Form 9-2: Supermarket Tenant Build-to-Suit Lease Letter of Intent; Tenant Builds Tenant’s Building; Landlord Constructs On- and Off-Site Improvements and Purchases Building after Tenant’s Completion
(21 pages)
$30
Form addresses:
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Tenant.
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Lease term (and options).
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The tenant's parcel and leased premises.
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Area of major tenant's parcel and adjustments thereto.
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Parcelization (recommended but optional).
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Landlord's construction of on- and off-site work.
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Specific items included within "Site Work or "Site Costs".
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Tenant's construction of Building.
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Specific items included within the cost of the building (building design/construction, building studies, permits, financing expense and any other direct costs for the building. Note: in this form governmental impact fees or assessments are not included in the Building Cost but are included in Site Costs.)
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Specific items not included within the "Building Cost" (shopping center grading plan, center processing fees such as for site plan review and on- and off-site costs).
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Landlord's purchase of completed building.
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Annual rent (after Building Transfer Date) as the sum of Building Cost Rent, Site Costs Rent and Land Rent.
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Increase (or decrease) in Building Rent based upon unexpected increase (or decrease) in Building Cost.
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Increase (or decrease) in Site Costs Rent based upon unexpected increase (or decrease) in Site Costs.
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Mutual lease cancellation right if Site Costs exceed an Agreed Maximum.
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Increases to annual rent based upon Increases in Consumer Price Index.
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Percentage Rent.
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Rent Commencement: various landlord or tenant oriented alternatives.
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Preliminary Rent: Pre Building Transfer Rent, Rent if Landlord Fails to Purchase Building from Tenant, Post Building Transfer Rent.
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Building repair and maintenance.
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Real estate taxes and assessments.
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Common area maintenance.
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Insurance.
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Utilities.
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Signs.
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Assignment and subletting.
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Developer oriented: Obligation of tenant to open fully stocked with short-term operating covenant.
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Developer oriented "go dark" termination/re-purchase right.
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Major tenant oriented co-tenancy clause.
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Major tenant oriented optional "Concurrent Shops Construction" clause
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Example: Food and Drug Restrictions.
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Major tenant oriented "Use Restrictions".
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Commissions.
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Conditions which must be approved by tenant's real estate committee (final site plan, access, investigations and documentation).
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Financing contingency (developer oriented).
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Non-binding letter.
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Landlord oriented optional "Landlord Limited Exclusive Right": For a fixed period following execution of this letter tenant promises to (i) make a good faith effort to obtain real estate committee approval for the proposed transaction and (ii) not negotiate with other land owners within an agreed radius of the site.
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Exhibit: Sample "Building Specifications" used to describe the construction items to be included in the cost of tenant's building.
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Exhibit to provide for major shopping center pylon or monument signs.