison Avenue for what they claim is "an illegal and collusive scheme" to force the luxury brand out of its flagship address ten years before its sublease expires.
The landlord in question, SL Green (the city's largest commercial landlord), acquired the land and the master lease after Armani signed a sublease extension that would keep them there through 2025, the site explains. Armani's lawsuit alleges that SL Green conducted an unfair appraisal process with entities under its control that estimated rent at the property should be $9 million per year—not the $3.5 million that Armani had previously agreed to pay for 2015. And according to TRD's explanation, that rent hike would take place tomorrow.
"This is a desperate attempt by Armani to protect its far below market rent at one of the most valuable retail locations in New York City, " an SL Green said in a statement to the site. "The fact is, Giorgio Armani extended their sublease with the prior lease owner with full knowledge that the underlying lease provided for a ground rent reset on April 1st."
The Giorgio Armani Corp. is currently seeking requested a temporary restraining order to prevent the rent hike from taking place while the two parties settle their differences in court.