[sheet: Cover]

[sheet: Cover]
Field | Value
Document Title | Closing Settlement Statement — Seller
Prepared By | Calderwood & Harkness LLP
C&H Matter Number | 1036-00004
Date of Closing | June 6, 2024
Seller | Greystone Meridian Partners Fund III, L.P., a Delaware limited partnership
Seller EIN | 83-1647205
Seller General Partner | Greystone Meridian Capital LLC, a Delaware LLC
Seller Address | 3300 Peachtree Road NE, Suite 2200, Atlanta, GA 30326
Seller's Counsel | Blackridge Hayes LLP — Nathaniel Pryce
Buyer | Fairwater Real Estate Investment Trust, a Maryland real estate investment trust
Buyer EIN | 52-2198437
Buyer Address | 7200 Chesapeake Parkway, Suite 1100, Columbia, MD 21044
Buyer's Counsel | Calderwood & Harkness LLP — Douglas Fairchild
Escrow / Title Agent | Commonwealth National Title Insurance Company
Escrow Agent Address | 191 Peachtree Street NE, Suite 800, Atlanta, GA 30303
Title Officer | Kenneth Stanhope, SVP
Transaction Description | Entity-level acquisition of 100% membership interests in 14 property-owning Delaware LLCs comprising a Sun Belt logistics and office portfolio
Governing Agreement | Purchase and Sale Agreement dated February 28, 2024, as amended by First Amendment dated April 12, 2024, and Second Amendment dated May 28, 2024
Number of Target Entities | 14
Number of Properties | 14
States | Georgia, Texas, Florida, Tennessee, North Carolina
Total Portfolio RSF | 5,224,000 SF
[sheet: Settlement Statement]
Line # | Description | Reference / Notes | Debit — Charges to Seller | Credit — Due to Seller
SECTION A: PURCHASE PRICE & CONSIDERATION
1 | Contract Purchase Price | PSA §3.1 | $1,100,000,000.00
2 | Less: PCA Repair Credit to Buyer | PSA First Amendment; 50% of $2,140,000 aggregate PCA repair estimate | $1,070,000.00
3 | Adjusted Purchase Price | Line 1 minus Line 2 | $1,098,930,000.00
SECTION B: SATISFACTION OF ADJUSTED PURCHASE PRICE
4 | Assumption of Existing Mortgage Debt — Pinnacle Federal Bank, N.A. (Loans 1-A through 1-H) | Master Loan Agreement dtd 9/15/2020; OPB as of 2/28/2024; 4.22% fixed; matures 7/1/2028 | $421,600,000.00
5 | Assumption of Existing Mortgage Debt — Veltrano Capital Lending Corp. (Loans 2-A through 2-D) | Loan Agreement dtd 2/1/2021; OPB as of 2/28/2024; 4.68% fixed; matures 3/1/2029 | $142,300,000.00
6 | Assumption of Existing Mortgage Debt — Sycamore Life Insurance Company (Loans 3-A and 3-B) | Note Purchase Agreement dtd 11/22/2019; OPB as of 2/28/2024; 3.95% fixed; matures 12/1/2030 | $48,100,000.00
7 | Total Assumed Debt | Sum of Lines 4-6 | $612,000,000.00
8 | Cash Equity Due at Closing (before adjustments) | Line 3 minus Line 7 | $486,930,000.00
SECTION C: EARNEST MONEY DEPOSITS (Applied to Cash Equity)
9 | Initial Earnest Money Deposit (deposited 3/1/2024) | Held by Commonwealth National Title; 2.5% of $1,100,000,000 | $27,500,000.00
10 | Additional Deposit — Hard (deposited 4/16/2024) | Held by Commonwealth National Title | $27,500,000.00
11 | Total Deposits Applied | Sum of Lines 9-10; released to Seller at closing | $55,000,000.00
SECTION D: PRORATIONS (Preliminary — Subject to 90-Day True-Up per PSA Exhibit U)
12 | Real Property Taxes — 2024 (Seller's share: 1/1/2024 through 6/5/2024 = 157 days) | Est. annual: $14,760,000; Seller's share: $14,760,000 × (157/366) = $6,332,950.82 | $6,332,950.82
13 | Prepaid Rent — June 2024 (Seller collected; Buyer entitled to 6/6-6/30 portion) | 25 days of June prorated across portfolio | $1,287,431.69
14 | CAM / Operating Expense Recoveries — Reconciliation Reserve | Estimated holdback pending tenant year-end reconciliation | $1,850,000.00
15 | Utility Charges — Seller's share through 6/5/2024 | Estimated; subject to final meter reads | $143,612.00
16 | Insurance Premium Proration (existing policies terminated at closing) | No proration — existing policies terminated; Buyer binds new policies with Ironclad Indemnity Insurance Company | $0.00 | $0.00
17 | Net Proration Adjustment (Preliminary) | Sum of proration debits minus credits; net charge to Seller | $9,613,994.51
SECTION E: TENANT SECURITY DEPOSITS
18 | Aggregate Tenant Security Deposits Transferred to Buyer | 87 leases; held in Target Entity bank accounts at Magnolia Commerce Bank, N.A. | $4,283,000.00
SECTION F: SELLER'S CLOSING COSTS
19 | Transfer Taxes — Seller's Share (50%) | Total est. $3,850,000 × 50% | $1,925,000.00
20 | Transfer Tax — Georgia (4 properties: Fairfield I, Fairfield II, Buckhead Place, Peachtree Corners) | Seller's 50% share of ~$1,250,000 | $625,000.00
21 | Transfer Tax — Texas (3 properties: Westlake, Katy, Alliance) | No state transfer tax; nominal local fees | $0.00
22 | Transfer Tax — Florida (3 properties: Lakeland, Southport, Brickell Bay) | Documentary stamp tax; Seller's 50% share of ~$1,680,000 | $840,000.00
23 | Transfer Tax — Tennessee (3 properties: Murfreesboro, Cool Springs, Mount Juliet) | Seller's 50% share of ~$740,000 | $370,000.00
24 | Transfer Tax — North Carolina (1 property: SouthPark) | Seller's 50% share of ~$180,000 | $90,000.00
25 | Lender Consent Fee — Pinnacle Federal Bank (Seller's 50% share) | $421,600,000 × 0.25% = $1,054,000 × 50% | $527,000.00
26 | Lender Consent Fee — Veltrano Capital (Seller's 50% share) | $142,300,000 × 0.50% = $711,500 × 50% | $355,750.00
27 | Lender Consent Fee — Sycamore Life Insurance (Seller's 50% share) | $48,100,000 × 0.125% = $60,125 × 50% | $30,062.50
28 | Total Seller's Consent Fee Share | Sum of Lines 25-27 | $912,812.50
29 | Seller's Legal Fees — Blackridge Hayes LLP | Seller's responsibility; not charged through this statement | $0.00
30 | Seller's Accounting Fees — Caldwell Murray & Oakes LLP | Seller's responsibility; not charged through this statement | $0.00
SECTION G: ESCROWS & HOLDBACKS
31 | Indemnity Escrow — Deposited with Commonwealth National Title | 1.5% of Purchase Price; 18-month term; release after 12/6/2025 if no pending claims | $16,500,000.00
32 | SNDA Post-Closing Holdback (4 outstanding Major Tenant SNDAs) | Released to Seller upon delivery within 30 days post-closing | $200,000.00
33 | Total Escrows & Holdbacks | Sum of Lines 31-32 | $16,700,000.00
SECTION H: SUMMARY & NET PROCEEDS TO SELLER
34 | Adjusted Purchase Price (Cash Equity Portion) | Line 8 | $486,930,000.00
35 | Less: Net Proration Adjustment (Preliminary) | Line 17 | $9,613,994.51
36 | Less: Tenant Security Deposits Transferred | Line 18 | $4,283,000.00
37 | Less: Seller's Transfer Tax Share | Line 19 | $1,925,000.00
38 | Less: Seller's Consent Fee Share | Line 28 | $912,812.50
39 | Less: Indemnity Escrow | Line 31 | $16,500,000.00
40 | Less: SNDA Post-Closing Holdback | Line 32 | $200,000.00
41 | NET CASH PROCEEDS TO SELLER (Preliminary — Subject to 90-Day True-Up) | Line 34 minus Lines 35-40 | $453,495,192.99
SECTION I: ADDITIONAL AMOUNTS RECEIVED BY SELLER (Via Debt Assumption)
42 | Total Value of Assumed Debt (credited to Seller) | Line 7 | $612,000,000.00
43 | TOTAL CONSIDERATION RECEIVED BY SELLER | Line 41 + Line 42 + Line 33 (escrows to be released) + Line 18 (security deposits in-entity) | $1,098,930,000.00
[sheet: Wire Instructions]
Field | Value
Beneficiary Name | Greystone Meridian Partners Fund III, L.P.
Beneficiary Account Number | [Account Number]
Receiving Bank | Magnolia Commerce Bank, N.A.
Receiving Bank Address | 225 Peachtree Street NE, Suite 100, Atlanta, GA 30303
ABA / Routing Number | [Routing Number]
SWIFT Code | [SWIFT Code — if applicable for international participants]
Bank Contact | Linda Prescott, VP, Commercial Banking
Bank Contact Phone | [Phone Number]
Reference | Fairwater / GMP Fund III Portfolio Closing — June 6, 2024
Wire Amount | Per Line 41 of Settlement Statement — $453,495,192.99
[sheet: Assumed Debt Detail]
Lender | Loan Designation | Property Secured | Target Entity | Loan Agreement Date | OPB as of 2/28/2024 | Interest Rate | Maturity Date | Consent Fee Rate | Consent Fee ($) | Seller's 50% Share | Consent Received
Pinnacle Federal Bank, N.A. | 1-A | Fairfield Logistics Center I | GMP Fairfield I LLC | 9/15/2020 | $58,200,000.00 | 4.22% | 7/1/2028 | 0.25% | $145,500.00 | $72,750.00 | 6/4/2024
Pinnacle Federal Bank, N.A. | 1-B | Fairfield Logistics Center II | GMP Fairfield II LLC | 9/15/2020 | $54,400,000.00 | 4.22% | 7/1/2028 | 0.25% | $136,000.00 | $68,000.00 | 6/4/2024
Pinnacle Federal Bank, N.A. | 1-C | Westlake Distribution Hub | GMP Westlake LLC | 9/15/2020 | $72,500,000.00 | 4.22% | 7/1/2028 | 0.25% | $181,250.00 | $90,625.00 | 6/4/2024
Pinnacle Federal Bank, N.A. | 1-D | Katy Freeway Logistics Park | GMP Katy LLC | 9/15/2020 | $61,800,000.00 | 4.22% | 7/1/2028 | 0.25% | $154,500.00 | $77,250.00 | 6/4/2024
Pinnacle Federal Bank, N.A. | 1-E | Alliance Commerce Center | GMP Alliance LLC | 9/15/2020 | $55,300,000.00 | 4.22% | 7/1/2028 | 0.25% | $138,250.00 | $69,125.00 | 6/4/2024
Pinnacle Federal Bank, N.A. | 1-F | Lakeland Crossings Industrial | GMP Lakeland LLC | 9/15/2020 | $42,600,000.00 | 4.22% | 7/1/2028 | 0.25% | $106,500.00 | $53,250.00 | 6/4/2024
Pinnacle Federal Bank, N.A. | 1-G | Southport Logistics Park | GMP Southport LLC | 9/15/2020 | $46,200,000.00 | 4.22% | 7/1/2028 | 0.25% | $115,500.00 | $57,750.00 | 6/4/2024
Pinnacle Federal Bank, N.A. | 1-H | Murfreesboro Distribution Center | GMP Murfreesboro LLC | 9/15/2020 | $30,600,000.00 | 4.22% | 7/1/2028 | 0.25% | $76,500.00 | $38,250.00 | 6/4/2024
SUBTOTAL — Pinnacle Federal Bank, N.A. | $421,600,000.00 | 0.25% | $1,054,000.00 | $527,000.00
Veltrano Capital Lending Corp. | 2-A | Buckhead Place Office Tower | GMP Buckhead LLC | 2/1/2021 | $48,500,000.00 | 4.68% | 3/1/2029 | 0.50% | $242,500.00 | $121,250.00 | 5/17/2024
Veltrano Capital Lending Corp. | 2-B | SouthPark Corporate Center | GMP SouthPark LLC | 2/1/2021 | $36,200,000.00 | 4.68% | 3/1/2029 | 0.50% | $181,000.00 | $90,500.00 | 5/17/2024
Veltrano Capital Lending Corp. | 2-C | Cool Springs Office Park | GMP Cool Springs LLC | 2/1/2021 | $31,400,000.00 | 4.68% | 3/1/2029 | 0.50% | $157,000.00 | $78,500.00 | 5/17/2024
Veltrano Capital Lending Corp. | 2-D | Brickell Bay Office Building | GMP Brickell LLC | 2/1/2021 | $26,200,000.00 | 4.68% | 3/1/2029 | 0.50% | $131,000.00 | $65,500.00 | 5/17/2024
SUBTOTAL — Veltrano Capital Lending Corp. | $142,300,000.00 | 0.50% | $711,500.00 | $355,750.00
Sycamore Life Insurance Company | 3-A | Peachtree Corners Logistics Center | GMP Peachtree LLC | 11/22/2019 | $28,500,000.00 | 3.95% | 12/1/2030 | 0.125% | $35,625.00 | $17,812.50 | 5/22/2024
Sycamore Life Insurance Company | 3-B | Mount Juliet Commerce Park | GMP Mount Juliet LLC | 11/22/2019 | $19,600,000.00 | 3.95% | 12/1/2030 | 0.125% | $24,500.00 | $12,250.00 | 5/22/2024
SUBTOTAL — Sycamore Life Insurance Company | $48,100,000.00 | 0.125% | $60,125.00 | $30,062.50
GRAND TOTAL — ALL LENDERS | $612,000,000.00 | $1,825,625.00 | $912,812.50
[sheet: Transfer Tax Detail]
State | Property / Properties | Target Entity | Estimated Transfer Tax — Total | Seller's 50% Share | Notes
Georgia | Fairfield Logistics Center I; Fairfield Logistics Center II; Buckhead Place Office Tower; Peachtree Corners Logistics Center | GMP Fairfield I LLC; GMP Fairfield II LLC; GMP Buckhead LLC; GMP Peachtree LLC | $1,250,000.00 | $625,000.00 | Controlling-interest transfer tax; filings coordinated by Talmadge Beaumont LLP
Texas | Westlake Distribution Hub; Katy Freeway Logistics Park; Alliance Commerce Center | GMP Westlake LLC; GMP Katy LLC; GMP Alliance LLC | $0.00 | $0.00 | No state transfer tax; nominal local recording fees only; Breckenridge Osgood LLP
Florida | Lakeland Crossings Industrial; Southport Logistics Park; Brickell Bay Office Building | GMP Lakeland LLC; GMP Southport LLC; GMP Brickell LLC | $1,680,000.00 | $840,000.00 | Documentary stamp tax on deemed consideration; Palmetto Strauss PA
Tennessee | Murfreesboro Distribution Center; Cool Springs Office Park; Mount Juliet Commerce Park | GMP Murfreesboro LLC; GMP Cool Springs LLC; GMP Mount Juliet LLC | $740,000.00 | $370,000.00 | Controlling-interest transfer tax; Ellsworth Ridley LLP
North Carolina | SouthPark Corporate Center | GMP SouthPark LLC | $180,000.00 | $90,000.00 | Excise tax on controlling-interest transfer; Haversham Cole PLLC
TOTAL | $3,850,000.00 | $1,925,000.00 | Split 50/50 per PSA §12.4
[sheet: Proration Detail]
Line | Proration Item | Annual / Period Amount | Seller's Period | Days / Fraction | Seller's Share | Credit To | Notes
1 | Real Property Taxes — 2024 Estimated | $14,760,000.00 | 1/1/2024 – 6/5/2024 | 157/366 | $6,332,950.82 | Buyer (debit to Seller) | Based on 2024 estimated tax bills; subject to true-up upon receipt of actual bills
2 | Prepaid Rent — June 2024 (collected by Seller; Buyer entitled to 6/6–6/30 portion) | June base rent collections across portfolio | Buyer entitled: 6/6 – 6/30 (25 days) | 25/30 of June rent | $1,287,431.69 | Buyer (debit to Seller) | Seller collected full June rent; owes Buyer pro rata share from proration date
3 | CAM / Operating Expense Reconciliation Reserve | $1,850,000.00 | Holdback | Lump sum | $1,850,000.00 | Reserve | Estimated holdback pending tenant year-end CAM/OpEx reconciliation
4 | Utility Charges — Seller's share through 6/5/2024 | Estimated | 1/1/2024 – 6/5/2024 | Estimated | $143,612.00 | Buyer (debit to Seller) | Subject to final meter reads and adjustment at true-up
5 | Insurance Premiums | $0.00 | N/A | N/A | $0.00 | N/A | Existing policies terminated at closing; Buyer binds new policies with Ironclad Indemnity Insurance Company
TOTAL NET PRORATION ADJUSTMENT (Preliminary) | $9,613,994.51 | Net debit to Seller | Subject to 90-day post-closing true-up per PSA Exhibit U; true-up deadline September 4, 2024
NOTE: Post-closing true-up final amount: $347,218 net credit to Buyer (agreed August 28, 2024; paid by Seller September 5, 2024) — noted as future adjustment reference