Each commercial real estate transaction will be unique which is why it is important for a party to such a transaction to have property guidance throughout the process.
A prominent restaurateur, who owns upscale restaurants in Baton Rouge and elsewhere in Louisiana, recently purchased an older bank building for $1.45 million. The man plans to open another restaurant in the location. The 2,747-square-foot building has reportedly been vacant for several years following the relocation of a national bank after it closed the branch in that location. The restaurateur plans to enclose a roofed 2,500 square foot drive-through area to expand the restaurant. Although a date for the new restaurant to open has not been named, the representative for the buyer said that there would not be a significant delay.
Many times a commercial real estate transaction will progress smoothly and conclude without event. Other times, despite the best efforts of the parties, problems can arise. Commercial real estate transactions can vary in complexity and no two commercial real estate transactions will be exactly the same. Because of these factors, there can be many important considerations involved in a commercial real estate transaction.
Real estate disputes can arise between the many parties that may sometimes be involved in such a transaction, including owners, developers, sellers and purchasers which may sometimes overlap. Additionally, a commercial real estate project may also include construction, real estate land use and zoning law issues that can also arise. Whenever dealing with sales and purchases in commercial real estate, there will be important considerations and challenges from contract negotiations and drafting a purchase agreement to real estate closings.
Properly understanding and approaching the important considerations, challenges and possible problems of a transaction may help avoid a dispute or business litigation in the future. An experienced business and commercial real estate attorney can guide a party through the process and devote every effort to helping the party should a dispute arise.
Source: The Advocate, “Restaurateur buys former bank branch,” Timothy Boone, March 24, 2014