Our commercial property transactional team wishes to congratulate our client, 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 leaseback 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.