Spectrus Real Estate – Master Lease Summary
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- Term
- The master lease is a 20-year term with three 10-year renewal terms (note: the lease has an option to terminate after 10 years by the lessee). The owner can cancel the lease at any time.
- Rent
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First-year rent is based on the amount of equity purchased. The rent typically escalates
periodically over the entire lease period.
- Operating Expenses
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All operating expenses, including utilities, repairs and maintenance (excluding roof, exterior
walls, and foundation), property and liability insurance, and property tax will be paid by the lessee.
- Debt Service
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All debt carrying expenses are paid for by the Lessee.
- Alterations & Improvements
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Necessary or financially viable alterations and improvements to the property will be supported
through proceeds from additional or replacement loans not to exceed a loan to value ratio of 75%.
- Default by Lessee
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In the event that the lessee becomes insolvent or files for bankruptcy, fails to pay when due any
rent or any other payment pursuant to the lease, fails to comply with any term, covenant, or
provision of the lease, or acts in a way that results in a lien being filed against any portion of
the leased premises, the lessee shall be deemed in default under the lease (subject to reasonable
cure provisions).
- Default Remedies
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In the event of a default, the owner may terminate the lease, take possession of the property,
or take actions to cure the default without liability to the owner and with rights to recover
any damages including unpaid balance of rent for the entire term.
- Lease Termination without Lessee Default
- The master lease terminates at the sale of the property in its entirety or whenever the owner votes to terminate it.
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Legal Disclaimer: The brief summary above is qualified in its entirety by the complete document
referred to. In case of any discrepancy, the complete document will control.
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