SALE OF COMMERCIAL PROPERTY

Congratulations to our clients, a distribution services company, in the sale of their 24.84 acre complex in the Bay Area. What started out as a purchase transaction from a nationally recognized public entity quickly turned into a lease with an option to buy. In a fast moving and rising market, this unique and large complex transaction ultimately resulted in the putting together of a novel solution for our client's needs. A separate limited liability company was formed to bring in new parties interested in a commercial property investment. The deal all came together with a nearby company needing a larger space for their growth needs. They, through the limited liability company, picked up the purchase option, agreed to employ the principals of our client through long term consulting agreements, and guaranteed the contracts by letters of credit. Furthermore, the agreement provided for a lease back period to our client, the distribution services company. Everyone won in this transaction as the public entity sold off their large complex, which was not suitable for many purchasers, the eventual buyers found a tremendous property for their company's growth, as well as, a terrific commercial investment and our clients were able to flip their opportunity and still stay in the premises; thus giving them the time to find a more suitable location.