1) The rent for the first month is $7,065.34 or $84,784.08, this is way over budget. How are we going to recover in sales? With a new shopping center with no track record?
2) I am signing a 10 year fixed Lease and I am guaranteeing it for 10 years. In the Guaranty part, I have the option of assigning it to someone else or Southern Management, but this is just an option. If I assign it to anyone, I am guaranteeing a 10 year Lease of more than 90 k a year!!!! This is not what I agreed, I signed a 5 year project, not 10.
3) Gross Sales Termination Rights, clause 2, it states 600k, I'm not understanding because it talks about from 79 to 90 months. If we dont make that annually (12 months) I dont have to pay the Lease. Can you explain what this means? When can this clause be used and when can the cancellation right be extinct?
4) How does the TI money work? What can that be spent on and how is that gonna be connected to the 500k of the initial investment?
We had a conference call with him tonight to discuss them, the risks and decide how to move forward with the lease. Alcides chose to move forward with the lease and will be sending it in in the morning. The call took place at 7pm EST with Amanda Ramirez, Sabrina Wall and Alcides Ferreira.