Document:

Unassociated Document

Exhibit 10.16

FIRST AMENDMENT TO TRIPLE NET LEASE AGREEMENT

 

This FIRST AMENDMENT TO TRIPLE NET LEASE AGREEMENT (the "First Amendment") is entered into as of March 1, 2010, by and between ARC HDCOLSC001, LLC, a Delaware limited liability company ("Landlord") and HOME DEPOT U.S.A., INC, a Delaware corporation ("Tenant").

 

RECITALS

 

WHEREAS, US Real Estate Limited Partnership, a Texas limited partnership ("Original Landlord") and Tenant previously entered into that certain Triple Net Lease Agreement dated May 15, 2009, as assigned by that certain Assignment and Assumption of Lease, dated November 6, 2009, by and between Original Landlord and Landlord (as assigned, the "Lease") for the lease of approximately 465,600 square feet located at 420 Foster Brothers Drive, West Columbia, South Carolina 29172, and being more particularly described in the Lease;

 

WHEREAS, Landlord and Tenant have agreed to amend the Lease to specify the Rent Commencement Date, the Rent and certain other terms, all as more particularly set forth below;

 

WHEREAS, Landlord and Tenant desire to memorialize their understanding and modify the Lease consistent therewith on the terms and conditions set forth below.

 

AGREEMENT

 

NOW, THEREFORE, in consideration of the mutual covenants and agreements set forth herein, and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereby agree as follows:

 

1.           Definitions. All capitalized terms used, but not otherwise defined, herein shall have the meanings ascribed to them in the Lease.

 

2.           Lease Term. Landlord and Tenant hereby amend the Lease by deleting the first and second sentences in Paragraph 2.1 of the Lease, and substituting in lieu thereof:

 

This Lease shall commence on December 1, 2009 (the "Commencement Date").

 

3.           Rent. Pursuant to a savings in the construction budget, Landlord and Tenant hereby amend the Lease to reduce the Base Rent amount by deleting Exhibit "B" attached to the Lease in its entirety and substituting in lieu thereof Exhibit "B" attached to this First Amendment. Tenant shall commence paying the reduced payment on May 1, 2010, and shall offset the overpayment calculated in Paragraph 4 below against the April payment (as reduced per this First Amendment) of Base Rent.

 

4.           Reconciliation of Rent Paid to Date. Landlord acknowledges that Tenant has paid Base Rent for the months of December 2009, and January, February and March of 2010, at the original monthly Base Rent amount of $164,900.00 for a total payment to date of $659,600.00. Pursuant to this First Amendment, and the reduction in the amount of Base Rent, Tenant should have paid $620,043.36 for those months. Accordingly, Tenant will offset the April payment of Base Rent by its overpayment of Thirty Nine Thousand Five Hundred Fifty Six and 64/100ths Dollars ($39,556.64), so that the April payment shall be One Hundred Fifteen Thousand Four Hundred Fifty Four and 20/100ths Dollars
($115,454.20).

 

  

1

  

 

5.           Tax Notices. Paragraph 4.1 of the Lease is hereby amended to add the following provision:

 

If required under this Lease, Landlord shall deliver notices regarding taxes, or the real estate tax bill together with a written request for payment by Tenant, to Tenant at to the following address:

 

Home Depot U.S.A., Inc.

Property Tax Department

P. O. Box 105842

Atlanta, Georgia 30348-5842

Re: Store 5088

 

6.           Notices. Paragraph 23.4 of the Lease is hereby amended to delete the notice address of Tenant, and to insert the following in lieu thereof as the sole non-tax notice address for Tenant under the Lease:

 

Home Depot U.S.A., Inc. 

2455 Paces Ferry Road, NW

Atlanta, Georgia 30339

ATTN: Property Management

 

7.           Full Force and Effect. Except as expressly modified herein, all of the terms and provisions of the Lease shall remain in full force and effect and binding upon the parties thereto, and Tenant and Landlord each hereby ratifies and confirms the Lease as modified herein.

 

8.           Conflicts. In the event of any conflict between the terms and provisions of the Lease and the terms and provisions of this First Amendment, the terms and provisions of this First Amendment shall control.

 

9.           Counterparts. This First Amendment may be executed in any number of counterparts, each of which shall be deemed an original, and all of such counterparts shall constitute one agreement.

[SIGNATURES CONTAINED ON FOLLOWING PAGES]

 

  

2

  

IN WITNESS WHEREOF, the parties have executed this First Amendment as of the date first written above, the execution and delivery thereof having been duly authorized.

	  	
LANDLORD:

	  	  
	  	
ARC HDCOLSC001, LLC, a Delaware

	  	
limited liability company

	  	  	  
	  	
By: 

	
/s/ William M. Kahane

	  	  	
William M. Kahane, President

 

[SIGNATURES CONTINUED ON NEXT PAGE]

 

  

3

  

 

[SIGNATURES CONTINUED FOR FIRST AMENDMENT TO

TRIPLE NET LEASE AGREEMENT

FROM PREVIOUS PAGE]

	  	
TENANT:

	  	  
	  	
HOME DEPOT U.S.A., INC., a Delaware

	  	
corporation

	  	  	  
	  	
By:

	
/s/ Jennifer M. Evans

	  	  	  
	  	
Name:

	
Jennifer M. Evans

	 	 	 
	  	
Title:

	
Attorney

 

  

 

  

 

EXHIBIT “B”

 

BASE RENT

 

	
Building Area

	
465,600

 

	
Project Cost

	
$20,790,079.37

 

	 	 	 	
Annual

	 	 	
Annual

	 	 	
Annual

	 
	
Year

	 	 	
Escalation

	 	 	
Rent

	 	 	
Rent/Month

	 
	1	 	 	 	0	%	 	$	1,860,130.10	 	 	$	155,010.84	 
	2	 	 	 	2	%	 	$	1,897,332.70	 	 	$	158,111.06	 
	3	 	 	 	2	%	 	$	1,935,279.36	 	 	$	161,273.28	 
	4	 	 	 	2	%	 	$	1,973,984.94	 	 	$	164,498.75	 
	5	 	 	 	2	%	 	$	2,013,464.64	 	 	$	167,788.72	 
	6	 	 	 	2	%	 	$	2,053,733.93	 	 	$	171,144.49	 
	7	 	 	 	2	%	 	$	2,094,808.61	 	 	$	174,567.38	 
	8	 	 	 	2	%	 	$	2,136,704.79	 	 	$	178,058.73	 
	9	 	 	 	2	%	 	$	2,179,438.88	 	 	$	181,619.91	 
	10	 	 	 	2	%	 	$	2,223,027.66	 	 	$	185,252.30	 
	11	 	 	 	2	%	 	$	2,267,488.21	 	 	$	188,957.35	 
	12	 	 	 	2	%	 	$	2,312,837.98	 	 	$	192,736.50	 
	13	 	 	 	2	%	 	$	2,359,094.74	 	 	$	196,591.23	 
	14	 	 	 	2	%	 	$	2,406,276.63	 	 	$	200,523.05	 
	15	 	 	 	2	%	 	$	2,454,402.16	 	 	$	204,533.51	 
	16	 	 	 	2	%	 	$	2,503,490.21	 	 	$	208,624.18	 
	17	 	 	 	2	%	 	$	2,553,560.01	 	 	$	212,796.67	 
	18	 	 	 	2	%	 	$	2,604,631.21	 	 	$	217,052.60	 
	19	 	 	 	2	%	 	$	2,656,723.84	 	 	$	221,393.65	 
	20	 	 	 	2	%	 	$	2,709,858.31	 	 	$	225,821.53Unassociated Document

Exhibit 10.17

ASSIGNMENT AND ASSUMPTION OF LEASE

 

For valuable consideration, the receipt and sufficiency of which are hereby acknowledged, US REAL ESTATE LIMITED PARTNERSHIP, a Texas limited partnership (the “Assignor”), hereby assigns and delegates to ARC HDCOLSC001, LLC, a Delaware limited liability company, (the “Assignee”), and Assignee
hereby agrees to assume and accept the assignment and delegation of all of Assignor’s right, title and interest in and to any obligations under that certain Triple Net Lease Agreement dated effective May 15, 2009 by and between Assignor and Home Depot U.S.A., Inc., a Delaware corporation (the “Lease”).

 

Assignor hereby agrees to indemnify Assignee against and hold Assignee harmless from any and all cost, liability, loss, damage or expense, including, without limitation, reasonable attorneys’ fees, originating or relating to the period prior to the date hereof and arising out of the Assignor’s obligations under the Lease. Assignee hereby agrees to indemnify Assignor against and hold Assignor harmless from any and all cost, liability, loss, damage or expense, including, without limitation, reasonable attorneys’ fees, originating or relating to the period on or after the date hereof and arising out of the Assignee’s obligations under such leases.

 

If any litigation between Assignor and Assignee arises out of the obligations of the parties under this Assignment or concerning the meaning or interpretation of any provision contained herein, the losing party shall pay the prevailing party’s costs and expenses of such litigation, including, without limitation, reasonable attorneys’ fees.

 

This Agreement may be executed and delivered in any number of counterparts, each of which so executed and delivered shall be deemed to be an original and all of which shall constitute one and the same instrument.

 

[Signature and Notary Page to follow]

 

  

  

  

 

IN WITNESS WHEREOF, Assignor and Assignee have executed this Assignment effective as of the 6 day of November, 2009.

 

ASSIGNOR:

 

US REAL ESTATE LIMITED PARTNERSHIP,

a Texas limited partnership

	
By:

	
USAA REAL ESTATE COMPANY,

	 
	  	
a Delaware corporation, its general partner

	 
	  	  	  	 
	  	
By:

	
/s/ John G. Post

	 
	  	
Name:

	
John G. Post

	 
	  	
Title:

	
Assistant Vice President

	 

	
THE STATE OF TEXAS

	
§

	  	  
	
COUNTY OF BEXAR

	
§

 

BEFORE ME the undersigned authority, on this day personally appeared John G. Post, the Assistant Vice President of USAA Real Estate Company, a Delaware corporation, the general partner of US REAL ESTATE LIMITED PARTNERSHIP, a Texas limited partnership, on behalf of said limited partnership.

 

GIVEN under my hand and seal of office on this 5th day of November, 2009.

 

	

	  	
/s/ Peggy Siefken

	
NOTARY PUBLIC

	
Peggy Siefken

	
Typed or Printed Name of Notary

	
MY COMMISSION EXPIRES: 6/3/2010

 

  

  

  

 

ASSIGNEE:

ARC HDCOLSC001, LLC,

a Delaware limited liability company

 

	
By:

	
/s/ William M. Kahane

	 
	
Name:

	
William M. Kahane

	 
	
Title:

	
President

	 

 

THE STATE OF NEW YORK   §

COUNTY OF NEW YORK        §

BEFORE ME the undersigned authority on this day personally appeared William M. Kahane, the President of ARC HDCOLSC001, LLC, a Delaware limited liability company, on behalf of said limited liability company.

GIVEN under my hand and seal of office on this 9 day of November, 2009.

 

	 	/s/ Eve LaMonica
	  	
NOTARY PUBLIC

	    	    
	  	Eve LaMonica  
	  	
Typed or Printed Name of Notary

	  	
MY COMMISION EXPIRES:________________________

	  	  
	  	
Eve LaMonica

	  	
Notary Public, State of New York

	  	
No. 01LAB164026

	  	
Qualified in New York County

	  	
Term Expires April 9, 2011

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