All Forum Posts by: Mike DeChristopher

@Aakash Shah that will depend on the structure of his ownership (individual, LLC, corp., etc.) and the laws specific to your state. It's certainly a question for your lawyer, as this is a somewhat complex equity transaction no matter how you slice it.

As others have said: call your attorney. Every situation is different, and the variables are immense. For example, It may be easier for you and your partner(s) to find lenders as individuals and pay into the eventual LLC as equity on the cap table versus filing a brand new LLC and attempting to find commercial credit. Maybe not. Again, it depends on your exact, specific, detailed situation; a good business attorney can help you with this process more than any of us can, especially given limited details.

FWIW, here in my area (Western Mass -- not terribly far from NY), it is unusual for the buyer to pay; I've always noted this as it seems strange. But alas, in every commercial transaction I've been a part of around here, it's been the seller. Your mileage may vary. It goes without saying to check into this first.

Even without the illness, recovering damages can be incredibly difficult and time consuming. Summary process, at least here, is expensive. Tear that lease right up. You'll find a new tenant.

Sometimes its one mile, other times its two or five. Sometimes its "within market area." It depends on your area and the intended purpose. I usually use 3 miles for my own purposes. Ymmv

You should have a phase 1 done as part of your due diligence. Find an experienced attorney, per Joel, and he can make sure the PSA allows for both time and contingency related to the phase 1. Then you'll at least know what you're dealing with. Expect to spend ~$4k on that alone.

I can't speak for Delaware specifically, but grade A stuff seems to move regularly just about everywhere (especially medical). An experienced commercial broker should be able to provide you with comps and help you weigh the options. There may be someone here on BP who can give you a good referral to a broker.  (EDIT: James did just that while I was writing this reply)

In my area, many privately-held medical buildings are being purchased by the area hospitals themselves. In the past five years, it seems like its been a semi-monthly occurrence that a building changes hands like this or a new one is built. This might only be a local condition as our average age is climbing.

@Scott Shelton Is he looking for you to sell lots he's already subdivided to hopefully add up to that figure, or is he trying to get you to sell the whole thing to a developer and walk away?

The way this normally works for large projects is a group of investors (maybe VC, private equity, or otherwise) approach a hotel management group who provides services such as: construction management, finding a franchise, operating, etc. Confusingly, the management group in mid-size projects is often comprised of the same guys funding and owning the resultant developments. But that's neither here nor there, just an observation. Anyway, my point is that if you're on board for a BIG project with venture cash/private money, you've found a decent REI opportunity. If you're just trying to buy and run a hotel, good luck. Industry figures arent particularly good for all but the largest operators.

@Benjamin Ulloa what they look for, first and foremost, is terrain and whether they gain anything from a new tower in that specific location. But that's strictly cell infrastructure companies! There's also companies that build "empty" towers and lease out tower space to a variety of other services (public safety, WISP, industry, etc.). There's only a few aggregators of these tower space listings and I've long held that this is the most underserved market in commercial RE.