Johnson & Bell Shareholder, Joseph R. Marconi, and Real Estate Attorney, John D. Malarkey, completed a Tenant-In-Common transaction which ended several years of litigation between warring stakeholders. The final sale exceeded $85M in value. In this transaction, the two stakeholders originally disagreed on, among other issues, the timing and sale price of the partnership’s sole real estate asset resulting in several years of litigation. Johnson & Bell proposed a solution by which through a Tenant-in-Common (TIC) Agreement each party chose whether to sell or keep its own interest. The other party chose to sell immediately and that sale was consummated in late spring 2019 at a price that exceeded $60M. Johnson & Bell’s client retained its interest and entered into a new partnership agreement with the entity that had bought out our client’s previous partner. By retaining its interest in the property, Johnson & Bell’s client delayed closing for a one-year holding period. At the same time, the TIC agreement enabled Johnson & Bell’s client to qualify for and achieve considerable tax savings through a Sec. 1031 exchange; obtain a low interest loan on $10M for the holding period; and receive profits from the asset during the holding period. Pursuant to the new partnership agreement the entire asset was sold to a third party in September 2020 for more than $85M.
About Johnson & Bell's Commercial Transactions Group
From mergers and acquisitions to financing, real estate and business counseling, our Commercial Transactions attorneys are focused on helping clients achieve their business objectives. Corporations, privately held and family held companies, real estate partnerships and entrepreneurs rely on our skills, experience and business connections to make their business objectives a reality.