Did this transaction violate the business judgment rule?

Margolis was the vice president of Real Estate, Inc. and recommended that the directors of the corporation purchase a particular piece of property for the company’s new manufacturing plant. Four of the eight directors on the board are also members of a separate LLC that owned the property. This fact was not disclosed to the rest of the board.

The directors voted unanimously to purchase the property on the same day Margolis made the recommendation. The price that Real Estate, Inc. paid for the property was 30 percent above the fair market value at the time of the board’s vote.

Did this transaction violate the business judgment rule? What issues are raised here?