Danbury Real Estate Lawyers Assist With Commercial Property Purchases and Sales In Connecticut

Experienced attorneys work to protect your interests

Commercial property purchases and sales involve multiple complexities not present in residential transactions. The business use of a property is subject to zoning laws, building codes and environmental regulations. Commercial mortgage loans typically have higher interest rates, larger down payments and more stringent approval and compliance requirements. Still more complicated are purchases of properties with existing tenants. Whether you are the buyer or the seller, you need reliable counsel. At Collins Hannafin, P.C. in Danbury, we have decades of experience with commercial real estate transactions in Connecticut. We efficiently attend to our clients’ needs and concerns with the goal of achieving a profitable venture. 

Types of commercial property available in Connecticut

Our commercial real estate attorneys have experience with transactions involving different commercial sectors, including:

• Industrial uses — Such properties include manufacturing and assembly facilities, as well as storage warehouses.
• Office space — The quality of these premises varies widely, so issues of rehabilitation, maintenance and repurpose become crucial.
• Hospitality facilities — These include travelers lodges, entertainment venues, taverns and restaurants.
• Retail stores — Brick-and-mortar outlets ranging from individual boutiques to malls, strip malls and shopping centers, as well as supermarkets.
• Agricultural uses — Connecticut offers quality farmland close to large population centers.
• Mining uses — Principal products are stone, sand, and gravel for the construction industry.
• Renewable project properties — These facilities may be eligible for carbon credits and other benefits.

Because we have a broad base of knowledge in all local industries, we can advise you on particular concerns for the type of investment you are planning.

Due diligence in commercial real estate transactions

Due diligence is a comprehensive investigation and analysis undertaken prior to purchase or financing which identifies risks, liabilities or potential issues that could affect the property’s value, legal status or future profitability. The following are among the main components of due diligence in a commercial property finance or purchase:

• Title issues —A comprehensive title search can make certain that the title is clear of any encumbrances, liens or disputes. Obtain a current survey to make sure the property boundaries are accurately described and that any encroachments are identified.
• Zoning and permitting — You need to confirm that the property complies with local zoning and wetland regulations and that any planned use or improvements align with zoning and wetland restrictions. Ensure that all necessary permits and licenses for operating the property are in place or obtainable.
• Physical condition — A thorough inspection should be made of the property’s structural integrity, roofing, plumbing, electrical systems and HVAC. Assess if any repairs are needed and when they will be needed. Conduct an environmental assessment to identify contamination risks or required remediation. Also ensure that the building and any past improvements or renovations comply with applicable building codes and regulations. 
• Tenants — If you are assuming the role of a commercial landlord, you’ll want to know who your tenants are, their history on the property, their uses of the property and prospects for retaining them. Examine the current leases to understand terms, tenant obligations, rent escalations, expiration date and renewal options. Analyze tenants’ financial stability to assess whether they can reliably meet rent obligations. Reviewing current occupancy rates to understand tenant turnover and vacancy rates. 
• Financing — Assess available financing options, loan terms and interest rates. Lenders scrutinize various aspects of the property, the buyer’s business plan and the buyer’s creditworthiness before offering terms. 
• Potential liability for prior use — You should search for all legal proceedings or administrative actions concerning the property or its current or past owners, in order to make certain that you are not undertaking liability for environmental cleanups or other responsibilities created by the current or previous owners. 

Through due diligence, buyers can make informed decisions about whether the property is adequate for achieving their business goals. Sellers benefit by having all issues brought to the forefront so that they can be rectified promptly, reducing the risk of issues arising later that can derail the deal.

Contact an experienced Danbury commercial real estate attorney

Collins Hannafin, P.C. in Danbury represents buyers and sellers in commercial real estate transactions throughout Connecticut. Call us at 203-885-1938 or contact us online to schedule an appointment.