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Conversion Conundrum 

As the housing market continues to suffer through its worst decline in recent history and demand for unsold units within recently developed condominium projects evaporates, the repositioning of condo projects into apartments may be a successful strategy for owners or

Click With Caution 

The statute of frauds, which dates back to 17th century England and continues in some form in every state, requires that contracts for the transfer of real estate interests and for the sale of goods above a certain dollar amount

Are Property Managers Debt Collectors? 

In December 1998, a case that has potential significance for residential property managers and others who routinely collect rent for property owners came before the U.S. Court of Appeals for the 2nd Circuit. Romea v. Heiberger & Associates involved a

Interpreting the Rules 

Since the U.S. Supreme Court's decision on Kelo v. City of New London, which permitted a local government to use the power of eminent domain to take private property for economic development, at least 47 states have revisited their eminent

Preserving Property 

Transfer of development rights programs allow property owners to buy and sell development rights without actually exchanging any land. The basic TDR concept is to compensate landowners who give up potential development rights in environmentally sensitive areas or preservation districts

Prevention Plan 

Asbestos litigation poses legitimate challenges and potential economic hardship for commercial real estate property owners. Overall, both prospective and current property owners need to be aware of and guard themselves against asbestos related risks associated with acquiring or owning a

Retirement Plan 

Today companies clean up and sell contaminated property more easily than in the past thanks to new technology and a clear understanding of contaminated property remediation. Many developers and local governments now are comfortable acquiring

What's it Worth? 

Eminent domain gives government the power to condemn or take away privately owned property for public purposes. In recent years this has come to include selling or transferring land to private entities for economic development purposes. Eminent domain power exists

What's the Use? 

Shopping center landlords heavily negotiate use provisions in their leases because they are critical to retail centers' tenant mixes. In a recent case, Congress Financial Corp. (Center) v. West Town Center LLC (In re Trak Auto), the Fourth Circuit Court

No Uncertain Terms 

What does it mean to vacate the premises in commercial leases? The denotation can be critical, particularly in cases where vacating the premises triggers a default. Last August, the District of Columbia Court of Appeals was called on to

Safety Net 

As all commercial real estate professionals know, effectively managing property is not without its challenges. Property owners and managers must be prepared for anything since no one can predict when unexpected events such as fires, floods, contamination, and other catastrophes

Reviewing the Rule 

In a series of cases culminating in two recent decisions, the Maryland Court of Appeals clarified the scope and application of the rule against perpetuities in a broad range of real estate transactions. While the rule’s enforceability varies from

Lease Logic 

Although commercial real estate investors often look at capitalization rates and replacement costs when considering an acquisition, the primary income stream &mdash and therefore the primary pricing mechanism &mdash is rent and

Landlords Should Know Bankruptcy Rights to Avoid Lost Rent 

Your tenant files for bankruptcy — should you give up hope of collecting any rent? No. Tenants are not allowed to occupy leased space without paying rent during bankruptcy proceedings. However, the bankruptcy filing's timing determines how much restitution landlords

Contamination Examination 

Real estate recessions create terrific investment opportunities &mdash the trick is figuring out which ones are right for you. With banks and loan servicers increasingly swamped by foreclosure properties, environmentally contaminated properties can offer particularly good deals. A fair amount

Default Decisions 

In the current market environment, commercial property landlords are experiencing an increase in the number of tenants that are party to U.S. Bankruptcy Code Chapter 7 and Chapter 11 proceedings. Landlords should have a basic understanding of their rights when

Developers Must Establish Public Purpose to Justify Eminent Domain 

Eminent domain is the well established right of government to condemn or take private property for public purposes. Most arguments relating to eminent domain deal with whether or not the owners of taken properties received just compensation. The general rule

Deal Diagnosis 

During the past decade, hospitals and healthcare providers have been on a building spree. Not only is the quantity of developments growing, but project size is on the rise. Hospitals and healthcare providers often build new because aging facilities cannot

Court's ADA Ruling Reminds Property Owners and Managers About Access Requirements 

Congress enacted the Americans with Disabilities Act as a comprehensive law designed to remedy discrimination — whether it is intentional or not — against those with disabilities in public and commercial facilities. The ADA requires continued efforts over time to

Deposit Disputes 

Part of the toll of the ongoing commercial real estate slump is the high frequency of terminated deals. Scarcity of financing, valuation disconnects, and general economic concern all contribute to the “kill rate.” Of course, any time a deal is

Courts Examine Brokers' Fiduciary Duties 

Once an owner hires a broker to sell or lease a property, a fiduciary relationship is established. The term fiduciary describes a position of trust The broker owes the seller loyalty and a duty to act in good faith during

Exclusive-Use Covenants Often Restrict Retail Leases 

Exclusives, or restrictions imposed upon the permitted activities of tenants for the benefit of an anchor or other significant tenant, are fairly common in retail leases. A recent case decided by the U.S. Court of Appeals for the District of

Bankruptcy Sales 

As this real estate cycle heads into its downturn, developers, investors, and lenders may face bankruptcy issues that they have not experienced in the past. Market slowdowns during the last 18 months may require these parties, as well as others,

Building a Case for Constructive Eviction 

During a typical Washington, D.C., summer, the state of the art air conditioning system in a recently completed class A office building broke down. With the windows closed, temperatures indoors routinely exceeded 90 degrees Fahrenheit. With the windows open, the

Broker Beware of Changes in Buyer Beware 

Anyone involved in the commercial real estate business even 20 years ago knows that a basic tenet of doing business historically has been caveat emptor—let the buyer beware. Simply stated, this doctrine puts the burden of evaluating the quality and