Deal Approval Form -Renee Rayne's Clothing

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Deal Approval Form -Renee Rayne's Clothing Powered By Docstoc
					GC Properties, Inc.
TO:                  Maggie Georgilas

CC:

FROM:                Kirk Coult

DATE:                January 4, 2002

RE:                  Lake Arrowhead Village – Renee Rayne’s Clothing & Gifts




Attached for your review and approval is the 1) NER-DAAG and 2) DDR Invoice for the above
referenced New Lease. Following is a synopsis of the deal:

         Item                            New Terms                 Budget
         Suite / Size                       1,600           2001 Budget Assumed
         Base Rent                          $1.90              Space Would Be
         Rent Commencement               *see below          Vacant Throughout
         Annual Rent Steps               4% annually                2001
         Percentage Rent/Reports             6%
         Sales
         Tenant Improvements              $6,000.00
         Landlord Work                  $35,000.00**
         TOTAL (TI + LL Work)            $41,000.00
         Term                              10 years
         Options (Y/N)?                      No
         Option Terms (Number,              N/A
         length, economics)
         Relocation/Termination           Yes / Yes
         NNN?/Mgt Fee/ Admin            Yes/Yes/15%
         Co-tenancy?                         No

*Rental commencement shall be 75 days after Landlord’s work is complete.
Note: Tenant is taking 1,600 square feet of space O2-100. The 1,600 square feet next to space O2-150,
Razzbearies.
**Breakdown of Construction Costs to follow.

The lease form is our standard form, and there are no material non-standard additions or revisions
to the contract.

Recommendation: Tenant has a history in apparel and accessories, retail and wholesale business
ownership, and has put together a plan to add a complimentary store to the Lake Arrowhead Village
tenant mix.

Please let me know if you have any questions or require any additional information. If approved,
please process this Lease Agreement.
Memorandum to Maggie Georgilas
January 4, 2002
Lake Arrowhead Village/Renee Rayne’s Clothing & Gifts
 Page 2

                      NET EFFECTIVE RENT SHEET
Prepared by: Kirk Coult/Laurie McDaniel
Asset: Lake Arrowhead Village
Tenant: Renee Rayne's Clothing &
Gifts
Date: January 4, 2002
                                       2001 Budget                    Final
           PROPERTY                  Lake Arrowhead              Lake Arrowhead
         ADDRESS/SUITE                   O2-100                      O2-100

       SQUARE FOOTAGE                         3,200                        1,600
          TERM (YEARS)                                                      10.0
    RENT PER SF PER MONTH                                 0.00             $1.90       22.80
    # OF MONTHS FREE RENT                       0.0                           0.0
       LANDLORDS WORK                            $0      $0.00        $35,000.00       $0.00
     TENANT IMPROVEMENT                          $0      $0.00            $6,000       $0.00
          ALLOWANCE
         INTEREST RATE                       12.00%                      12.00%

                                                      PER S.F.                      PER S.F.

 AVERAGE MONTHLY CONTRACT                        $0      $0.00            $3,650       $2.28
           RENT

               LESS:
   (FREE RENT AMORTIZATION)                       0       0.00                 0         0.00
        (LEASE COMMISSION                         0       0.00             (168)       (0.10)
          AMORTIZATION)
 (T.I / LL WORK AMORTIZATION)                     0       0.00             (588)       (0.37)
      NET EFFECTIVE RENT                         $0      $0.00            $2,894        $1.81


                                                       Rent                          Rent
                                                      Growth                        Growth
   AVERAGE CONTRACT RENT                                 1.03                          1.04

            YEAR 1                               $0 $0.0000               $3,040     $1.9000
            YEAR 2                               $0 $0.0000               $3,162     $1.9760
            YEAR 3                               $0 $0.0000               $3,288     $2.0550
            YEAR 4                               $0 $0.0000               $3,420     $2.1372
            YEAR 5                               $0 $0.0000               $3,556     $2.2227
            YEAR 6                               $0 $0.0000               $3,699     $2.3116
            YEAR 7                               $0 $0.0000               $3,847     $2.4041
            YEAR 8                               $0 $0.0000               $4,000     $2.5003
            YEAR 9                                  $0.0000               $4,160     $2.6003
            YEAR 10                              $0 $0.0000               $4,327     $2.7043
         AVERAGE RENT                            $0 $0.0000               $3,650     $0.0000

     TOTAL CONSIDERATION                         $0                     $437,983
Deal At-A-Glance
Center Name:        Lake Arrowhead Village                                                                 Date:     January 4, 2002
Address of Premises:        28200 Highway 189                                            Bldg:            O1       Space:     200
Tenant Name:         Sandra Lynn McColm and Ronald Anthony Galczak
Trade Name:         Renee Rayne’s Clothing & Gifts                                                   Store Size:                  1,600 SF
Address of Tenant:         P.O. Box 5505
City:    Blue Jay                                     State:     CA         Zip:     92317              Phone:       (909) 336-7389
Contact Name:         Sandra Lynn McColm                                                                Phone:        (909) 336-7389
Use Clause:      Apparel and accessories including the incidental sale of gifts and home furnishings. Tenant agrees
                 that its primary lines will not overlap with another retailer in Lake Arrowhead Village at the time
                 Tenant opens for business.
Any exclusives/restrictions?           None
Term of Lease:       10       Yrs.      0         Mos.          # of Options: 0              Length of Options:             N/A
Lease Commencement Date:                January 15, 2002                   Rent Commencement Date:                  75     days    after
                                                                                                                    Landlord’s work is
                                                                                                                    complete
Amount of Free Rent:          0              Mos.         CAM, Taxes, Ins. Included?                Yes:                    No:
Security Deposit:         $3,040.00 Prepaid Rent/Exp:                     Yes:             No:      X          Amount:         N/A
Min. Monthly Rent:           $3,040.00          Adjustments:              Scheduled:      4%       CPI:                Max/Min:
Minimum           Mos: 1-xx          $/mo                  $/yr.
Rent              1-12               $3,040.00             $36,480.00
Adjustments:      4%                 annually
Percent Rent:       6%            Artificial Breakpoint:              Natural                    Reporting Freq.:           Monthly
CAM, Taxes, Ins.: Standard: Yes:                  X            No:                 If “No,” explain:
Administrative Fee:         15%          Exclusions:            None
Management Fee:             Yes
Occupancy Date:           Estimate May 1, 2002                   Construction Period:             N/A
Landlord’s Work: “AS IS”                        Vanilla Shell          X         Other             Amount:
Tenant Allowance:          $6,000.00
Landlord Termination Right?            Yes            If “Yes,” explain:            Landlord has the right to terminate this lease at
                                                                                    the end of year three (3) if Tenant’s sales are not
                                                                                    averaging $200.00 per square foot annully.
Co-tenancy?      No          If “Yes,” explain:                N/A
Non-standard lease provisions (signage, relocation, CAPS, etc.?)                          See attached
Conflicts with existing exclusives? If yes, explain.                 No
Financials (type and dates):
Comments/Nature of
financial review:
DEVELOPERS DIVERSIFIED CORPORATION
BURNHAM PACIFIC
COMMISSION APPROVAL

DATE:                                                    1/4/02
PROPERTY:                                   Lake Arrowhead Village
NAME OF TENANT:                             Renee Rayne's Clothing & Gifts
TYPE OF LEASE:                                       X                New                                          Renewal
SQUARE FOOTAGE LEASED:                                   1,600
LEASE TERM:                                                 10        yrs.                                 0       Months
COMMENCEMENT DATE EXPECTED:                              5/1/02


RENT PER SQUARE                                  Annual                      Annual               Annual                 Annual
FOOT:
                                                 Rent/SF                         Rent            Rent/SF                 Rent
              Year One                          $        22.80          $ 36,480.00
              Year Two                          $        23.71          $ 37,936.00
              Year Three                        $        24.66          $ 39,456.00
              Year Four                         $        25.65          $ 41,040.00
              Year Five                         $        26.67          $ 42,672.00
              Year Six                           $            -              $           -        $    27.74             $44,384.00
              Year Seven                         $            -              $           -        $    28.85             $46,160.00
              Year Eight                         $            -                                   $    30.00             $48,000.00
              Year Nine                          $            -                                   $    31.20             $49,920.00
              Year Ten                           $            -                                   $    32.45             $51,920.00
TOTAL RENTS:                                                            $ 197,584.00                                 $ 240,384.00
COMMISSION PERCENTAGE:                                            A                     6%                     B                3.0%
                                                                        $ 11,855.04                                  $     7,211.52


TOTAL COMMISSION (A+B)                                                  $ 19,066.56


WAS AN OUTSIDE BROKER USED?                 X                         Yes                                          No
NAME OF BROKER:                             GC Properties
OUTSIDE COMMISSION AMOUNT:                       $14,686.88
COMMISSION DUE DDR                              $ 4,379.68
LEASING MANAGER (Print Name & Sign):                                  Margaret Georgilas


APPROVED BY (Print Name & Sign):                                      Margaret Georgilas


Commission Structure:
New Leases with a cooperating Broker                                                         New Leases without a cooperating Broker
 6.0% of the base rent for years 1 - 5                                                         5.0% of the base rent for years 1 - 5
 3.0% of the base rent for years 6 - 10                                                        2.5% of the base rent for years 6 - 10
Ground Leases:
  3.0% of the base rent for years 1 - 5 ;       1.5% of the base rent for years 6 - 10
Renewals:
  50% of the commission that would be paid for a new lease
  The parties acknowledge that a "renewal" is an execution of a new lease with a tenant
  for a space previously occupied by such tenant for the term exceeding the last date
  of any extension option set forth in the existing lease with such tenant.
Timing:
  50% payment on complete execution of unconditional lease - remainder paid upon commencement

				
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