Resolving the Negative Impact of Nearby Construction on an Office Building

We negotiated a favorable dispute resolution for a government agency concerning the impact of nearby construction on their downtown San Francisco office building.

The stability of the agency’s high-rise office building had been severely impacted as the direct result of nearby construction. We advised the client on its possible remedies and the strategies to achieve them, including litigation. We took into account the needs of the agency, applicable governmental policies, the realities of local building regulation in the jurisdiction and the agency’s own real estate strategies.

Ultimately, to resolve litigation, the developer agreed to grant the agency the right to require the developer to buy the property from the agency at any time during construction in the agency’s sole discretion. This required the creation of an option agreement, purchase and sale agreement and an option security escrow agreement. This provided security that the developer would honor its purchase obligation. The lease back to the agency provided a period of time to identify and construct new space if the circumstances did not require immediate vacation of the affected building.