Apex Building

This property was presented to us by Red Deer Commercial Realtor as a potential candidate for a purchase under Section 85 of the Canadian Tax Act.  We made an offer on the property to open discussions on Sec 85 but the Seller declined to do that structure of deal.  So we proceeded to do a normal cash and mortgage purchase.  In the middle of the Due Diligence time the Seller decided not to sell the property and attempted to collapse the transaction.  Fortunately, we were far enough along in our Due Diligence and Mortgage Financing approval that we were in a position to remove conditions and press for closing.  Interestingly, just prior to closing the Seller came back to us to see if the Sec 85 deal could be revived but we were too far along in the deal to revert to a renegotiation to provide for Sec 85 treatment. Although the property is an Industrial property it is located in an area very close to Commercial – Canadian Tire, Tim Hortons ect.