When you hear about a major real estate transaction, you probably don't put much thought into what went on behind the scenes to make the deal happen -- and that's okay, because the details of such a real estate purchase are not exactly interesting. But they are important for those looking to sell or purchase real estate, even if they lack excitement.
Many things come into play when a piece of real estate is on the market, especially in a place like New York City. And "being on the market" can mean a few things. It could be a home for sale; it could mean an open apartment or condo; it could mean a vacancy at a co-op; or it could mean a major office building is up for sale.
Depending on what the real estate transaction entails, the parties involved will want to be as informed as possible. Leasing issues; price negotiations; zoning guidelines; and financing the deal are all potential factors, in addition to myriad other minute details that need to be worked out. There's so much going on that a knowledgeable legal representative is imperative.
For example, consider the situation with Steinway Hall in Manhattan. A historical landmark of the city, Steinway Hall was put up for sale by its owners. The building and an adjacent lot were recently purchased by a development group for more than $46 million. The purchasing company, though, took out a $230 million loan to finance the purchase and help develop the area. They want to build a skyscraper that includes luxury condos and a hotel.
Consider the massive implications of such a deal: the laws that must be obeyed; the financing details; any refinancing clauses; construction deals; development costs. These things need more than one set of eyes on them.
Source: Commercial Property Executive, "Meridian Arranges $230M Loan for JDS's Purchase of NYC's Steinway Hall," Gail Kalinoski, July 17, 2013