Principal Balance: $26,264,722, as of June 1, 2013
Structure: Series B Zero-Coupon Bond, Subordinated to the A-Note
Repayment: Limited to any excess proceeds after the A-Note debt service is paid; Repayment expected to average approximately $88,000 per year over the 20-year Initial Lease Term
Balloon Amount: $104,000,000
Term: 20 years
Maturity: May 15, 2033
Collateral: Second Mortgage and Pledge of beneficial interests in the fee-holding Trust.
Lease Structure: The lease is absolute-net with the Tenant being responsible for all costs and performance of all operations and maintenance, repair, and replacement of the property, including the roof and structural portions of the building.
Casualty/Condemnation: Tenant is obligated to rebuild in the event of a casualty with no abatement of rent and has no right to terminate the Lease save for a major casualty in the last 12 months of the Lease or a major condemnation. Condemnation insurance has been obtained.
Initial Lease Term: May 21, 2013 – May 31, 2033
Extension options: Four 5-year extension options, at the lesser of 95% of FMV rent or 102% of the previous year’s rent, with annual 2% increases each year.