Last week we touched on the complexities of a real estate sale, particularly those of a residential nature. While this is certainly important, it is just as crucial to realize that commercial property transactions can be just as complex, and many times more so. There are often many additional factors to consider when selling or buying retail space or office buildings, and the money at stake can be significantly more.
To see this, one may look to some recent transactions in the area. The Black Canyon Business Park, a nearly 220,000 square-foot business park in Phoenix, was recently sold to BKM Capital Partners for more than $13 million. Also, Vintage Farms sold nearly 9 acres worth of commercial property in Chandler to MDB Chandler LLC for more than $2 million. Many other commercial properties were recently sold in the Phoenix area, including The Colonnade Apartments. That 415-unit complex, which was more than 90 percent occupied, sold for $25.5 million.
Though reporting on these sales may make it seem like these deals happened over night, this is far from the case. Instead, multi-million dollar deals need to be scrutinized and every issue must be addressed. Failing to do so could result in delays, lost money, or a bad agreement that leaves an individual on the hook for more than he or she bargained for.
Thus, it may be a good idea for individuals or businesses that are considering purchasing or selling commercial property to speak with an experienced attorney. He or she might be able to help the seller or the buyer draft an agreement that protects their best interests. Then, hopefully, they will be able to reach a favorable conclusion to the matter that leaves them in a position they wanted.
Source: The Arizona Republic, “Colonnade Apartments in Phoenix sold for $25.5 million,” John McLean, Aug. 14, 2014
Source: The Arizona Republic, “Colonnade Apartments in Phoenix sold for $25.5 million,” John McLean, Aug. 14, 2014
