FLB Law Successfully Represents MoCA CT in Acquisition of 19 Newtown Turnpike Property

FLB Law proudly represented the Museum of Contemporary Art (MoCA) CT, a local nonprofit organization, in the successful acquisition of the property it had been leasing at 19 Newtown Turnpike. The transaction, which closed in August 2022, included the purchase of the entire six-acre site, comprising a main 32,000-square-foot office/flex building and two single-family homes totaling 2,300 square feet.

For MoCA Westport, it was crucial that the acquisition be completed efficiently and cost-effectively, given its nonprofit status. However, the deal presented complex challenges that required strategic, innovative solutions to keep the transaction on track and ensure the long-term financial viability of the purchase.

Managing Tenant Litigation

One obstacle was ongoing litigation between a tenant occupying the building and the previous owner. Since the outcome of this litigation could have had significant post-closing implications for MoCA, FLB Law negotiated a robust indemnity provision and established an escrow account to cover any potential losses. There were two main issues, a claim for monetary damages and a claim that the tenant had the right to take occupancy of vacant space in teh building.  After taking title, we ultimately facilitated a global settlement among all parties, resulting in the previous landlord settling with the tenant to resolve monetary claims. Through strategic negotiation, FLB Law succeeded in having the tenant drop his tenancy claim against MoCA, providing clarity and stability for the museum’s future use of the property.

Ensuring Environmental Compliance

Another hurdle involved securing the lender’s approval regarding environmental concerns. Following an environmental assessment of the property, we negotiated an environmental escrow funded by the seller to cover all costs associated with regulatory compliance under the Connecticut Transfer Act. This included expenses for surveys, testing, legal fees, and more. We are now in the process of filing the final forms for compliance to bring this matter to a close.

Strategic Approach to Protecting Our Client’s Interests

These issues were addressed with a focus on safeguarding MoCA Westport’s long-term interests while ensuring the deal remained financially sound. Through strategic negotiation and innovative problem-solving, FLB Law helped MoCA Westport acquire its new home and position itself for continued growth and success in serving the community.