Thread by @BobKnakal

🧵When Partners Don’t See Eye-to-Eye:

509 West 38th Street was a 125’ x 100’ development site upon which sat an auto body repair shop with a large billboard which provided additional income.

#TestimonialTuesday #retwit

2/8 The lease on the property and the billboard had expired and were being rented on a month-to-month basis. The site was purchased by a partnership of Meadow Partners & Iliad Realty.

3/8 Meadow was majority owner, Iliad had a first right of refusal to purchase the site if the site was going to be sold.

When the site was acquired, the intention was to build a residential rental property in the booming Hudson Yards neighborhood.

4/8 Within a short period of time after site acquisition, the value of the property had increased significantly and the partners began to consider what to do – sell, recapitalize, restructure or build. Meadow decided they wanted to sell and Iliad wanted to build the project.

5/8 Prior to retaining a broker, the partners negotiated among themselves to try to make a deal but couldn’t agree on an acceptable price. The partners decided to exclusively retain us to market the asset to establish a fair market value.

6/8 This dynamic is something that happens quite frequently. More often than not, the price that is achieved for the property is sufficiently high that the partner that originally wanted to purchase ends up selling their interest.

7/8 Our objective in this case was to get as many offers as possible, push the price to its highest possible level and let the chips fall where they may. We aggressively marketed the asset and produced 24 offers for the site, the highest of was matched by the minority partner.

8/8 That price was significantly higher than the initial buyout offer made by that partner but it was a fair price for all parties.

Here is what the majority partner had to say:

Closing Price: $49,800,000
12/20/2013

#TestimonialTuesday #retwit