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While long-running lawsuit versus landlord (and developer) percolates, McDonald's at corner of Vanderbilt & Atlantic invests $60K on interior renovation.

While Yelp (link) reports the drive-through McDonald's at Vanderbilt Avenue and Atlantic Avenue as closed, and Google (link) no longer says "temporarily closed," the fast-food restaurant has reopened.


It was closed for an interior renovation, estimated to cost $60,000, to "relocate/install new front counter registers, kiosks, partitions, menu boards, and related finishes," according to Department of Buildings records.

There's a clear emphasis on self-service, as shown in the photo at right, and at bottom. 

Long-running lawsuit

The investment, though it's likely to be recouped in the short term, is a sign that the federal lawsuit McDonald's filed in 2019 against its landlord, Vanderbilt Atlantic Holdings, isn't close to being settled. 

As I wrote last October, the landlord's request for summary judgment--a full decision in their favor without a trial--on its claim that McDonald's failed to follow contractual rules for setting a new rent was denied.

McDonald's, by contrast, says Vanderbilt attempted to raise the rent significantly, in an effort to get McDonald's to leave and allow for the development of an 18-story building, permission for which has been granted via a rezoning.

Because of litigation, the rent has since been stalled at the extension figure.

What now?  

A trial awaits--unless Vanderbilt pays McDonald's to leave, allowing for construction. The site includes other parcels at the southeast corner of Vanderbilt and Atlantic avenues.

The most recent documents in the federal case regard motions to exclude various testimony and appraisals. 

No this is not a battle between "keep a McDonald's forever" and "build apartments at a crossroads." It's a battle over a contract.

Presumably when the case clarifies which side has the upper hand, settlement talks will ramp up.

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