Challenge:

The Root’s Building, situated in a perfect setting in Summit, New Jersey, sat dark and vacant after the death of its owner, Perry Root, for almost five years.  Perry Root had no immediate family and his extended family was geographically and financially at odds with what to do with the 21,000 sq. ft. downtown office building.  Furthermore, the property did not meet ADA standards and the three-story building did not have a working elevator.

Action Taken:

A Senior Vice President of NAI James E. Hanson compiled and analyzed the Estate beneficiaries’ diverse financial objectives, and one by one, proposed solutions or acceptable alternatives such as a 1031 tax-free exchange.  This was made possible by finding a financially credible master tenant that would perform significant building improvements.  This plan allowed the sellers the time needed to find an acceptable replacement property without any building expenses since they were paid for by the master tenant.  The tenant also successfully negotiated a purchase option at such time as the property was 100% leased.

Results:

The beneficiaries of The Estate of Perry Root were able to ultimately find an acceptable replacement property while their estate expenses were 100% paid for by the master tenant.