Multidisciplinary team handles resubdivision, title, environmental issues prior to equity acquisition

Where We Started: DartPoints is a longtime firm client that owns and operates data centers across the U.S. Our team had previously handled local title work and other matters in connection with a 100% equity purchase of a Louisiana-based company, the financing of that transaction, and subsequent issues arising out of that acquisition for many years.

When a new sponsor, NOVA Infrastructure, approached DartPoints about acquiring a majority stake in the company, DartPoints directed them to Marshall Grodner and Aukse Joiner to work on some Louisiana real estate acquisition issues, including working out some complicated title issues.

Our Strategy – plus More: The acquiring sponsor wanted DartPoints to own a number of properties where it was currently leasing space, including a particular property in Baton Rouge, prior to the acquisition. Purchasing the property and obtaining clear title to this particular property was complicated in that it was one component of the Bon Carre Business Center, a former mall complex, with adjoining and neighboring properties owned by various private and publicly owned entities. The acquisition also required a complicated resubdivision of part of the building constituting the business center and adjoining parking. Our team had its work cut out for them, facing not only title issues but also environmental matters to be handled at the site and some other sites.

The Up-Shot: McGlinchey’s multi-disciplinary team of transactional, real estate, commercial finance, and environmental lawyers collaborated over a complex agreement with the seller (and adjacent property owner) to complete a $9.4 million resubdivision and purchase of the property in question. The team successfully worked as title company and as buyer’s attorney to complete the necessary real estate acquisition prior to the investor’s purchase of a controlling stake in DartPoints. With clear title to the property, the re-subdivided portion will continue to be operated by DartPoints as a data center. Additionally, because of our national environmental capabilities, DartPoints also engaged our environmental team to work on some minor issues regarding the Baton Rouge property and complicated environmental issues in connection with the acquisition of some similar property in South Carolina.

McGlinchey’s title insurance subsidiary, MACSTAM Title Company, LLC, served as title insurance and settlement agent for the transaction involving the Louisiana real estate.