Violation of CC&Rs in a "dead" complex?

Violation of CC&Rs in a "dead" complex?

Valencia, CA · Member since 2016 · 20 posts · 15 votes

Hello all,

I am trying to buy a building which is a stand alone parcel within a large strip mall. The strip mall is more than 80% vacant. The CC&Rs were filed 10 years ago by company A. Company A sold the strip mall to company B 3 years ago. My Parcel is within the same strip mall and governed by these same CCRs 

The CC&Rs prohibit my intended use in that stand alone parcel (Its currently a restaurant and I want to turn it into retail/service). The issue is that the CC&Rs literally prohibit ANY other use other than a burger and fry joint for the parcel I want to buy. 

We called the original company that filed the CC&Rs (company A) and they said they dont care anymore they sold all rights and rules to company B. Company B says they wont help us get an amendment because they also want to sell this entire dead complex and dont want to lift a finger when they dont have to. I stated that my business which is a 10 year old established business with over $2M a year in revenue would be a boost to the otherwise dead complex and the owner basically responded saying he doesnt care, he just wants to sell it and be done. 

So the question is, what can I and the current owner of the parcel do? Do we have any path to go? The current owner of the strip mall is not being reasonable in his reluctance as the current owner of my parcel will never be able to sell the parcel to another burger and fry business (2 have already failed there). 

I can provide more details but that is the gist of it. I am SEVERELY limited in my choices of where I can relocate and this would have worked (zoning and all are ALL fine, just not these damn CCRs). 

Help?

Abe

0Reply
25 views

4 Replies

Jump to latestLatest
  • Investor · Princeton, TX · Member since 2014 · 1k+ posts · 1k+ votes
    9y

    @Abe Osman   Either buy the entire complex or wait until a new buyer of the other parcel wants to work with you.

    Commercial investors do not play nice.  You should expect a lawsuit if you violate the CCRs.

    If I owned the other property and you did it, I would wait until you were basically finished with any construction and then file suit to block you from opening.

  • Valencia, CA · Member since 2016 · 20 posts · 15 votes
    9y

    You can say that again (they dont play nice). 

    I guess I just dont get the logic. He has nothing to lose a bit to gain yet he still says no. If it went to court, he would win with no question? It just doesnt make sense, the parcel is only allowed to be a burger place and so many have failed who will want to try again? Its a shame to let a good parcel wither away into nothing over someones mood...

  • Investor · Princeton, TX · Member since 2014 · 1k+ posts · 1k+ votes
    9y

    @Abe Osman   Did you offer money?  You are saying he could do something that would make the property be worth more money.  He probably wants money to do it.

    A good local lawyer might be worth the investment, if you want to see if you can get away with it.  If I had to guess I would say he could at least make you pay a lawyer to fight it and could delay any opening for months.

  • Valencia, CA · Member since 2016 · 20 posts · 15 votes
    9y

    I am not entirely sure how much money is a motivating factor in such a situation. Would $10k make a difference? Is $100k more likely? Its an awkward question, basically Im asking for a legal bribe. 

    My broker is with NAI Capital and he is going to consult his legal team to see what, if anything, can be done. 

    Its frustrating. I appreciate your replies. 

Join the conversationCreate a free account to reply, vote on answers and follow this thread.