Due Diligence Deems Building Rent Regulated
A sophisticated property owner hired Adam Leitman Bailey, P.C. to do the due diligence to purchase two multi-family buildings. Each building was only five units and hence marketed as having no rent-regulated tenancies in either building.
By the end of Adam Leitman Bailey, P.C.’s search of the Department of Buildings, the Division of Housing and Community Renewal, and the Supreme and housing courts, the firm located a Division of Housing and Community Renewal decision that declared both buildings to have enough combined parts to deem it one building and over six units and therefore rent regulated.
The firm also determined through searches that many of the residents were in a protected class for an owner occupancy case because they are over 62 years old or disabled.
The client asked for a dramatic price reduction and eventually did not go through with the deal. Adam Leitman Bailey, P.C. saved the client many millions of dollars as a result of its search.
Adam Leitman Bailey P.C.’s due diligence team represented the firm.