Commercial real estate projects can be exciting growth opportunities for individuals, businesses and communities. While these can be very lucrative and beneficial, they can also be complex project with many working parts. This often means taking various steps to ensure the process goes as intended.
According to reports, Philadelphia is experiencing rapid commercial real estate development growth. Five acres of waterfront property in Philadelphia were recently purchased as the first acquisition for a New York company outside of the New York area. The area acquired is referred to as Philadelphia Piers at Penn’s Landing and was reportedly purchased for $21.4 million.
There are several tenants already currently in the property being acquired, including restaurants, a marina and a parking facility. The acquiring company noted that the purchase is reflective of the Philadelphia area’s economic growth and future potential. The company cited city government’s commitment to future projects. The acquiring company does not have immediate development plans for the property and plans to hold on to the property for the long term.
Philadelphia is in the midst of a development boom with major development projects ongoing throughout the city. Commercial real estate projects, while oftentimes exciting and good opportunities, can also be complex and involve a variety of parties, contracts, due diligence and legal complexities. Commercial real estate transactions can also involve complex negotiations, contracts for purchase and sale and a variety of other moving parts.
When contemplating a commercial real estate transaction, it is important for the parties to fully understand the commercial real estate process. Additionally, it is also helpful to be knowledgeable concerning contract formation considerations to help avoid contract disputes down the road. Trained guidance and an informed understanding throughout the commercial real estate process can help achieve a successful outcome for the planned project or acquisition.
Source: Costar.com, “Durst Organization Acquires Delaware River Waterfront Properties from Brandywine Realty Trust,” Randyl Drummer, March 27, 2017