Hillcrest Properties, LLC is suing the USPS, claiming it breached its lease by refusing to vacate the building or pay rent at market value. Monday marked one year since the lease agreement expired, but the building has not been vacated and postal services remain in operation.
“Their lease after a series of amendments expired in July of last year. Since then, there have been efforts by the private property owner to get the U.S. postal service to pay what the private property owner considers to be the fair market value of the rent at the location,” attorney and legal analyst, Dan Eaton said.
The market value rounds to about $750,000 per year, but the complaint filed said the USPS wants to pay considerably less for rent based on a lower valuation of the property.
While landlords usually initiate eviction proceedings when rent is not being paid, Eaton said this is a unique situation.
He said, generally, eviction is not available when the USPS is your tenant.
“What the private property owner is saying is that the US Postal Service is using its privileged position to not be subject to eviction because it’s so important that regular mail delivery continue that the U.S. Postal Service is not paying what the property is worth,” Eaton said.