The Challenge
Unlike the client’s previous restaurant locations, this project involved purchasing commercial condominium units and acquiring an existing liquor license rather than entering into a traditional lease arrangement.
The transaction also required structuring multiple corporate entities, negotiating financing documents, preparing operating agreements involving investors, and coordinating the real estate acquisition with the future restaurant operations.
Because the space was delivered as raw commercial space, the client additionally needed legal guidance ensuring all acquisition and financing requirements were properly completed before beginning construction of the restaurant buildout.
The Solution
Nochumson P.C. prepared and negotiated the purchase and sale agreement governing acquisition of the condominium units and liquor license while simultaneously coordinating the financing transaction for the acquisition.
The firm formed separate corporate entities to hold title to the real estate and to own and operate the restaurant business itself.
Nochumson P.C. also prepared the operating agreements governing the ownership structure of the restaurant venture, including arrangements involving a silent investor, and drafted the lease between the affiliated ownership entities.
In addition, the firm reviewed the loan documentation prepared by the lender, verified compliance with the transaction requirements at closing, and coordinated title insurance protections connected to the acquisition.
Restaurant acquisitions involving real estate ownership often require separate entity formation, financing review, liquor license transfers, and operational agreements working together within a single transaction.
The Results
The acquisition and financing transaction successfully closed, allowing the client to move forward with development of the restaurant concept in Fishtown.
Following substantial improvements to the property, the client opened Kensington Quarters, which later became recognized as one of Philadelphia’s leading restaurants.
