Lawsuit erupts over lease-option purchase price

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Lipton-U. City LLC leased a large self-service storage building from Shurgard Storage Centers Inc. A provision in the lease gave Lipton an option to acquire the property. However, the lease-option did not specify the option purchase price. Lipton thought the option price was based on the unannualized net operating income. But Shurgard thought the option purchase price was based on annualized net operating income, thus resulting in a much higher option price. Purchase Bob Bruss reports online. Because the landlord and tenant disagreed on the method of setting the option purchase price, Lipton sought to enforce the arbitration clause in the lease to set the price. But Shurgard argued the arbitration clause in the lease was only to resolve lease disputes other than setting the option purchase price. Lipton offered $185,805 to purchase the property. Shurgard argued the property is worth at least $2.9 million, according to its formula. The tenant sued the landlord to enforce the arbitration...