Fractional Condominium Sample Clauses
Fractional Condominium. For one of the 14 constituent properties (Huntsville, AL), the borrower owns one building that is included within a condominium regime, and has a 25.4% voting interest in the related owners’ association. The building owner is responsible for all building maintenance, and owners’ association responsibility is for common area maintenance. (ii) Environmental Risk Mitigation Restrictions. Two of 14 constituent properties are subject to use restrictions related to recognized environmental conditions, as follows: (A) Muskegon, MI Property. Phase I and Phase II investigations identified elevated levels of various contaminants, including cyanide, lead and mercury, above regulatory action levels. The property is subject to a Remedial Action Plan approved by the Michigan Department of Environmental Quality that included “capping” the site with clean fill material and impervious surfaces, relocating utilities to one side of the site to facilitate access for redevelopment, and installing a vapor barrier and sub-slab depressurization system to mitigate vapor intrusion risks. Baseline environmental assessments have been filed by successive owners of the property, including the borrower, that result in exemption from liability arising from pre-existing on-site contamination. Restrictive covenants affecting the property have been recorded that limit uses of the property, including future development activities, that would disturb soils or groundwater. (B) Milwaukee, WI Property. Phase I ESA identified historic recognized environmental condition related to prior manufacturing uses. A February 2011 Cap Maintenance Plan and Materials Handling Plan was prepared and approved to maintain the existing cap on contaminated soils and provide a soils handling plan should the site be excavated. Various activities are prohibited as a condition of April 2011 regulatory closure, including removal or replacement of existing barriers, excavating or grading the land surface, adding fill to capped or paved areas, constructing additional structures or changing any building that has passive or active vapor mitigation systems in place. No further action deemed necessary based on prior regulatory closure other than ongoing compliance.
Fractional Condominium. The mortgaged property is comprised of six units in an eight unit office/ retail condominium regime. The co-borrowers have an 87% voting rights interest in the related owners’ association, and the ability to affirmatively control association decisions, other than actions requiring unanimous consent: generally, changes in the allocation of common area (Unit 7) shared costs, increasing or reconfiguring units, or voting rights changes. The loan documents provide for personal liability to the co-borrowers and guarantors for losses related to the amendment or termination of the condominium documents without the lender’s prior consent, or the partitioning of any units comprising the mortgaged property.
Fractional Condominium. Mortgaged property is shadow anchored by Target, and a condominium association includes both the Mortgaged Property, the Target parcel, and other adjacent parcels comprising the larger retail project; Target’s vote is required for all votes of the condominium association; Borrower has a majority of the voting rights not held by Target, but it does not have the ability to affirmatively control the association; The association’s responsibilities, however, are limited: each unit owner has responsibility for maintenance of the buildings located on its respective unit, and association responsibilities are primarily related to roads, walkways, landscaping and signage.
Fractional Condominium. The mortgaged property is comprised of certain commercial units (having 140 out of 200 votes and a 71.29% of shared costs) in a mixed use condominium regime. The commercial units include five basement levels, floors 1-38 (retail and office space) of a 57-story building, the bridge connecting the mortgaged property to the Transbay Terminal Rooftop Park, the roof of the building and related parking garage. Floors 39 to 57 contain residential units that are not included in the collateral. In addition to its majority voting rights interest, the borrower has the power to appoint three of the five members of the related board of directors. The loan documents provide for springing full recourse to the borrower and guarantors if the borrower amends, cancels, terminates or otherwise modifies (or waiver of any material term) the condominium documents without lender’s prior written consent as required under the loan documents.
Fractional Condominium. Borrower owns both commercial units in a mixed use condominium regime including 39 residential units, together with related parking rights in an adjacent parking garage owned by the City of East Lansing, MI. The retail units comprise 27.97% of the total association ownership. The condominium documents require major votes to be determined by 80% of the commercial unit owners and 80% of the residential unit owners, such that the borrower’s approval is required for all major actions of the owners’ association. The loan documents provide for springing recourse to the borrower and guarantor if there is any modification or termination of the condominium documents or if the property is subject to a partition action without the lender’s consent.
Fractional Condominium. The mortgaged property consists of 20 units (retail and office) in a 21-unit condominium regime (floors 3-8 comprise a separate, third party-owned condominium unit that is not security for the loan). The borrower has a 71.9% voting rights interest in the related owners’ association, and appoints 2 of 3 seats on the condominium board. With the exception of amending or terminating the condominium regime, or leasing space to certain competitors of the minority owner (Young & Rubicam, the #2 tenant at the property), actions that would require the consent of the minority owner, the borrower has the authority to affirmatively control the association. The loan documents provide that the borrower and guarantor have personal liability for losses related to a material modification or termination of any condominium documents with lender’s prior written consent.
Fractional Condominium. The mortgaged property consists of 7 units in an 11-unit, mixed-use condominium project. The borrower has an 89.59% voting rights interest in the owners’ association, and the authority to appoint the three members of the association’s board of directors. The loan documents provide for springing personal recourse to the borrower and guarantors if the condominium declaration is terminated or partitioned. (ii)
Fractional Condominium. The mortgaged property is comprised of the hotel unit in a 2 unit condominium regime with the other unit being the parking garage unit, which is currently owned by an affiliate of the borrower. The borrower has 50% of the voting rights in the related owners’ associations and the right to appoint half of the members of the related board of directors. While the borrower does not affirmatively control the association, its consent would be required in connection with any major decision, including, any decisions made by the board of directors whose decisions are subject to majority vote. The loan documents provide for full recourse to the borrower and guarantors if the rules or condominium regime is amended, modified, cancelled, terminated or withdrawn by the borrower or with the consent or acquiescence of the borrower, or the mortgaged property is made subject to any partition, in each case without lender’s prior written consent. (ii) Franchisor Conditional ROFR. Marriott International, Inc., franchisor, has Right of First Refusal (ROFR) to acquire the mortgaged property if there is a transfer of (x) the hotel or (y) an ownership interest in the borrower or an affiliate of the borrower who controls the borrower to a competitor (generally, any person that exclusively develops, operates or franchises through or with a competitor of franchisor comprising at least 10 luxury service hotels, 20 full service hotels or 50 limited service hotels). ROFR is not extinguished by foreclosure or deed-in-lieu thereof, and if transfer to competitor is by foreclosure, or if franchisee or its affiliates become a competitor, franchisor has right to purchase hotel upon notice to franchisee. Franchisor comfort letter provides that, if lender exercises remedies against franchisee, lender may appoint a lender affiliate to acquire the property and enter into a management or franchise agreement if it is not competitor or competitor affiliate; provided, however, that a lender affiliate will not be deemed a competitor simply due to its ownership of multiple or competing hotels or having engaged managers to manage such other hotels.
Fractional Condominium. The Mortgaged Property is comprised of the entirety of ground floor retail condominium units in a 7-story, retail-residential mixed-use condominium project. The related borrower has 30% (63 of 210 total votes) 70.3% of the voting rights in the owners’ association, and the right to appoint 2 of 5 owners’ association board members. The borrower lacks the voting rights necessary to affirmatively control the owners’ association’s operations; however, amendments to the condominium regime that negatively impact commercial operations at the project are prohibited without the consent of a majority of the commercial units owners or 100% of the residential owners; provided, further, that any amendment that affects the rights of any mortgagee must be approved by the affected mortgagees. The loan documents provide for personal liability to the borrower and guarantors for losses if the condominium regime is amended or terminated, or the property is subject to any partition, without the lender’s consent. Further, since the owners’ association refused to include an ongoing undertaking to provide borrower and lender with notices of borrower default, the loan documents further provide that the borrower provide lender with proof that quarterly CAM payments have been paid, and the borrower is required to fund a springing reserve if it fails to provide such proof of payment.
Fractional Condominium. Portions of the mortgaged property are included within a land condominium regime. The borrower’s voting rights interest in the association is 28.1%. While the borrower does not affirmatively control the association, its consent would be required in connection with various major decisions, including an election not to rebuild following casualty (85% of votes required), changes to established monthly assessments (85% of votes required), and amendments to condominium documents (90% of allocated votes of unit owners, together with 50% of first mortgagees of owners, required). Each unit owner has sole responsibility for its respective buildings, and the association’s duties with respect to the residual common elements are accordingly circumscribed.