When developers and business owners are looking into buying a new property, it’s often a very exciting time. During property acquisition, however, these developers and business owners must take care to follow all applicable laws and protocols when buying or selling a property. The owners of one Pennsylvania shopping center have recently become familiar with the process.
The Noble Town Center, a 168,000-square-foot retail property located in Jenkintown, Pennsylvania, was acquired recently by DDR Corp. for $31.5 million. AEW Capital Management previously owned the property. The Noble Town Center was previously a John Wanamaker department store. Although the Noble Town Center stood vacant from 1996 to 1998, at the time of the sale to DDR Corp., it was 84 percent occupied by tenants such as PetSmart and Bed Bath & Beyond.
When looking to acquire a new commercial real estate property, investors must do their due diligence to ensure that inspections and all aspects of the financial transaction are done according to the letter of Pennsylvania law. Sometimes partnerships may even need to be formed in order to finance loans to acquire or remodel these properties. Oftentimes, rezoning, conditional use permits or variances are necessary to complete projects on these properties. Environmental impact issues frequently show up, and so do title defects, such as preexisting liens and easements.
As it is clearly an onerous task to ensure that all laws and regulations are followed, financing is secured, and that the property is free from defects and other pitfalls, reaching out to speak with a real estate attorney can be helpful for those developers and business owners seeking to either acquire or sell commercial property.
Source: Philadelphia Business Journal, “Noble Town Center in Jenkintown sells for $31.5M,” Natalie Kostelni, Oct. 1, 2014