The Challenge
Because the available commercial space was located within a condominium building, the proposed lease arrangement required review not only of the lease terms, but also of the governing condominium documents and zoning regulations affecting the unit.
The client also wanted flexibility to potentially purchase the commercial condominium unit in the future if the business successfully established itself in the location.
The transaction later expanded into a commercial real estate acquisition involving financing, entity formation, and operational lease structuring between affiliated business entities.
The Solution
Nochumson P.C. reviewed the condominium documents governing the property and confirmed that the gallery’s proposed business use complied with both the condominium restrictions and the Philadelphia Zoning Code.
The firm then negotiated a lease provision allowing the gallery owner to purchase the condominium unit at a predetermined price during the lease term.
After execution of the lease, Nochumson P.C. filed the zoning permit application required for occupancy of the commercial space, which was promptly approved.
Years later, when the gallery owner exercised the negotiated purchase option, the firm formed a dedicated ownership entity for the acquisition, assisted with financing negotiations, reviewed the loan documents, and represented the purchaser through closing.
Nochumson P.C. also prepared a lease agreement between the gallery business and the newly formed ownership entity following completion of the purchase.
Commercial leases involving condominium units may require review of both zoning regulations and condominium governance documents before a tenant can legally occupy and operate within the property.
The Results
The gallery successfully operated from the Old City location and later transitioned from tenant to property owner through the negotiated purchase option.
As a result, the gallery owner was able to build equity in the property occupied by the business rather than continuing to lease commercial space from a third-party landlord.
