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."

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