Adam Leitman Bailey, P.C., represented the seller of a commercial retail and residential use building in Manhattan. The transaction involved long negotiations and many drafts to get our client the precise structure they were looking for. An issue early on was how to handle the eviction of some residential tenants that were not paying for several months and that likely if not evicted prior to closing could cause some issues for the our client. We are able to structure a post-closing buy-out amount for each tenant so that if the eviction was completed post-closing the Seller would still be able to recoup past rents from the tenant under the buy-out terms. This provided added financial savings to the Seller.
In addition, the Buyer wanted to assign our clients current mortgage to save on the Buyer’s potential New York Mortgage Tax on the amount of their new loan. The savings in this situation was over 2.8 percent of the Outstanding Mortgage Balance and an amount greater than $75,000.
Again, Adam Leitman Bailey, P.C. were able to negotiate a sharing of such savings between Seller and Buyer to allow our client to get some financial benefits for cooperating with Buyer. The savings resulted in the Seller getting additional monies that they did not anticipate at the beginning of the transaction.
The ALBPC team was able to get the client the sales price negotiated and additional funds which others may have left at the table.