Pinnacle Shaken, Not Stirred
by April 24, 2006 12:00 am 84 views
The Pinnacle Group and General Growth Properties aren’t very happy with the folks running Sullivan’s Steakhouse.
The Pinnacle Promenade developers, otherwise known as Rogers Retail LLC, filed a lawsuit recently against Sullivan’s of Arkansas Inc. claiming breach of contract. The developers say in the lawsuit they are still ready to perform all terms of the lease agreement.
It seems Sullivan’s signed a land-lease agreement in February 2005 with the Pinnacle Promenade developers to construct a 10,000-SF restaurant building with a total of 16,000-SF including parking at the Promenade’s entrance that faces Interstate 540. The leasing map attached as an exhibit in the lawsuit indicates the steakhouse was going to be across from P.F. Chang’s with the main road in between the restaurants.
Sullivan’s sent a letter to Rogers Retail in December terminating its lease agreement because it had been advised “by our Arkansas liquor attorney that because the real estate is located in a ‘dry’ county, that fact in turn places a restriction on our signage, and we will not be able to have a martini glass as part of our sign.”
Included as an exhibit, Sullivan Steakhouse’s lease agreement with Pinnacle Promenade developers indicates they were going to pay annual rent of $100,000 for at least the first five years. Sullivan’s was also going to pay 2 percent of all gross sales in excess of $5 million to the landlord. After five years, that rent would increase to $110,000 annually with Sullivan’s paying 2 percent of all sales more than $5.5 million to the landlord.
John George, spokesman for The Pinnacle Group, said the developers had no comment about the lawsuit, which is still pending.
George did say the former Sullivan’s site is the only one of five restaurant pad sites that doesn’t have a confirmed tenant. He said the developers are actively working with more than a half dozen regional restaurant clients to fill the spot. George said most of the Pinnacle Promenade restaurants will be under construction in the next 45 days.