The Delaware Court of Chancery has blocked the $300 million sale of a Washington, D.C., office building, ruling the property’s owner did not comply with an agreement to notify its previous owner of an intent to sell. If the owner wishes to consummate the transaction, he must start the process over by issuing a notice to the property’s original owner before contacting third-party buyers, the court said.
New York developer Richard Ruben constructed a 332,000-square-foot office building at 555 11th St. in Washington, D.C. The property, known as Lincoln Square, has office space, ground-floor retail and a three-story parking garage. In 2005, Ruben sold the property to Washington, D.C., real estate owner Ralph Dweck for $265 million. Under the sale agreement’s terms, Ruben retained a 5 percent equity interest in the building and also bargained for the right of first offer, or ROFO.
