Entering a New Market

CHALLENGE

Our client wanted to expand its real estate portfolio into the Seattle, Washington market. The first transaction, the acquisition of a trophy office complex, presented challenges as the project had been redeveloped by the seller on land that had operated as an industrial dry cleaning facility for more than 50 years. The second transaction, another trophy office complex acquisition, needed to transition from seller interview to closing in 60 days or less for tax reasons.

SOLUTION

In the first transaction, our client had concerns regarding potential future environmental liability exposure. We were able to obtain an Agreed Order from the state environmental agency, which provided significant protections in favor of our client, as well as a substantial hold back to fund any continued monitoring and, if needed, remediation. We were also able to obtain additional coverage through the use of environmental insurance. In the second transaction, we quickly assembled a sophisticated deal team to handle the negotiation of two purchase and sale agreements (the complex was comprised of two buildings owned by separate affiliated entities), perform diligence on both properties, and close both acquisitions in less than 60 days.

RESULTS

Leveraging Seyfarth's experience in highly complex and sophisticated commercial real estate transactions, our client was able to successfully enter the Seattle market and close two of the largest Seattle office purchases of 2019.