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develop a commercial office tower upon the land, Wolverine
entered into a financing arrangement with the Trustees of the
General Electric Pension Trust (G.E.) wherein G.E. purchased the
land for $850,000, leased the land back to Wolverine for 55 years
(the land lease), and lent Wolverine $7,650,000. Wolverine built
an 11-story office building on the land which was named the
Wolverine Tower Office Building (Wolverine Tower or the
building).
By 1979, Wolverine began experiencing financial troubles and
fell behind on the land lease and mortgage payments. On January
31, 1979, Wolverine entered into a contract for sale and
leaseback (the leaseback contract) with Arbor wherein Wolverine
sold to Arbor both its interest in the land lease and its
interest in Wolverine Tower and contemporaneously leased back
Wolverine Tower and the land from Arbor. The leaseback contract
called for a purchase price of $12.6 million to be paid with
interest over 5 years. After execution of the leaseback
contract, Arbor owned Wolverine Tower and, having assumed the
land lease, was the lessee of the land. Wolverine was the lessee
of the building and the sublessee of the land from Arbor.
Wolverine continued to operate the building and continued to be
the lessor under the various occupancy leases in effect.
By 1992, Arbor and Wolverine wanted to sell their respective
interests in Wolverine Tower and the land. On behalf of both
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