TKD Closes Co-Op Investor Unit Sale
TKD recently closed an unusual transaction on behalf of a co-op client consisting of 30 apartments owned by investors, occupied by rent-stabilized tenants, which were sold to another investor group. TKD's co-op/condo partner Steve Troup saw the potential for problems down the road and was able to obtain three highly unusual and very favorable conditions for our client: 1) personal guarantees by the individual principals of the purchaser entity; 2) a sizeable amount of money in escrow as security for the payment of maintenance; and 3) an agreement permitting the co-op corporation, in the event of a default by the purchaser, to notify the rent-stabilized tenants and demand that they pay their rent to the co-op as an offset against the purchaser's maintenance obligations.
Prior results do not guarantee a similar outcome
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