Business expansion often requires negotiations of contracts for commercial real estate whether it is under a lease for the use of the space or a purchase of the property itself. These negotiations often require some finesse in coming to terms that will be beneficial for both sides. This includes not only a determination of the current value of the property but a very educated prediction for the future needs of a business. And in some cases, the property is the business.
A real estate investment firm based in San Diego recently entered into a purchase agreement for an apartment complex in Tempe, Arizona. The property is a 21-building complex that features 114 units that will be available for rent in the area. The investment firm purchased the property from Equity Residential, which is an S&P company that is based out of Chicago, Illinois. The purchase price was $16.4 million, but that is not all that the company plans to spend.