Opinion ID: 2444824
Heading Depth: 2
Heading Rank: 2

Heading: The transaction between TPC and UDRT

Text: Approximately four-and-a-half years later, on October 24, 2003, TPC entered into a contract with UDRT designed to transfer ownership of the Waterside Complex to UDRT while avoiding the Sale Act's requirement to offer a right of first refusal to its tenants. [7] To that end, the parties' Contribution Agreement provided that TPC would create the Townhouses Trust, modeled on the Towers Trust, and convey the title to the Townhouses to the Townhouses Trust. The sole beneficiary of the Townhouses Trust would be the Townhouses Holding Company, which would be modeled on the Towers Holding Company and be wholly owned by TPC. To finalize the transfer, the Contribution Agreement provided that TPC would sell 95% of its interest in both the Townhouses and Towers Holding Companies to UDRT in return for approximately $50 million at closing. At the same time, TPC and UDRT executed an Amended and Restated Limited Liability Company Agreement that included put and call provisions allowing either party to force the sale of the remaining 5% ownership interest in the holding companies to UDRT 366 days after closing. All of these transaction documents were executed contemporaneously in December 2003. The final settlement between TPC and UDRT computed a brokerage commission based on 100% of the purchase price, even though TPC ostensibly sold only 95% of its interest in the Towers and Townhouses Holding Companies to UDRT. On December 3, 2004, exactly 366 days after signing, TPC sent notice that it would exercise the put for the remaining TPC interest in the holding companies. The transfer did not take place, however, because WTRA commenced this action on December 2, 2004.