Land Condominium. The mortgaged property consists of one unit in a land condominium. The borrower has a 40% voting rights interest in the related owners’ association. Each unit owner has responsibility for maintenance and repairs of its own building and exclusive use easement areas. The association’s duties are limited to landscaping, maintenance of private roads and the like. Amending or terminating the master deed would require the consent of at least 75% of the unit holders and all mortgagees (unless the modification does not adversely affect a particular unit) and the declaration may not be amended without the consent of a majority of the unit holders and all mortgagees. (ii)
Land Condominium. The mortgaged property is comprised of three units that are part of a land condominium (an alternative to land subdivision). The related unit has a 53.19% voting rights’ interest in the owners’ association. Each unit owner has sole responsibility for the maintenance of its respective property and the owners’ association’s duties are limited solely to any common areas. The loan documents provide for recourse liability to the borrower and the guarantor for springing full recourse if the condominium documents are amended, modified without lender’s prior written consent and if the condominium is cancelled, terminated or withdrawn, or the mortgaged property is made subject to any partition, in each case, without lender’s prior written consent. (ii)
Land Condominium. The Sheraton Tarrytown Mortgaged Property is comprised of two units in a four-unit land condominium (an alternative to land subdivision), and a 50% voting rights interest in the related owner’s association. Condominium regimes are authorized by and subject to state statutory requirements, and such requirements may include obligations to protect the rights of unit-holders having a minority ownership interest, among other things. The owners’ association’s responsibilities are limited: it has the obligation, generally, to maintain common elements. The loan documents contain compliance covenants with respect to the existing condominium regime. (ii)
Land Condominium. Borrower owns one unit in three unit land condominium regime, and has 47% voting interest in the owners’ association. The owners’ association is responsible for common area maintenance, but each unit owner is responsible for maintenance of its own building. 18 CVS - Ambler, PA (Loan No. 54) (Insurance) – Borrower’s obligation to provide required insurance (including property, rent loss, terrorism and liability coverage) is suspended if tenant (Pennsylvania CVS, L.L.C.) either provides the third party insurance required by its lease (property and liability insurance only) or elects to self-insure in accordance with its lease. Self-insurance is permitted if, among other things, tenant’s guarantor (CVS Caremark Corporation) maintains a minimum net worth of $100 million and an unsecured debt rating from S & P of no Rep. No. on Exhibit B Mortgage Loan and Number as Identified on Exhibit A Description of Exception less than “BBB-”. CVS has elected to self-insure. Its parent currently has an unsecured debt rating from S & P of “BBB+” and a stated net worth in excess of $30 billion. During the loan term, tenant does not have any right to terminate the lease or axxxx rent following casualty. 28 One Met Center (Loan No. 2) (Recourse Obligations) – Phase I environmental site assessment (ESA) identified historic recognized environmental condition (HREC) associated with the pre-existing landfill area on a portion of the property where certain contaminants were detected above state regulatory thresholds. The fill area is beneath paved and landscaped areas and there are no open regulatory cases associated with the site. In lieu of an environmental carve-out from the guarantors, an environmental insurance policy (Lender Environmental Collateral Protection and Liability Insurance form) was obtained in the amount of $5 million from Steadfast Insurance Company, a member company of Zurich North America, with a 10 year term and 3 year policy tail, and having a $50,000 deductible. A $50,000 Environmental Deductible Escrow Fund was established at loan origination to address the deductible cost, and the policy premium was pre-paid at closing. Zurich North America has an S & P rating of “AA-”. 31 CVS - Ambler, PA (Loan No. 54) (Acts of Terrorism Exclusion) – Borrower’s obligation to provide required insurance (including property, rent loss, terrorism and liability coverage) is suspended if tenant (Pennsylvania CVS, L.L.C.) either provides the third party insurance required by its ...
Land Condominium. The mortgaged property (a leased fee) is part of a land condominium regime (an alternative to land subdivision). The related unit has a 33.33% voting rights’ interest in the condominium regime, but an owners’ association does not currently exist. The loan documents provide for (A) personal liability to the guarantor for losses related to any amendment to the condominium documents without the lender’s prior consent; and (B) springing full recourse to the guarantor if the condominium regime is terminated. (iii)
Land Condominium. The mortgaged property is located on a unit, known as Land Unit A, that is part of a land condominium (an alternative to land subdivision). The owner of Land Unit A has a voting rights interest of approximately 27.4% in the related owners’ association. Each unit owner has sole responsibility for the maintenance of its respective property and the association’s duties are limited solely to any common areas. (B) Office Condominium. The mortgaged property is comprised of 45 out of 54 office units in an office condominium regime. The borrower has a controlling voting rights interest of approximately 83% in the related owners’ association. The loan documents provide recourse liability to the borrower and the guarantor for (i) losses related to any amendment or modification of the condominium documents without lender’s consent and (ii) springing full recourse if the existence of the condominium terminates, expires, is cancelled or otherwise ceases to exist. (ii) Rights of First Offer. (A)
Land Condominium. The mortgaged property is located on a unit, known as Land Unit No. 2, that is part of a land condominium (an alternative to land subdivision). The owner of Land Unit No. 2 has a voting rights interest of approximately 66.7% in the related owners’ association. Each unit owner has Rep. No. on Exhibit C Mortgage Loan and Number as Identified on Exhibit A Description of the Exception
