All Forum Posts by: John Clark

Originally posted by @Heather Frusco: You obviously have a grudge against giving tenants options other than 'free'

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Not at all, Heather. I just think that if you are going to call non-paying residential tenants thieves -- and you are -- then you have to call non-paying commercial tenants thieves.

Stop whining.

"I seldom disagree with Jay, but I am confident that a mass majority of our C class tenants will make good on any rent they are short through this crisis. How sure? If I am wrong, I offer to take Jay to a steakhouse for dinner next time he is in San Diego. Not a wager, I am not expecting anything from Jay if I am correct. I have faith in our tenants. We screen well and we build expectations.

For missed rent payback: We were thinking one year payback time for up to 2 months missed, and 18 months if they are 3 months rent behind. So it could be a while before I know if I am correct.

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One year payback for two months is (forgetting time spent coming on stream for cash flow) is 6 months payback for 1 month. That is a 16. 667 percent rent increase. Yet we have a push for rent control that comes nowhere near allowing a such a huge percentage increase. If tenants had those reserves this problem wouldn't exist. We all know they don't have such reserves (neither does Cheesecake Factory, evidently, since it won't commit to paying April's rent at any time).

Class C neighborhoods are living paycheck to paycheck. The money will never be made up. Even if it could, there is a good possibility that rent control would forbid making the money up on a regular basis.

@Heather Frusco "I'm sorry sir but if you are not able to realize that using a paid service without intending to pay for it, is wrong... don't really know what you would like anyone to say... I've got a tip for you... it's wrong."
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My dear lady, I understand all too well, and what I understand is that you are trying to evade and make excuses for your corporate masters. Cheesecake Factory has already announced that it will not pay rent for April, 2020, due to its desire to save cash, whilst paying dividends, paying huge and unjustified salaries, whilst not saying that it will make up April rents at all, and while drawing down lines of credit without income.

I especially like the drawing on lines of credit bit, because it is an EXACT analogy to you telling tenants to use credit cards. Yet, yet!! . . . Cheesecake Factory STILL WON'T PAY APRIL RENT!!!!!!!!!!!!!!!!!!!!!

The horror! The Horror! And yet while you whine that human tenants not paying rent is "wrong" and label them as thieves, you refuse to criticize, or label as thieves, corporations doing the exact same thing.

Your whining hypocrisy is showing, Heather. Why won't you just admit that according to YOUR standards, Cheesecake Factory is a thief?

BTW -- you say there's no Cheesecake Factory near you, but you are from union City, NJ. There's a Cheesecake Factory at
Newport Centre Mall 30 Mall Drive West, UNION CITY, NEW JERSEY.

God I can't stand whiners.

"FYI, Cheesecake Factory said they were not paying April rent due to their cash position. They are basically hoarding their cash along with drawing from a LOC to make sure they have the funds to continue operations when the time is clear"

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So let's break this down, Greg. CF is deliberately not paying rent, borrowing money without income, AND has never said that it would pay the April rent at any time. It also spent money on dividends (frittering away money better used in reserves?) and paying exhorbitant (sp) salaries (2 million to the CEO).

By the way -- cheesecake factory is never an anchor tenant -- physical footprint is too small.

I just want Heather to admit that if non-paying tenant humans are thieves (her word was shoplifters), then non-paying tenant corporations are thieves, too. So far she's running away from her own words. Not the hallmark of a mature, intelligent, person.

"if you don't agree, then what would you call it? If you're continuing to occupy a unit with the knowing intention to never pay for your occupancy what would you call that? I hope that's straight forward enough John and can't wait to hear the reply. "

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Oh, but I do agree as to those who have a knowing intention "to NEVER pay." I just want to see if you extend the same label to established corporations pulling the same stunt. Now stop evading, and for the love of God, stop whining: Is Cheesecake Factory a den of thieves or not?

No confusion, Heather. Here's a cut and past from your original post:  "1 - Tenants should also have saved 'reserves' in place - so if they are already missing their rent payment come April just a few weeks into this, they are selectively deciding not to pay for their shelter in hopes of rent forgiveness - which is no different than shoplifting or any other use of a service with the knowing intention not to pay - no one to blame but one person"


You called them thieves -- shoplifting is theft. So quit evading and singing and dancing -- Do you agree that the Cheesecake Factory company is a den of thieves? Will you boycott it and encourage others to do so?

"John, don't really know what you're talking about..."

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Sure you do Heather, you said tenants who didn't pay rent are thieves in your original post. I pointed out that Cheesecake Factory has made a deliberate decision to not pay rent. So per you, it's a den of thieves. Are you going to boycott it? Are you going to label it a den of thieves? Stop getting the vapors and answer the questions.

"If you say so John. Silly us for giving tenants the option to make ends meet by allowing them to pay with a credit card and absorbing the processing fees. "

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And if they refuse, Heather, you call them thieves. Now stop singing and dancing and evading the question. Are you going to boycott Cheesecake Factory for being a den of thieves? If not, why not? Its CEO made a deliberate decision to not pay rent.

"you should beware what you wish for. Those are commercial leases and like most commercial leases... when the business makes more they pay more in rent in ADDITION to that the landlord in most commercial leases can take possession of all the businesses assets --"

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Wrong. Most commercial leases are for flat, fixed amounts and the only time you'll see a participation rent is when the business is new and the tenant needs to get established in his cash flow. If the landlord likes the tenant's business, he might agree to a participation rent. You and I both know that Cheesecake Factory and other established businesses aren't doing participation leases.

As for assets, landlords in commercial leases often provide that fixtures become landlord property at the conclusion of the lease. That is common. Other assets? rarely. Usually a judgment levy. Perchance you are thinking of possessory liens?

You called non-paying tenants thieves, @Heather Frusco , and if Cheesecake Factory DELIBERATELY isn't paying rent, then it is, per you, a den of thieves. Are you going to boycott it?

I agree that rent is due in full, and people "should" have reserves, but are you all going to boycott Cheesecake Factory? This just in today:  

Cheesecake Factory has reportedly decided to not pay rent for April at any of the chain’s locations because of business lost to the coronavirus pandemic.

“The severe decrease in restaurant traffic has severely decreased our cash flow and inflicted a tremendous financial blow to our business,” CEO David Overton wrote to landlords in a letter obtained by the Eater website.

I look forward to Heather Frusco denouncing Cheesecake Factory as being run by thieves.