6 Critical Diligence Items when Purchasing Multi-Family Commercial Real Estate
I recently represented a client in connection with the purchase of 925 apartment units located in East Tennessee. As part of the transaction, I updated my multi-family commercial real estate closing checklist. In reviewing my checklist, it reminded me of the below 6 items that buyers sometimes forget when purchasing multi-family commercial real estate properties. 1. Purchasers should always review police reports for the last 2 years related to the property (particularly if the property is in a low-income area). A purchaser may not necessarily want to purchase an asset that was the scene of a homicide or known for drug activity; 2. It’s important to identify any units that are not currently available for rental due to needed repairs and discount the purchase price appropriately. A well-drafted contract will include a formula to adjust the purchase price based on any “non-rentable” units as discovered during the due diligence period. 3. […]
Continue Reading