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Sponsored by Lorman Education
Product ID: 399212EAU
 
Credit & Course Provided by:

Outparcel Development Fundamentals

OnDemand Webinar (86 minutes)

Understand what needs to occur for a successful outparcel development.Adding outparcels or pads to a retail project can add significant monetary value to the development, particularly with respect to under-utilized parking areas and other land. End users often prefer acquiring an outparcel in an established retail center over developing a standalone site or purchasing or leasing land as part of a new development. (Problem) The ability, however, of an owner to ultimately sell or lease an outparcel, or an end user to use an outparcel successfully, usually depends on a variety of factors that must be understood and properly analyzed, such as the ability of the end user to obtain necessary governmental approval and permits for its intended use, the ability of the end-user or owner to obtain any necessary third-party approvals, the state of title to the outparcel, as well as the right to use other portions of the retail center or project in which the outparcel is located. (Solution) This topic will assist legal counsel and others involved with, or who want to be involved with outparcel development, to understand what needs to occur for a successful outparcel development. This content will focus on (i) how to conduct due diligence; (ii) permitting issues; seeking and obtaining third party approvals under project documents, anchor tenant leases, and easement agreements for the end user's business; and (iii) negotiating key provisions in purchase agreements and ground leases for outparcel development. Additionally, this topic will offer suggestions for developing retail and mixed used projects in a manner that will help facilitate the sale or ground leasing of outparcels without unnecessary or unexpected delays or costs.

Authors

Michael Di Geronimo, Miller Starr Regalia

Agenda

Overview

• Why Outparcel Development Is Currently Prevalent

• What Constitutes an Outparcel?

• Types of Outparcel Transactions

• Key Players for Outparcel Transactions

Tips for Enhancing the Value of Outparcels in New Development

• Make Each Outparcel a Legal Lot

• Provide for Flexibility

• Limit Third Party Approval Rights

• Use Restrictions to the Extent Reasonably Possible

• Limit the Scope of Control or Protection Area

• Make Future Development Not Overly Difficult

• Project Documents

• Require Each Parcel Within the Overall Center to Self-Park

Key Provisions in Outparcel Ground Leases and Purchase Agreements With End-Users

• Inspection Period/Feasibility Contingency

• Permit Period/Governmental Approvals Contingency

• Closing Conditions/Delivery Requirements

• Common Area Maintenance Responsibility

• Common Area Control

• Use Rights, Restrictions and Exclusives

• Responsibility for Hazardous Substances

• Signage

Due Diligence, Governmental Entitlements and Permitting for Outparcels

• Site Review

• Title Reports and Surveys

• Environmental and Soils Review

• Determining Compliance

• Governmental Entitlements and Permits

Third Party, Non-Governmental Restrictions and Approvals

• Approving Parties

• Types and Forms of Approvals Required

• Obtain All Required Approvals or Move Forward Without

• Do the Approving Parties Have to Be Reasonable?

• Obtaining Third Party Approvals Under Project Documents

• Supplemental Declarations (in Lieu of Amending Project Documents)

Additional Formats

Audio & Reference ManualMore Info