The IMU zoning district is applied to areas appropriate for a mix of industrial and commercial activities and provides for a full range of goods and services to the community located along portions of industrial/commercial thoroughfares, in conformance with the general plan. This district allows for a mix of industrial and commercial or just industrial or commercial(standalone) land uses.
**PROPERTY ALSO AVAILABLE AS GROUND LEASE**
BASE RENT
The owner is seeking proposals for an unsubordinated net ground lease at a Fair Market Rate.
TERM
The proposed term is negotiable.
PURCHASE OPTION
Negotiable
RENT ESCALATIONS
Ground rent will be adjusted annually to reflect any percentage increases in the Los Angeles Area Consumer Price Index for “All Urban Consumers” (CPI-U; 1982-1984 = 100). To facilitate Lessee’s financing now or in the future, the increases will include a floor of 3% and a cap of 6%. In no event will the ground rent be less than that of the CPI escalated prior year rent.
DUE DILIGENCE & CLOSING
The Lessee will have 45-days after signing the Letter of Intent to inspect the Property and perform general feasibility. Ground lease execution and commencement will occur within 30-days thereafter.
EARNEST MONEY
Upon execution of the Letter of Intent, the Lessee will deposit the full amount of the first year’s rent with North American Title. This Earnest Money is fully refundable until the end of the Due Diligence period, at which time 50% will become payable to Lessor and applicable to the first year’s rent. Lessor and Lessee will agree to negotiate in good faith over the subsequent 30 day period to consummate a ground lease. The remaining 50% of the Earnest Money will be payable at lease execution and will be applicable to the first year’s rent. Should a ground lease not be executed after the Due Diligence period, 50% of the Earnest Money will remain with Lessor as compensation for its lease preparation expenses and lost opportunity cost associated with pursuing a ground lease with the Lessee.
LEASE COMMENCEMENT DATE
Ground lease will commence upon the execution of a ground lease document.
CLOSING EXPENSES
Real estate taxes will be prorated as of the date of Lease Commencement.
AS IS
The property will be leased “AS IS” with no representations or warranties relating to fitness of use, environmental condition or code compliance, etc. Lessor encourages Lessee to conduct its own feasibility and environmental studies.
UNSUBORDINATED GROUND LEASE
The ground lease will be fully unsubordinated. All loans, claims and other interests shall be fully subordinate to the Lessor’s interest in the property.
PERSONAL GUARANTIES
The Lessor will require the Lessee to guarantee the payment of rent and other performance under the lease. The Lessor will require current financial statements from Lessee. The Lessor’s willingness to move forward with a lease is expressly conditioned on its approval, in its sole discretion, of such financials.
COMPLETION ASSURANCE
The Lessee will provide a completion bond or other equivalent financial assurance before undertaking any construction, major renovation or lien able action on the leased property.
ASSIGNMENT
The ground lease shall not be assigned without the prior written consent of Lessor.
APPROVAL RIGHTS
Ground Lessor shall have the right to review conceptual development plans.
REAL ESTATE BROKERAGE COMMISSION
Any commission paid to a broker representing the ground lessee will be determined by a separate agreement.
DISCLAIMER
The ground lease terms identified in this offering memorandum are for discussion purposes only and are not intended to include all deal points.
