As gorgeous as real estate properties may look on Zillow, there are plenty of reasons that a real estate deal can fall through. First time homebuyers often hear from friends that you should never get emotionally attached to a property until you move in. If residential real estate sales are so complicated, think of how much more complicated it is when a buyer wants to buy a commercial property and make it serve a completely different purpose. “What if the buyer wants to turn the space from a bar into a church?” is not just a thought experiment meant to test the mettle of aspiring real estate agents. It is really happening right now in Fresno. Earlier this year, a judge ruled that the owners of the Tower Theatre can sell the building to a religious organization that plans to use it as a house of worship. If you want to sell a commercial real estate property to someone who intends to repurpose it, but your tenants object, contact a San Diego real estate dispute lawyer.
Worship in the Front, Party in the Back?
Many kinds of businesses had a rough time during the pandemic, but theaters arguably got it the worst. It is unsurprising, then, that the owners of the Tower Theatre in Fresno decided to sell the building, even though the theater had been a fixture of the community for decades. Lots of people will be sad to see the theater go, but no one was more upset by the news than the owners of the Sequoia Brewing Company, a bar and restaurant that rents a space in the theater’s building. In fact, the owners of Sequoia had been under the impression that they had a right of first refusal if the owners of the Tower Theatre were to attempt to sell the building.
Meanwhile, Tower Theatre found a prospective buyer in Adventure Church, but the Sequoia Brewing Company tried to block the sale. When the owners of the restaurant found out, they sued the Tower Theatre, accusing them of fraudulent concealment. They also allege that Adventure Church knew that Sequoia’s lease agreement with Tower included a right of first refusal but conspired with Tower to conceal the sale. Tower argued that Sequoia had not demonstrated that it would be able to buy the building if Tower had made that option available. In March 2021, the court ruled that the sale to Adventure Church can proceed. This may be better news for Sequoia than it seems, though. Representatives of Adventure Church indicated that, after the sale, they are open to continuing to rent the space to the Sequoia Brewing Company.
Contact Foldenauer Law Group About Disputes Over Real Estate Purchase and Sales Agreements
A California business dispute lawyer can help you persuade the court to allow you to go through with the sale of a piece of commercial real estate. Contact Foldenauer Law Group, APLC in San Diego, California to discuss your case.