Question
Real Estate Law .Consider the following scenario: Your boss tells you that she just got a bunch of material about a multi-tenant retail center in
Real Estate Law.Consider the following scenario:
Your boss tells you that she just got a bunch of material about a multi-tenant retail center in Pittsburgh, PA, where a 1031 Exchange deal has just fallen through and the seller is very motivated and has a very strong need to close before midnight. The CEO says that even though you are not a lawyer she expects that you can figure which due diligence items are important. This way she can make an informed decision as to whether it is realistic to have (i) her financial person put aside other work to focus on this opportunity and (ii) incur outside counsel fees.
Rank these due diligence items in order from least important to most important:
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A copy of a survey dated 9 years ago with handwritten notes about a request from a utility company to excavate thru the rear of the property for a gas line and to build a pressure release station enclosure above the pipeline.
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A copy of a mortgage loan security agreement secured by the Property with a local bank that matures in July 2023.
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An Excel spreadsheet dated August 2021, showing a complete rent roll.
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Copies of leases for the three largest tenants on the Excel spreadsheet (out of 12 tenant spaces) in the property.
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A notice from the City of Pittsburgh that a garbage dumpster in a side yard is in violation of the zoning ordinance.
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A letter from leasing broker that a commission is past due.
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A 5-year-old Phase I environmental report advising of radon in the basement storage area.
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A copy of a complaint in a lawsuit filed a few months ago against a shoe store tenant alleging sexual harassment of female workers.
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A copy of a UCC filing by a company that appears to have installed restaurant fixtures in a coffee shop.
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A notice from the City of Pittsburgh that there will be partial street closures on the street in front of the Property for the period July 1st to August 31, 2022, in regard to the widening of the street for an increased traffic lane.
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