Jackson DeMarco Completes "Fractured Condo" Deal, a Harbinger of Things to Come
IRVINE, CA - Jackson DeMarco Tidus Peckenpaugh has completed a groundbreaking deal on behalf of a condominium converter to sell its unsold units in one complex to an investor who will operate them as rental apartments.
The 332 units in the sale had been previously offered for sale as condominiums but were then leased as apartments in response to the slowdown in the housing market. The units are scattered non-contiguously through the multi-structure, approximately 580-unit condominium complex in La Jolla, California. Terms of the sale and the identity of the parties were not disclosed.
The sale is believed to be one of the first and biggest in the nation of a so-called "fractured" condominium project - that is, one where units that were originally offered for sale are remarketed as rental units and then sold as an apartment project.
"This is harbinger for something that will be happening all over the country as the real estate market continues to stall," said Andrew Bernstein, the shareholder who managed the legal services for the deal.
To get the deal done, the parties had to work through a range of unique issues, from dealing with complex insurance and indemnity issues with the original project developer to dealing with the homeowners' association and unwinding the various agreements and bonds relating to the condominium sales effort that were required by the California Department of Real Estate. For the latter, Bernstein was able to draw on Jackson DeMarco's national expertise in residential condominium projects.
Jackson DeMarco Tidus Peckenpaugh, headquartered in Irvine with a second office in Westlake Village, is recognized as a preeminent California full service law firm, providing practical legal advice and representation in real estate, common interest subdivision, business and corporate law, employment law, litigation, land use and environmental regulation, construction law, immigration, and intellectual property. JDTP represents business and corporate clients in key California industries, including software and technology; real estate development; life sciences; oil and energy; manufacturing; transportation and distribution; finance; agriculture; fitness; and hospitality; as well as public employee associations and their members, and governmental entities. Learn more at www.jdtplaw.com.
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Contact:
Andrew Bernstein, 949-851-7446
