The issue
Blankingship & Keith represented two co-owners of a strip mall in an eminent domain condemnation matter. The co-owners received a substantial sum from the government but had a limited window in which to reinvest those funds in another real estate venture without incurring certain taxes and fees. While our clients were united in their desire to take advantage of this opportunity, they were unable to see eye-to-eye on their plans for new investment properties. Our attorneys were tasked with finding a solution that satisfied both partners without sacrificing the time-sensitive advantage of tax-free reinvestment.
The strategy
After investigating several prospective real estate investments only to determine that the deals were unlikely to deliver the returns the co-owners desired, we ultimately identified an opportunity to purchase another suitable strip mall that would generate the right amount of revenue.
Our attorneys successfully negotiated the terms of the sale with the property owner. However, because the mall was fully occupied, we also had to negotiate separately with each of the tenants, most of which were major national chain stores represented by large legal teams. By leveraging the experience of our commercial real estate practice, we were able to quickly reach agreements with each of the parties involved.
Despite our attorneys’ success in negotiations, there was one issue left unresolved – the co-owners still had differences regarding the future of their investment. To satisfy our clients’ unique situation, Blankingship & Keith established separate LLCs for the partners, providing them with independent control over their respective stakes.
The impact
The sale closed with a smooth transition for both our clients and their new tenants, all of which kept their stores in the same location. We were able to help the partners avoid substantial taxes by finalizing the deal quickly, and the property continues to generate our clients’ desired returns.