I live in a condo complex that is located on some pretty valuable land. Because of this, many owners in the complex believe that someday we will be bought out by an investor. Based on where we live this is not a matter of if, it is a matter of when--so the thought of us receiving an offer from an investor is nothing new.
We recently got this new sick-rick property manager (about a month ago) straight "off the boat" from Chicago. He is a licensed real estate agent as well.
This property manager came to a board meeting last night and told us that he had a meeting yesterday morning with an investor regarding an offer on our property. I asked who the investor was and he said he "wasn't at liberty to say." He then went on about how this investor was "bigger than Kemper Freeman," and that the offer was at a "premium price." He told us that this investor wanted to give us 500-700k up front with the intent to buy our property in 18-24 months, and that the upfront funds could help us over that time with some issues that we're having (water intrusion, etc.). The property manager then spent the next 30 minutes basically trying to convince us that because our building is dated and our problems are insurmountable and that we should pretty much go with the offer. He even convinced the rest of the board members to approve a formal appraisal of the property. He stated details about the investors plans as well (apartments with retail).
So my question is-- is this how offers on commercial property are supposed to go down? If an investor contacted our property manager with interest in meeting to discuss an offer, shouldn't he have passed this information onto the association before meeting with them. In addition, shouldn't we have had the option of who met with them (ie: lawyer, real estate agent, etc.)-- and does he even have the right to negotiate with an investor on our behalf without or permission and then pick-and-choose what information he discloses to us?
It sounds to me like he is a real estate agent trying to get us to sell for the sake of commission. Or that the investors may have even offered him an incentive to convince us to sell.
How are offers on condominium complexes as a whole handled?
We have no idea what this manager disclosed to the investor either. For instance-- details about any water intrusion problems we may have, etc. But we do know (or at least I do) that he is an idiot, as he was spouting off wrong information about our zoning and the amount of votes it would take to sell. He thought we could build 25 floors, and that we only needed 51% of people to consent to sale. Its actually 5.5 floors, and we need 100%.