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Document Preview Real Estate Purchase and Leaseback Agreement |
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Title: |
Real Estate Purchase and Leaseback Agreement |
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Date: |
2004 |
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Preview shows 21KB of 107KB total |
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$53 |
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ID: |
#250473 |
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Store No. 3957
Crossville, Tennessee
REAL ESTATE PURCHASE AND LEASEBACK AGREEMENT
This Real Estate Purchase and Leaseback Agreement ("AGREEMENT") is made by
and between ECKERD CORPORATION, a Delaware corporation ("SELLER") and INLAND
REAL ESTATE ACQUISITIONS, INC., an Illinois corporation, or its designee or
nominee ("PURCHASER"). In consideration of the mutual covenants and agreements
contained in this Agreement, and for other good and valuable consideration, the
receipt and sufficiency of which is acknowledged, the parties agree as follows:
1. THE PROPERTY.
1.1 Seller agrees to sell and Purchaser agrees to purchase, upon and
subject to the terms and conditions set forth in this Agreement, certain
improved land located at the northeast corner of Main Street and U.S. 70, and
situated in the City of Crossville, County of Cumberland, State of Tennessee, as
legally described on the attached EXHIBIT "A" ("PROPERTY"). Contemporaneously
with the purchase and sale of the Property as contemplated in this Agreement,
Purchaser shall lease the Property to Seller pursuant to a Lease Agreement
("LEASE") in substantially the same form as that attached as EXHIBIT "B."
2. PURCHASE PRICE.
2.1 The purchase price for the Property is Two Million Six Hundred
Twenty Five Thousand and No/100 Dollars ($2,625,000.00) as adjusted pursuant to
this Agreement ("PURCHASE PRICE"). The Purchase Price shall be paid in federal
funds by Purchaser to the Title Insurer/Escrow Agent for the benefit of Seller
at Closing by wire transfer. The Purchase Price shall be increased to include
the closing costs paid by Seller pursuant to Section 10.1 of this Agreement.
2.2 The annual Rent under the Lease has been calculated by multiplying
the Purchase Price for the Property by a rate of 8.30% with a fifty-cent ($0.50)
per square foot increase for each successive option period.
3. EARNEST MONEY.
3.1 Within ten (10) days of the Effective Date of this Agreement,
Purchaser shall deposit the sum of Twenty Five Thousand and No/100 Dollars
($25,000.00) as earnest money ("EARNEST MONEY") with LandAmerica National
Commercial Services, 10 South LaSalle Street, Suite 2500, Chicago, Illinois
60603, Attention Thomas M. Gray, VP National Accounts ("TITLE INSURER/ESCROW
AGENT"), which sum shall be held for the benefit of Seller by Title
Insurer/Escrow Agent in escrow, subject to disbursement in accordance with the
terms and provisions of this Agreement. Provided that Purchaser furnishes Title
Insurer/Escrow Agent
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with a form W-9 containing Purchaser's Social Security Number or U.S. Taxpayer
Identification Number as the case may be, and any necessary escrow documents,
the Earnest Money shall be held by Title Insurer/Escrow Agent in an
interest-bearing money market savings account, and interest earned on the
Earnest Money shall be reported under Purchaser's Social Security Number or U.S.
Taxpayer Identification Number, as the case may be.
3.2 Except as otherwise provided in this Agreement, at Closing, the
Earnest Money and interest accrued thereon, if any, shall be returned to
Purchaser upon the Purchaser's delivery of the Purchase Price, plus or minus
prorations, to the Title Insurer/Escrow Agent by certified or cashier's check or
by wire transfer. Notwithstanding anything in this Agreement to the contrary,
the Earnest Money, and any accrued interest on it, shall be refunded to
Purchaser in the event Purchaser terminates this Agreement as provided in this
Agreement.
4. TITLE AND SURVEY MATTERS.
4.1 As soon as practicable after the Closing Date, Seller shall deliver
to Purchaser a standard owner's policy of title insurance issued by the Title
Insurer/Escrow Agent ("TITLE POLICY"). The Title Policy shall insure marketable
title to the Property in the amount of the Purchase Price, free and clear of all
liens, encumbrances and exceptions whatsoever, save and except only for those
easements, restrictions and other matters of record affecting title to the
Property which are Permitted Exceptions (as hereinafter defined).
4.2 Purchaser shall have until the end of the Due Diligence Period (as
hereinafter defined) in which to review the title commitment and as-built survey
to be delivered by Seller pursuant to Section 5.1, and to obtain any
modifications, endorsements or other revisions to either the title commitment or
the survey required by Purchaser, at Purchaser's cost. If Purchaser is unable to
obtain any modification, endorsement or other revision to the title commitment
or survey required by Purchaser, or if any items remain on the title commitment
or survey which are not acceptable to Purchaser ("UNPERMITTED EXCEPTIONS"), then
on or before the end of the Due Diligence Period, Purchaser shall so notify
Seller (an "OBJECTION NOTICE"). Seller has a period of ten (10) days after the
date of the Objection Notice in which Seller, using good faith efforts, shall
attempt to remove such Unpermitted Matters or remedy same in a manner
satisfactory to Purchaser in its sole and absolute discretion, or have the Title
Insurer/Escrow Agent commit to insure against loss or damage that may be
occasioned by such exceptions (in endorsements satisfactory to Purchaser). If
Seller does not cure any Unpermitted Exceptions to Purchaser's satisfaction
within such period, then Purchaser may either (a) terminate this Agreement by
giving written notice to Seller of such termination not later than five (5) days
following the end of the ten (10) day cure period, in which event the Earnest
Money, and all interest earned thereon, shall be returned to Purchaser and
neither party shall have any further obligations or liabilities hereunder or (b)
accept such Unpermitted Exceptions. Any item not specified in the Objection
Notice or subsequently accepted by Purchaser shall be a "PERMITTED EXCEPTION".
Seller shall be obligated to remove prior to Closing all mortgages and other
liens or encumbrances of a definite or ascertainable monetary amount, and if
Seller fails to do so, Purchaser may elect to terminate this Agreement. At the
Closing, and as a further condition of Purchaser's performance of its
obligations hereunder, Seller shall cause the Title Insurer/Escrow Agent to
deliver to Purchaser the Title Policy or a marked-up and signed commitment to
deliver same.
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5. DUE DILIGENCE INFORMATION.
5.1 Within ten (10) days of the Effective Date, or as soon as possible
thereafter (if such documentation is not completed or received by Seller within
such ten (10) day period), Seller shall provide Purchaser with the following
information: (a) the Lease, in substantially the same form as that attached as
EXHIBIT "B" proposed by Seller to be executed by the parties; (b) environmental
reports pertaining to the Property in Seller's possession (Seller will not be
required to obtain new environmental reports); (c) tax data for the Property, if
available; (d) the most recent boundary survey of the Property available; (e) an
irrevocable commitment for the Title Policy issued by the Title Insurer/Escrow
Agent and copies of all exception documents in Seller's possession; and (f) an
As-Built Survey of the Property (collectively, "DUE DILIGENCE INFORMATION").
6. DUE DILIGENCE PERIOD.
6.1 Purchaser shall have thirty (30) days from the Effective Date (the
"DUE DILIGENCE PERIOD") to review the Due Diligence Information and to conduct
all tests, inspections, feasibility and other studies and all other
investigations concerning the Property that Purchaser requires (including,
without limitation, environmental tests and assessments, inspection of the
physical condition of the Property, appraisals, surveys, and investigation of
zoning and other legal requirements) to determine whether the Property is
satisfactory to Purchaser, and to notify Seller in writing of any specific
objections to it. In the event Purchaser decides not to purchase the Property
based upon Purchaser's review of the Due Diligence Information or other
investigations, Purchaser shall so notify Seller in writing within the Due
Diligence Period. Thereafter, this Agreement shall be considered terminated,
null and void, and neither party shall have any further obligation one to the
other, and the Earnest Money, and any interest earned thereon, shall be returned
to Purchaser and neither party shall have any further obligations or liabilities
hereunder. If Purchaser does not so notify Seller within the Due Diligence
Period, the parties will proceed to Closing in the manner described in this
Agreement.
6.2 Purchaser's obligation to acquire the Property and consummate the
other transactions contemplated hereunder shall be conditioned on satisfaction
of the following requirements (the "CONSTRUCTION CONDITIONS").
(a) Seller having obtained and delivered to Purchaser a final,
unconditional certificate of occupancy from the City of Crossville, Tennessee
and any other applicable governmental authority with respect to all of the
Property;
(b) Seller having obtained and delivered to Purchaser a certificate
of completion, signed by an independent architect and independent engineer,
indicating that all improvements shown on the Plans and Specifications have been
completed and are in compliance with all applicable governmental rules,
ordinances, regulations and requirements; and,
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(c) Seller having taken possession of all of its leasehold premises
as described in the Lease, opened for business to the public, and, concurrent
with the Closing, commenced full payment of rents and other charges pursuant to
the Lease.
(d) Seller shall use best efforts to complete the Construction
Conditions on or before March 31, 2004. If the Construction Conditions have not
been completed on or before March 31, 2004, then Purchaser may terminate this
Agreement by giving written notice to Seller of such termination. Upon the
termination of the Agreement pursuant to this Section 6.2, the Earnest Money,
and all interest earned thereon, shall be returned to Purchaser and neither
party shall have any further obligations or liabilities hereunder.
7. INTENTIONALLY DELETED.
8. DELIVERIES AT CLOSING.
8.1 At the time of Closing, Seller shall deliver the following original
documents:
8.1.1 A special warranty deed conveying good and marketable title
to the Property to Purchaser free and clear of all liens, encumbrances and
exceptions whatsoever, save and except only for the Permitted Exceptions;
8.1.2 A quitclaim bill of sale conveying all of Seller's right,
title and interest in any personal property used in the operation of the
Property to Purchaser free and clear of all liens, security interests and
adverse claims;
8.1.3 An appropriate "Seller's Affidavit" so as to enable Title
Insurer/Escrow Agent to delete the "standard" exceptions for such matters from
the Title Policy and otherwise insure any "gap" period occurring between the
closing and the recordation of the closing documents;
8.1.4 An appropriate FIRPTA Affidavit or Certificate by Seller,
evidencing that Seller is not a foreign person or entity under Section
1445(f)(3) of the Internal Revenue Code, as amended;
8.1.5 A duly executed counterpart of the closing statement;
8.1.6 An executed Lease in substantially the same form as the
attached EXHIBIT "B";
8.1.7 A duly executed counterpart of a Memorandum of Lease, in
recordable form, acceptable to Purchaser in form and in substance;
8.1.8 A certificate executed by Seller confirming that the
representations and warranties made by Seller in this Agreement remain true and
correct as of the Closing Date;
8.1.9 A certificate of insurance, evidencing the insurance
coverages required to be provided by Seller pursuant to the Lease, acceptable to
Purchaser in form and substance;
8.1.10 An executed tenant estoppel certificate and executed
subordination,
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nondisturbance and attornment agreement in the forms required by the Lease or as
otherwise may be acceptable to the parties;
8.1.11 An estoppel certificate, in form and substance acceptable to
Purchaser, stating that there are no defaults under any reciprocal easement
agreements, operating agreements, declarations, or similar documents affecting
the Property ("REA DOCUMENTS"), executed by all parties ("REA PARTIES") to any
such REA Documents; and
8.1.12 Such other closing documents as are reasonably necessary and
proper in order to consummate the transaction contemplated by this Agreement
including, without limitation, lien waivers showing that all bills and invoices
for all work on the Property or otherwise have been paid, and that lien waivers
from all mechanics and materialmen have been obtained.
8.2 At the time of Closing, Purchaser shall deliver the following
original documents;
8.2.1 An executed Lease in substantially the same form as the
attached EXHIBIT "B";
8.2.2 A duly executed counterpart of the closing statement;
8.2.3 A duly executed counterpart of a Memorandum of Lease, in
recordable form, acceptable to Seller in form and substance; and
8.2.4 Such other closing documents as are reasonably necessary and
proper in order to consummate the transaction expressed in this Agreement.
9. CLOSING.
9.1 The Purchase Price and the executed closing documents described
above shall be delivered, and the purchase and sale transaction expressed in
this Agreement shall otherwise be consummated ("CLOSING") on a date which is
mutually agreeable to Seller and Purchaser, but in any event not later than 10
days following the latest of: (a) the end of the Due Diligence Period, (b) the
satisfaction of the Construction Contingencies, or (c) the end of the period in
which Purchaser may terminate this Agreement pursuant to Section 4.2 ("CLOSING
DATE"). The Closing shall occur at the offices of Title Insurer/Escrow Agent or
at such other location as is mutually agreeable to Purchaser and Seller.
Notwithstanding any other provision of this Agreement to the contrary, should
the parties fail to close on or before May 1, 2004 through no fault of
Purchaser, Purchaser may terminate this Agreement by written notice to Seller
and receive a refund of the Earnest Money and interest earned on it.
9.2 The Closing is expressly conditioned upon the contemporaneous
execution and delivery by each party to the other of the Lease in substantially
the same form as the attached EXHIBIT "B".
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10. CLOSING COSTS.
10.1 Seller shall pay all transfer taxes, escrow fees, the premium for
the Title Policy, the cost of recording the special warranty deed, and any other
closing costs and expenses necessary to transfer title of the Property to
Purchaser, but all such costs may be added to the Purchase Price, and the rent
payable under the Lease shall be increased as specified in this Agreement.
Purchaser shall pay all fees necessary pertaining to placing a mortgage on the
Property.
10.2 Purchaser and Seller shall pay their own attorney's fees.
11. PRORATIONS.
11.1 Through the date of Closing, Seller shall pay any ad valorem taxes,
assessments, and all other operating and maintenance costs pertaining to the
Property (including any charges, fees or assessments, if any, levied or assessed
on or against the Property pursuant to any REA Document). After the date of
Closing, the parties shall be responsible for all such costs, expenses and taxes
in the manner expressed in the Lease.
12. COMMISSIONS.
12.1 Purchaser and Seller warrant and represent to each other that except
for Steve Regenstrief of Marcus & Millichap, there were no other brokers
involved in this transaction. Should this transaction close successfully a
commission of 2% of the total purchase price shall be payable to Marcus &
Millichap upon close of escrow. Purchaser and Seller agree that in the event of
a breach of this warranty and representation, the offending party shall
indemnify and hold the non-offending party harmless with respect to any loss or
claim for brokerage commission, including all attorneys' fees and costs of
litigation through appellate proceedings. This Section of the Agreement shall
expressly survive Closing under this Agreement and any earlier termination of
this Agreement.
13. PROPERTY SOLD "AS-IS".
13.1 Except as expressly set forth in this Agreement, the Property shall
be sold and conveyed by Seller and accepted by Purchaser in "AS IS" condition
without any warranty or representation whatsoever on the part of Seller, express
or implied, as to its condition, classification, past or present use, or
merchantability, fitness or suitability for any particular purpose, use, design,
construction or development, including without limitation any warranty or
representation as to surface or subsurface condition, zoning, or the
sufficiency, accessibility and capacity of utilities for Purchaser's intended
use of the Property, it being agreed that all such risks are to be borne by
Purchaser and that Purchaser is relying solely on its own inspection and
investigation of the Property with respect to such risks and not on any
statement, representation or warranty made by Seller or anyone acting or
claiming to act on behalf of Seller.
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14. REPRESENTATIONS AND WARRANTIES.
14.1 Each party warrants and represents to the other that this Agreement
constitutes the valid and binding obligation of each party, enforceable against
each party in accordance with the Agreement's terms. All actions required to be
taken by each party to authorize it to enter into and carry out this Agreement
have been, or prior to the date of Closing shall be, duly and validly taken.
14.2 Seller represents and warrants to Purchaser that:
(a) Seller has full power and authority to enter into this
Agreement, bind Seller and the Property to the commitments made hereunder, and
convey or cause the conveyance of the Property to Purchaser.
(b) The execution, delivery and performance by Seller of this
Agreement shall not constitute or cause a default or breach of any agreement or
undertaking of Seller or concerning the Property.
(c) No person or entity, except Purchaser, has been granted any
options, rights of first refusal or other purchase rights with respect to the
Property.
(d) No portion of the Property has been condemned or otherwise
taken by any public authority, and Seller has no knowledge that any such
condemnation or taking is threatened or contemplated.
(e) To the best of Seller's knowledge, the Property is not in
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