Sandwhich Leases In (southern) California
Hello,
I was wondering if anyone here has done any sandwhich leases in California (I'm in San Diego) and if so, are there any special considerations, rules, laws, ways of doing things or things to be on the lookout for that would differ from doing these deals in the rest of the country?
Thanks,
Greg
To be honest with you the first sandwich leases that were done out here in Calif. to my knowledge were copies of similar structures utilized by Zekendorf (Wild Bill) as he bought the Empire State Building and a few others. He was after deposits on lease to increase his cash position and the deposit on each lease in decending order was transfered into his General Account and used from there. Downpayments on other buildings.
If you want to go back in time start in England about 1680's. Most land was of course owned by Crown and Church and those tightwads were not about to give up any ownerships, so the play was leasehold and once established it was a natural for the sandwich lease. Some properties in Westminister had as many as ten. Each in smaller time periods. As always there were a few daredevils who went upside down. If I remember my history correctly their reasoning was that by the time the time differences came into play they would be long gone.
Which bring us to a point of early history. One of the first residents in Ogelthorpes Colony which became Georgia, was a nice family that had played the Leasehold game and gone upside down as the lease expired on the lease ahead of theirs and was not renewed and the whole pile of leasehold estates came crumbling down and the Husband went to Debtors Prison and after some time left for the newworld. I suspect he turned into a Real Estate Investor.
My source material is from the library at the Inns of Court and the kind assistance of Foster and Son, Estate Agents of Westminister, London, Eng.
Backward looking Lucius
<IMG SRC="images/forum/smilies/icon_cool.gif"> <IMG SRC="images/forum/smilies/icon_cool.gif"> [ Edited by Lufos on Date 01/31/2004 ]