"Air rights" must actually be Transferable Development Rights (TDR's) that they can transfer in the same zone in NYC - that's how they can transfer 2/3 for $8M. But what doesn't make sense is why Regent 33rd doesn't keep the TDR's or sell them themselves - why does RICK have to sell them? RICK could just buy the building ... no? But Regent 33rd can't sell the TDR's separately because they must be concerned they won't qualify for capital gain treatment. So they need to sell RICK the whole shebang (building and TDR's); then RICK sells off the TDR'S. So if RICK can sell the remaining 1/3 TDR's for $4M, then they have $12M from the TDR's. But now Regent 33rd has to be thinking: If RICK sets up the TDR sale before buying and doesn't hold the TDR'S for some time after the sale, maybe we don't get capital gain on our sale - RICK is just acting as our agent. So RICK and Regent 33rd are trying to figure that out. But RICK still needs to finish the deal by August 9th. Since they probably won't, they are now saying contract is an "option."
RICK sort of portrays it like Regent 33rd is working with them .. which makes one think they are going to get the deal done ... but then they say they had to pay the $92,000 to extend it ... which implies that Regent 33rd isn't really on board ... so the odds of getting this done by August 9 aren't very high.
"The original contract for the subsidiary to purchase the property was extended after the owner agreed to finance the acquisition."
Or it could be an installment sale issue ... gain could be accelerated to Regent 33rd if RICK sells the air rights.
Whatever ... it looks like they are making the deal more complicated rather than simplifying it ... so I bet they don't get it done. Regent 33rd is going to want all kinds of tax opinions and indemnifications ... good luck on that!