The rest of the story of how clients’ trust in Prime Properties helped put together an $11M deal for a real estate investment property and a business. In the first part of this article, we showed an example of a complex and high-valued transaction involving a skilled nursing facility. When we first became involved in the deal, the client only wanted to sell the real estate. But, part of the benefit of working with Prime Properties is our ability to see possibilities that others do not.
In this case, there was interest in the business as well, not just the real estate. We saw an opportunity for a larger transaction that would be a win for all involved. Here we pick up the story.
Earning Trust Makes It Possible
Initially the business operators were not interested in selling the business, only the investment property was available. However, after meeting with their accountants and attorney, and a benefits analysis, we were able to guide the business owners to list their property with Prime Properties.
We listed the opportunity with the approval of all parties including the real property seller, his attorney, the business seller, and his attorney because of the relationship we had developed with each party and the trust that came with it. Still, neither transaction could be contingent on the other, so we were aware that the entire deal would still be complex.
Prime Properties Closes a Complex Real Estate Investment Property Sale
Since there was one buyer, with one loan, but two sellers (one for the real estate and one for the business), there were different closing goals for each. We drafted each of the Purchase and Sale Agreements to meet the specific needs of each respective seller, but without contingencies to close the other agreement.
The closing dates were over 30 days apart; there were several attorneys involved in each transaction: one for the buyer, one for the seller of the real estate, one for the seller of the business, and one for the lender. The state also had to approve the sale of the business and transfer of client trust accounts.
We were able to close two transactions worth over $11 million involving two different motivated sellers, one motivated buyer, and one loan by:
- good communication
- setting realistic expectations
- solving problems when they arose
- having a very experience and creative lender on my team
When you need a creative real estate investment professional, consider calling us and put our experience to work for you.
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