Adam Leitman Bailey, P.C. Secures Bulk Purchase of 22 Units in New Luxury Condominium Building for Client, Deeming Client “Successor Sponsor”
Adam Leitman Bailey, P.C. represented a real estate developer/investor in its bulk purchase of 22 units in a new luxury condo in Midtown Manhattan with a total offering of over $500 million. Our client’s bulk purchase of 22 units was in excess of $80 million. The process presented our attorneys with an intricate series of obstacles which they masterfully navigated and secured an ideal outcome for our client.
Adam Leitman Bailey, P.C. guided our client through tense negotiations of the complex purchase and sale agreement, while also managing to honor the terms of the client’s joint venture agreement with the sponsor entity. This joint venture agreement contained its own restrictions and conditions that required consideration in the client’s purchase of the 22 units.
Because of the number of units purchased, our client was deemed a “successor sponsor” under the New York Attorney General Regulations, meaning that our client would obtain sponsor obligations in the offering plan tied to the units purchased. This classification required that the attorneys at Adam Leitman Bailey, P.C. meticulously scour the Attorney General Regulations in order to properly advise our client of their rights and obligations once they fulfilled the purchase of these units.
Through an intricate series of negotiations that lasted weeks, Adam Leitman Bailey, P.C. worked around the clock to ensure protection for our client and obtained the best terms possible for the deal. Such protections included affirmative confirmations from the sponsor that our client would not be liable for any original construction issues and that all such liability would remain with the sponsor only. Foreseeing every potential obstacle our client could face is among our attorneys’ greatest strengths – especially at the negotiating table – this matter being no exception.
Adam Leitman Bailey, P.C. also represented our client at the closing of the 22-unit bulk purchase, which included a myriad of communications and collaboration with the title company, the sponsor’s attorney, and our client in the weeks leading up to the closing. The firm also represented the client in preparing and filing the required offering plan amendments to comply with the Attorney General Regulations/Martin Act for successor sponsors. The firm also prevented possible litigation by navigating client away from pitfalls, other obstacles and contract provisions that could have resulted in conflict.
Adam Leitman Bailey, P.C. will further represent our client in the resale of the 22 units they have purchased.
Rachel Sigmund McGinley, Chair of Adam Leitman Bailey, P.C.’s Cooperative & Condominium Representation Group, and Thomas Furst advocated for our client every step of the way along this complex process. Adam Leitman Bailey provided overall advice and counsel as well as litigation prevention representation.