What is the exit strategy to co-ownership of a commercial real estate income property?
Each co-owner is a deeded owner on title allowing them to sell their interests to other buyers at fair market value. A co-owner who decides to sell must first notify the tenant-in-common sponsor who has a right of first refusal in purchasing the interest. The tenant-in-common sponsor or other co-owners may or may not choose to purchase the available interest in the property, after which, if they refuse, the selling co-owner is free to sell to a third party subject to the lender’s approval.
