Chapter 14 - Alder Row loses the penthouse tenant
Alder Row suffered another problem.
The planned top-floor office tenant backed out.
Not because of me.
Market.
Remote work.
That created a $240,000 annual revenue gap.
MidState refused another owner distribution.
Daniel and Vivian needed:
Lease-up.
Or partial asset sale.
Samuel Ross proposed selling one retail pad separately.
Vivian refused.
“Shortsighted.”
Daniel supported sale.
Their partnership fractured openly.
Then board vote.
Daniel.
Ross.
Another outside investor.
For sale.
Vivian against.
Retail pad sold for:
$1.35 million.
Debt reduction after costs:
About $1.1 million.
Project became more stable.
Vivian called it:
“Cutting off a limb.”
MidState called:
Deleveraging.
No one lost everything.
Then Vivian’s $350,000 guaranty exposure reduced.
Daniel’s too.
Ironically, the decision she opposed protected her.
Then she demanded Daniel repay $300,000 side-agreement contribution immediately from his personal share of sale proceeds.
Could he?
Sale proceeds went lender first.
No distribution.
Their agreement said repayment from future distributable cash.
Not now.
She threatened suit.
Daniel’s lawyer said:
“Read your own agreement.”
She backed down.
Then she blamed me.
Of course.
At a family dinner, she said:
“If Claire had invested, none of this sale would have happened.”
Maybe.
But my cash would have been exposed instead.
The project was adapting to actual capital structure.
Then divorce mediation.
Daniel came without Vivian.
Important.
His settlement position:
$130,000 house-related credit.
Mine:
$105,000.
Gap:
$25,000.
Suddenly solvable.
Then other marital assets.
Joint brokerage:
$310,000.
Retirement:
Mine $420,000.
His $510,000.
Vehicles.
Furniture.
No spousal support; incomes comparable though Daniel’s business income fluctuated.
Northlight excluded except agreed active-appreciation/house reimbursement.
Bennett Urban ownership:
Daniel acquired most before marriage? Let's define 60% of his interest premarital, 40% during marriage through purchases/reinvestment.
Valuation needed.
Daniel owned 35% of sponsor company, but company holds multiple projects and debt.
His interest estimated:
$1.2–$1.6 million net after discounts.
Marital portion disputed.
Could become main remaining issue.
Great.
I had forgotten that because house was louder.
Then his own forensic expert argued marital component of Bennett Urban:
$520,000.
Mine:
$690,000.
Difference manageable.
The next trial would be about:
Numbers.
Not tea.
Not Vivian.
Good.
Until Vivian inserted herself again.
She offered to buy Daniel’s marital portion of Bennett Urban at a low valuation.
If he accepted before divorce, it could reduce apparent value.
Elise objected immediately.
Daniel withdrew transaction.
He told Vivian:
“Stop trying to help.”
May you like
That sentence reached me through discovery.
I smiled for the first time.
