According to Muroff-Lewis president Andrew Muroff, the rentalbuilding was originally acquired back in the '80s with theintention of converting it to condos. "But the market in the late1980s was not conducive to condo conversions, so the sellerupgraded the apartments.

"As advisor to the seller, we recommended refinancing,highlighted the tax consequences of a sale versus an exchange andfinally produced a section 1031 tax deferred exchange," Muroffcontinues. "A profile of potential investors was specificallydesigned to overcome the seller's unpleasant prior experiences withthis type of transaction.

"Nevertheless, the reluctance of both the seller and thepurchaser proved difficult and time-consuming to overcome," Muroffsays. "And given a looming three-day delay at title closing, anapproved unique staged mezzanine loan was shelved, triggering thenecessity of a last-minute all-cash restructuring."

Continue Reading for Free

Register and gain access to:

  • Breaking commercial real estate news and analysis, on-site and via our newsletters and custom alerts
  • Educational webcasts, white papers, and ebooks from industry thought leaders
  • Critical coverage of the property casualty insurance and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.