Exhibit 10.5
LOAN AGREEMENT
between
HINES GLOBAL REIT II 891 CORONADO LLC
and
WELLS FARGO BANK, NATIONAL ASSOCIATION
Entered into as of January 29, 2016
LOAN NO. 1015580
TABLE OF CONTENTS
Page
ARTICLE 1 DEFINITIONS
1
1.1
DEFINED TERMS
1
ARTICLE 2 LOAN
6
2.1
LOAN
6
2.2
GRANT OF SECURITY INTEREST IN REAL PROPERTY
7
2.3
GRANT OF SECURITY INTEREST; APPLICATION OF FUNDS
7
2.4
ADDITIONAL SECURITY INTEREST
7
2.5
LOAN FEE
7
2.6
LOAN DOCUMENTS
7
2.7
MATURITY DATE
7
2.8
FULL REPAYMENT AND RECONVEYANCE, SATISFACTION OR RELEASE
7
2.9
OPTION TO EXTEND
8
ARTICLE 3 DISBURSEMENT
9
3.1
CONDITIONS PRECEDENT
9
3.2
FUNDS TRANSFER DISBURSEMENTS
9
ARTICLE 4 PROPERTY COVENANTS
10
4.1
ASSESSMENTS AND IMPROVEMENT DISTRICTS
10
4.2
INSPECTIONS
10
4.3
LIENS
10
ARTICLE 5 IMPOUNDS
10
5.1
TAX IMPOUND
11
5.2
INSURANCE IMPOUND
11
5.3
GENERAL
11
ARTICLE 6 INSURANCE
11
6.1
TITLE INSURANCE
11
6.2
PROPERTY INSURANCE
12
6.3
FLOOD HAZARD INSURANCE
12
6.4
LIABILITY INSURANCE
12
6.5
OTHER COVERAGE
12
6.6
GENERAL
12
ARTICLE 7 REPRESENTATIONS AND WARRANTIES
12
7.1
AUTHORITY/ENFORCEABILITY
12
7.2
BINDING OBLIGATIONS
12
7.3
FORMATION AND ORGANIZATIONAL DOCUMENTS
12
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LOAN NO. 1015580
7.4
NO VIOLATION
13
7.5
COMPLIANCE WITH LAWS; USE
13
7.6
LITIGATION
13
7.7
FINANCIAL CONDITION
13
7.8
NO MATERIAL ADVERSE CHANGE
13
7.9
ACCURACY
13
7.10
AMERICANS WITH DISABILITIES ACT COMPLIANCE
14
7.11
TAX LIABILITY
14
7.12
BUSINESS LOAN
14
7.13
SURVIVAL OF REPRESENTATIONS AND WARRANTIES
14
7.14
FULL FORCE AND EFFECT
14
ARTICLE 8 REPRESENTATIONS, WARRANTIES AND COVENANTS REGARDING SPECIAL PURPOSE
ENTITY STATUS
14
8.1
REPRESENTATIONS, WARRANTIES AND COVENANTS REGARDING SPECIAL PURPOSE ENTITY
STATUS
14
ARTICLE 9 HAZARDOUS MATERIALS
15
9.1
SPECIAL REPRESENTATIONS AND WARRANTIES
15
9.2
HAZARDOUS MATERIALS COVENANTS
16
9.3
INSPECTION BY LENDER
17
9.4
HAZARDOUS MATERIALS INDEMNITY
17
9.5
LEGAL EFFECT
18
ARTICLE 10 COVENANTS OF BORROWER
18
10.1
EXPENSES
18
10.2
ERISA COMPLIANCE
18
10.3
INCOME TO BE APPLIED TO DEBT SERVICE
19
10.4
MERGER, CONSOLIDATION AND TRANSFER OF ASSETS
19
10.5
CHANGE IN STRUCTURE OR MANAGEMENT; SINGLE-ASSET ENTITY
19
10.6
ADDITIONAL DEBT AND SEPARATE GUARANTY
19
10.7
MANAGEMENT OF PROPERTY
19
10.8
UPDATED APPRAISAL
19
10.9
SUBDIVISION MAPS
20
10.10
FURTHER ASSURANCES
20
10.11
ASSIGNMENT
20
10.12
BROKERS
20
10.13
DERIVATIVE DOCUMENTS
21
10.14
EXISTENCE
21
10.15
TAXES AND OTHER LIABILITIES
21
10.16
NOTICE
21
10.17
DEBT SERVICE COVERAGE RATIO TEST
21
10.18
PATRIOT ACT
21
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LOAN NO. 1015580
ARTICLE 11 FINANCIAL STATEMENTS
21
11.1
BORROWER FINANCIAL STATEMENTS
21
11.2
BOOKS AND RECORDS
22
11.3
RENT ROLL
22
11.4
OPERATING STATEMENTS FOR PROPERTY AND IMPROVEMENTS
22
11.5
OTHER INFORMATION
22
11.6
FORM; WARRANTY
22
ARTICLE 12 DEFAULTS AND REMEDIES
22
12.1
DEFAULT
23
12.2
ACCELERATION UPON DEFAULT; REMEDIES
24
12.3
ACCELERATION UPON LOSS OF SECURITY
24
12.4
DISBURSEMENTS TO THIRD PARTIES
24
12.5
SET OFF
24
12.6
RIGHTS CUMULATIVE; NO WAIVER
24
ARTICLE 13 DUE ON SALE/ENCUMBRANCE
25
13.1
PROPERTY TRANSFERS
25
13.2
EQUITY TRANSFERS
25
13.3
CERTIFICATES OF OWNERSHIP
26
ARTICLE 14 MISCELLANEOUS