Joint Venture Sale
Asset Class: Office Building
Status: Performing / JV interest
RP CRE Role: Advisor / Broker / Sale
Situation:
A foreign pension fund requested a feasibility study and buy vs. hold cash flow analysis of an office building redevelopment strategy. The joint venture was between two large institutional funds and ultimately, our client did not want to proceed with the redevelopment strategy and opted to sell their interest.
We developed a LEED feasibility study and analyzed a buy vs. hold strategy. We recommended selling the Joint Venture interest rather than pursuing an uncertain redevelopment strategy. We negotiated with the Joint Venture partner, evaluated outside interested parties, and sold our clients Joint Venture interest to the partner at 25% higher than book value (and avoided NYC transfer taxes).
