Sale of Portfolio of Shopping Centers located in Puerto Rico to a Publicly Traded REIT
Tannenbaum Helpern's Real Estate group, with the support of our Corporate and Tax practices, represented a national shopping center owner in connection with the sale of a portfolio of 15 shopping centers located in Puerto Rico with a market valuation in excess of $4 million. The sale was made to a national public REIT on a tax-deferred basis using a "downreit" structure. Tannenbaum Helpern assisted the client in structuring the transaction, drafting and negotiating the purchase and sale agreement and, thereafter, closing the transaction through multiple closings. The transaction involved several complex and sophisticated matters, including creating newly issued partnership units in the downreit in order to provide flexibility for the client to maximize its realization of cash proceeds on a tax-deferred basis (while limiting exposure to the flucation in the stock price of the REIT), processing multiple loan assumptions of securitized mortgage loans and coordinating the transaction with the laws of the Commonwealth of Puerto Rico.