Results
The original developer dropped the deal because he said the numbers would not work with the new rules to which the County subjected the property. In 2000, we found another developer that would purchase a portion of the property to put 310 apartment units on. We negotiated a deal with him and for cross access, signage and utility easements for the property being sold and the clients remaining property.
The deal was moving towards closing and we were 1 week away from the closing when the developer, who had paid $100,000 non-refundable earnest money, said his financing company would not close until he had his land disturbance permit. The County was dragging its feet and the closing would need to be delayed for 1 week. The seller, who had limited knowledge of real estate procedures in the U.S.A. initially said he would not extend because he gave his word on another deal in Israel and the developer should honor his word and close on the property in the time frame of the contract.
After getting nowhere, the developer finally said, “If he won’t extend, we will forfeit our $100,000 earnest money and when the land disturbance permit is issued we will come back to you to close.” Finally, the seller agreed to the extension and the deal closed two weeks later. In 2002, we then found a residential developer and negotiated a deal on a portion of the remaining property. The commercial 13 acres is still retained by the Israeli investment group and they will hold it until the time is right to sell.
