Equity Residential has filed a Motion to Dismiss the Van Ness South Tenants Association’s challenge to Equity’s claim that the proposed transfer of ownership involving 3003 Van Ness is exempt from the Tenant Opportunity to Purchase Act (TOPA).
Equity argues that VNSTA lacks standing to challenge the transfer of ownership to Vivmark Residential, the new company resulting from the merger of Equity Residential and AvalonBay. It also argues on the merits that the transaction is not a “sale” under TOPA because Equity owns interests in numerous properties and 3003 Van Ness is not its “sole or principal asset.”
VNSTA disputes both arguments. Equity’s own Notice of Transfer states that it owns approximately 97.6% of Smith Property Holdings Van Ness LP that owns 3003 Van Ness, that former AvalonBay shareholders are expected to own the majority of the combined company after the merger, and that the transaction assigns approximately $111.5 million to the ownership interests associated with 3003 Van Ness.
VNSTA will file a response opposing Equity’s request for dismissal and asking that its TOPA challenge be heard. The deadline for the filing is September 25.
Attorney Richard W. Luchs of Greenstein DeLorme & Luchs, who for decades has handled TOPA cases and sought ways around TOPA for industry interests, will represent Equity Residential.
Read Equity Residential’s Motion to Dismiss.
