1730 Park Street, Suite 117,
Naperville, IL 60563

Call Us Today for an Initial Consultation

630-778-3818

Recent Blog Posts

What Happens When a Commercial Tenant Files for Bankruptcy?

 Posted on December 00,0000 in Commercial Real Estate

commercial tenant bankruptcy, Naperville IL real estate attorneyOne of the biggest headaches of any commercial landlord is finding high quality, reliable tenants. When one of your tenants files for bankruptcy, it can be frustrating and alarming. It is essential that you understand your rights and take action to minimize any losses.

Notice of Bankruptcy

The first the landlord usually hears about a tenant's bankruptcy is when he or she receives a form letter from a bankruptcy court. This piece of paper contains important information about the case. It will have the case number, the dates for any scheduled hearings, and instructions about something called the automatic stay.

When a person or business files for bankruptcy all collections activity against them is frozen. This is called the automatic stay. Even an attempt to collect past due rent is against the automatic stay.

Continue Reading ››

Illinois Commercial Litigation FAQs: Part 1

 Posted on December 00,0000 in Commercial Litigation

commercial litigation questions, Naperville real estate lawyersYou did not get into business hoping to be dragged into court. However, sometimes the only way to protect your business is through a lawsuit. Commercial litigation is intimidating and mysterious to many business owners. If someone is threatening to file a lawsuit against you, or if you believe you may need to file a lawsuit to protect your investment or business, you need to understand your rights and how the litigation process works. Below are several common questions businesses have about commercial litigation.

What Are Some Common Types of Commercial Disputes?

Commercial litigation covers almost every type of legal problem a business can run into. Some of the most common types of commercial disputes include:
  • Breach of contract
  • Problems with government agencies
  • Employment disputes
  • Fraud
  • Interference with a business relationship

Continue Reading ››

What You Need to Know About 1031 Property Exchanges

 Posted on December 00,0000 in Commercial Real Estate

1031 property exchanges, Naperville commercial real estate lawyerSection 1031 of the Internal Revenue Code is one of the most powerful tools in the real estate investor's arsenal when looking to delay paying taxes. This section allows you to defer the payment of capital gains taxes or greatly reduce your tax liability. Section 1031 creates the ability for the creation of a “like-kind exchange”. You can either have a forward or a reverse exchange. This tactic only works for investment property and not for your personal home in most situations.

Forward Exchanges

In a forward 1031 exchange, you sell (or relinquish) your investment property and then within 180 days you close on a second property and use the proceeds from the sale to purchase the second property. If executed properly, the exchange will result in you not having to pay the capital gains on the proceeds from the first sale until you later completely cash out.

Continue Reading ››

Structuring a Business Sale: Asset Sale Versus Stock Purchase Agreement

 Posted on December 00,0000 in Corporate Law

asset sale vs stock sale, Naperville business law lawyerWhen selling or buying a business, a number of factors must be considered, namely how the transaction will be structured. Essentially, there are two primary options: asset value and stock purchase agreement. Understanding the benefits and potential shortcomings of each can help to ensure the best outcome for both buyers and sellers.

Asset Sales

Commonly referred to as cash-free, debt-free transactions, asset business sales do not typically involve the transfer of cash or long-term debts. Instead, company assets and liabilities are sold. Examples include equipment, leaseholds, trade names, licenses. Networking capital, such as inventory, accounts receivable, and accrued expenses are also often included in asset sales.

Buyers may experience some tax benefits, including the ability to “step-up” the company's depreciable basis in its assets. This can reduce their tax responsibility and improve cash flow during the vital first years. It can also provide buyers with some protection from potential liabilities, like contract disputes, product warranty issues, employee lawsuits, or product liabilities. However, certain assets, such as intellectual property, permits, leases, and contracts, may be more difficult to transfer.

Continue Reading ››

Sale-Leaseback Transactions in Commercial Real Estate

 Posted on December 00,0000 in Commercial Real Estate

Sale-Leaseback Transaction, Illinois commercial real estate lawyerStill in the process of recovering from the economic recession, American businesses continue to face a tough credit market that can hinder their ability to expand or stay afloat. Many have turned to sale-leaseback transactions to remedy these issues; commercial real estate investors have been more than willing to oblige. However, there are some important considerations that must be made by both parties before entering into such an agreement.

What is a Sale-Leaseback Transaction and How Does it Work?

In essence, sale-leasebacks are arrangements in which a company sells their property to a third party investor and then leases it from the buyer so they can continue to use it for their business. The seller/lessee receives capital gain that can be used to reinvest in the business or pay off debts while the buyer receives ownership of the property with often better profits, stability, and legal options than they might have received through traditional leasing.

Continue Reading ››

Planned Unit Developments for Commercial and Residential Real Estate

 Posted on December 00,0000 in Commercial Real Estate

planned unit development, Naperville commercial real estate attorneyWhile any type of development can be complicated, the planned unit development (PUD) process often far exceeds the regulatory hurdles of other types of development. If an application is not completed properly or the regulatory process is not monitored, it can cost developers thousands of dollars, or potentially jeopardize the project altogether.

What Are Planned Unit Developments?

In Illinois, cities have the authority to allow for planned unit development (PUD). This is a special regulatory process to allow for the construction of large residential or commercial development projects. Each city has its own application process. Each city also has its own preferences and concerns that can affect how easily it is to get a project approved and built.

Unlike regular zoning laws that are fixed to parcels on a map, a PUD is known as a floating overlay district. It allows communities and developers to meet community needs and concerns such as population density and the revitalization of communities without worrying about the specific zoning districts. Instead, once the PUD is approved, the PUD zoning regulations are overlaid on top of existing zoning rules.

Continue Reading ››

Conditional Use Permits: What You Need to Know About Obtaining Permits in Residential and Commercial Real Estate Projects

 Posted on December 00,0000 in Zoning and Land Use

conditional use permit, Naperville IL zoning lawyerIllinois city zoning and land use laws and regulations are complicated. Navigating through the red tape of the permit process takes more than just a keen attention to the details of the language of the building code. It also takes an understanding of the personalities and processes involved in the planning process. If your commercial or residential real estate project needs a variance from zoning laws, you will need to secure a conditional or special use permit.

Condition Use Permit Process Overview

Each city has its own process for deciding on conditional use and special use permits. The legal process is usually described in the city's zoning and building code and ordinances. But, the laws only describe the formal process. There are some important informal steps that will help you make sure you get the permit you need for your project.

The essential steps for getting a conditional use permit include:

Continue Reading ››

Real Estate Development: Top Strategies Employed by Savvy Investors

 Posted on December 00,0000 in Residential Real Estate

real estate development, Naperville real estate lawyersEven though the U.S. is well on its way to recovering from the recession, there are still investors who fail in the real estate development market. In contrast, there are those who consistently make money, despite any changes or fluctuations. The following strategies, employed by the savviest of investors, are often key in giving the latter their edge over the former.

Study and Know Local Pricing

Studying and knowing your local market is an invaluable strategy in real estate development and investment. Not only do you learn which prices are fair (which can assist in finding the best prices), you are also able to better stay ahead of the trends. Take, for example, an area in which home sales are accelerating at a faster rate than its neighboring towns or subdivisions; this can tip you off to areas that are currently in high demand.

Know How to Spot a Catalyst

Continue Reading ››

Is Real Estate Crowdfunding Legal?

 Posted on December 00,0000 in Naperville Real Estate Attorney

real estate crowdfunding, naperville Illinois real estate lawyerIt is tough to do anything in the real estate industry and not stumble across some reference to real estate crowdfunding. The idea of investment crowdfunding, in general, and real estate crowdfunding, in particular, has been on the horizon since the passage of the Jumpstart Our Business Startups Act (JOBS Act) in 2012. The SEC voted to authorize several regulations on October 31, 2015, which will allow the full investment crowdfunding regulations to take effect 90 days after the vote.

Defining Crowdfunding

Investment crowdfunding is fundamentally different from consumer crowdfunding that is found on sites like Kickstarter. Investment crowdfunding gives investors a chance to pool their money and own an equity stake in a project. The investors are risking their money by investing it. They also stand to profit if the investment pays off.

Continue Reading ››

Complying With Securities Laws in Real Estate Private Placement Deals

 Posted on December 00,0000 in Commercial Real Estate

securities laws, Naperville real estate lawyerWhen working on a real estate deal, there are often many different regulatory and compliance issues to consider. Some of the most difficult to and complicated issues have to do with federal securities regulations.

Real Estate and Securities Law

The Securities and Exchange Commission (SEC) has sweeping authority to regulate and police securities throughout the United States. While many people do not think about real estate when they think about securities, actions like syndication of real estate deals, the formation of LLCs for real estate development, and seeking investor funds all fall under SEC regulations.  Securities law strictly regulates how investments in securities can be solicited and even who is allowed to invest in the first place.

Exceptions to the Rule

Many real estate investments seek to qualify for an exception to many of the most onerous restrictions and requirements that the SEC places on investments by making a private placement (also called a private offering of securities) under Regulation D. It allows investors to raise up to $5 million without having to go through the complex public offering process. One of the key requirements for making a successful private placement that complies with Regulation D is a private placement memorandum (PPM).

Continue Reading ››

Back to Top