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Document Preview Capital Improvement and Tenant Fitout Escrow Agreement |
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Title: |
Capital Improvement and Tenant Fitout Escrow Agreement |
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Entities: |
Cedar Shopping Centers Inc.; Cedar Shopping Centers Partnership, LP; Cedar Townfair, LLC; Midland Loan Services, Inc.; Townfair Center Associates; Wells Fargo Bank, NA; Federal National Mortgage Association |
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Date: |
2004 |
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Size: |
Preview shows 9KB of 35KB total |
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Price: |
$36 |
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ID: |
#254692 |
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Loan No. 03-0220389
CAPITAL IMPROVEMENT AND TENANT FITOUT ESCROW AGREEMENT
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This Capital Improvement and Tenant Fit-Out Escrow Agreement (the
"Agreement") is made as of March 17, 2004 between Wells Fargo Bank N.A. f/k/a
Norwest Bank Minnesota, National Association, as Trustee for the registered
holders of NationsLink Funding Corporation, Commercial Mortgage Pass-Through
Certificates, Series 1998-2, in its capacities as lender and escrow agent
("Lender"), and Cedar Townfair, LLC, a Delaware limited liability company
("Borrower").
RECITALS
--------
A. This Agreement is being executed in connection with Lender's consent to
the assumption by Borrower of a mortgage loan to Townfair Center
Associates, a Pennsylvania general partnership ("Seller") in the
original principal amount of Ten Million Seven Hundred Thousand and
No/100 Dollars ($10,700,000.00) (the "Loan"), and the Loan assumption
is incident to Borrower's purchase of the real property commonly known
as Townfair Center (Phase I & II), 475 South Ben Franklin Road, White
Township, Pennsylvania, being more particularly described on Exhibit A
attached hereto.
B. The Loan is evidenced by a Promissory Note (the "Note"), dated February
13, 1998, made by Seller and is secured by, among other things, an
Open-End Mortgage, Assignment of Leases and Rents and Security
Agreement (the "Security Instrument"), dated as of February 13, 1998,
encumbering that certain real property situated in the County of
Indiana, Commonwealth of Pennsylvania ("State"), as more particularly
described on Exhibit A attached hereto and incorporated herein by this
reference, together with the buildings, structures and other
improvements now or hereafter located thereon (said real property,
buildings, structures and other improvements being hereinafter
collectively referred to as the "Property") and by other documents and
instruments, and the Lender's consent to the transfer of the Property
to Borrower is being made pursuant to a Consent and Assumption
Agreement with Limited Release dated of even date herewith (the
"Assumption Agreement") (the Note, Security Instrument, Assumption
Agreement and such other documents, agreements and instruments, as the
same may from time to time be amended, modified, extended, severed,
split, divided, spread, restated, substituted, supplemented,
consolidated, renewed or replaced, being collectively referred to
herein as the "Loan Documents");
C. As a condition to Lender giving its consent to the assumption of the
Loan by Borrower, the transfer of the Property to Borrower and the
construction of a new 5,000 square foot building on the Property,
Lender has required that Borrower deposit the Escrow Funds (hereinafter
defined) with Lender pursuant and subject to the terms of this
Agreement.
NOW, THEREFORE, to induce Lender to consent to the transfer of the
Property to Borrower, consent to Borrower's assumption of the Loan and consent
to the construction of a new 5,000 square foot building on the Property and in
consideration of the premises and the due performance of the commitments and
agreements hereinafter set forth, and other valuable consideration, the receipt
and sufficiency of which are hereby acknowledged, the parties hereto agree as
follows:
1. Escrow. Borrower shall establish and maintain an escrow of funds with
Lender pursuant to the terms of this Agreement for the payment of
future customary and reasonable bona fide costs and expenses incurred
by Borrower in connection with the (i) construction of a 5,000 square
foot building on the Property ("New Building") and (ii) completion of
tenant improvements required to be paid by Borrower in connection with
a lease ("New Lease") for approximately 3,000 square feet of space in
the New Building (the "Leasing Matters").
Midland 299 1
{PAGE}
2. Deposit of Escrow Funds. All amounts held by Lender at any time in
escrow pursuant to this Agreement are the "Escrow Funds". On the date
hereof, Borrower shall make an initial deposit of $393,310.00 with
Lender, to be held in escrow by Lender according to the terms of this
Agreement. The Escrow Funds shall be disbursed or applied only as
specified in this Agreement.
3. Escrow Account. Lender agrees to hold all Escrow Funds in an Eligible
Account (hereinafter defined) selected by Lender from time to time in
the exercise of its sole discretion (the "Escrow Account"). No earnings
or interest on the Escrow Funds shall be payable to Borrower. The
Escrow Funds shall not constitute a trust fund and may be commingled
with other monies held by Lender. The Escrow Account shall be held in
the name of Lender and shall be within its sole and exclusive control,
and all funds deposited in the Escrow Account shall be for the account
of Lender. Except as provided herein, Borrower shall have no right to
or interest in the Escrow Funds or Escrow Account and shall have no
authority to withdraw Escrow Funds from the Escrow Account. An
"Eligible Account" shall mean either (a) an account maintained with a
depository institution or trust company, the long term unsecured debt
obligations of which are rated in one of the three highest rating
categories by any Rating Agency (hereinafter defined) acceptable to
Lender at the time of any deposit therein or (b) a trust account
maintained with a federally or state-chartered depository institution
or trust company acting in its fiduciary capacity, subject to
regulations regarding fiduciary funds on deposit similar to 12 C.F.R.
Section 9.10(b). The term "Rating Agency" shall mean a nationally
recognized credit rating agency (including, without limitation,
Standard & Poor's Rating Group, Fitch Investors Service, L.P., Moody's
Investors Service, Inc. or Duff and Phelps Credit Rating Co., and their
respective successors and assigns).
4. Permitted Investments. Lender may direct the depository institution
maintaining the Escrow Account to invest the Escrow Funds in one or
more of the following obligations or securities (each a "Permitted
Investment") having, at the time of purchase, the required ratings, if
any, provided for below:
a. Direct obligations of, or guaranteed as to timely payment of
principal and interest by, the United States or any agency or
instrumentality thereof provided that such obligations are backed by
the full faith and credit of the United States of America;
b. Direct obligations of, or guaranteed as to timely payment of
principal and interest by, FHLMC, FNMA or the Federal Farm Credit
System;
c. Demand and time deposits in or certificates of deposit of, or
bankers' acceptances issued by, any bank or trust company, savings
and loan association or savings bank, provided that the short-term
unsecured debt obligations of such depository institution or trust
company must have the highest rating available for such securities
by two or more Rating Agencies acceptable to Lender;
d. Commercial or finance company paper that is rated by two or more
Rating Agencies acceptable to Lender in their highest short-term
unsecured rating category at the time of such investment and is
issued by a corporation the outstanding senior long-term debt
obligations of which are then rated by two or more Rating Agencies
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