[sheet: Cover & Summary]
Field | Value
Matter Name | Fairwater Real Estate Investment Trust — Acquisition of 14-Property Sun Belt Portfolio from Greystone Meridian Partners Fund III, L.P.
Matter Number | 1036-00004
Buyer | Fairwater Real Estate Investment Trust
Seller | Greystone Meridian Partners Fund III, L.P.
Buyer's Counsel | Calderwood & Harkness LLP
Seller's Counsel | Blackridge Hayes LLP
Purchase Price | $1,100,000,000
Assumed Debt | $612,000,000
Cash Equity at Closing | $488,000,000
PCA Credit | $1,070,000
Adjusted Purchase Price (after PCA credit) | $1,098,930,000
PSA Execution Date | February 28, 2024
Scheduled Closing Date | May 31, 2024
Extended Closing Date (per Second Amendment) | June 7, 2024
Actual Closing Date | June 6, 2024
Closing Delay Reason | Pending final Pinnacle Federal Bank lender consent; received June 4, 2024
Number of Target Entities | 14
Number of Properties | 14
States | Georgia (4), Texas (3), Florida (3), Tennessee (3), North Carolina (1)
Total Leases | 87
Responsible Partner | Douglas Fairchild (C&H, New York)
Billing Partner | Angela Fontaine (C&H, New York)
Lead Associate | Grace Nakamura (C&H, New York)
Working Associate | Rafael Dominguez (C&H, Washington, DC)
Tax Partner | Sylvia Hartwell (C&H, Washington, DC)
Title Company / Escrow Agent | Commonwealth National Title Insurance Company
Title Officer | Kenneth Stanhope, SVP
Prepared By | Grace Nakamura
Last Updated | June 5, 2024
[sheet: PSA & Amendments]
Item # | Document / Deliverable | Description | Responsible Party | Due Date | Status | Date Completed | Notes
1 | Purchase and Sale Agreement — Execution Version | PSA dated February 28, 2024, between GMP Fund III (Seller) and Fairwater REIT (Buyer); NY governing law; 87 pages + exhibits and schedules | C&H / Blackridge Hayes LLP | 2/28/2024 | Executed | 2/28/2024 | 22 exhibits (A-V); 14+ schedules
2 | PSA — Exhibit A: Legal Descriptions (14 Properties) | Metes-and-bounds / plat descriptions for each property in GA, TX, FL, TN, NC | C&H / Local Counsel | 2/28/2024 | Executed | 2/28/2024 | Attached to PSA
3 | PSA — Exhibit B: Form of Assignment and Assumption of Membership Interests | Form for transfer of 100% membership interests in each of 14 Target Entities | C&H | 2/28/2024 | Executed | 2/28/2024
4 | PSA — Exhibit C: Form of Seller's Closing Certificate | Bring-down of Seller representations and warranties | Blackridge Hayes LLP | 2/28/2024 | Executed | 2/28/2024
5 | PSA — Exhibit D: Form of Buyer's Closing Certificate | Bring-down of Buyer representations and warranties | C&H | 2/28/2024 | Executed | 2/28/2024
6 | PSA — Exhibit E: Form of Tenant Estoppel Certificate | Standard estoppel form for each of 87 leases | C&H | 2/28/2024 | Executed | 2/28/2024
7 | PSA — Exhibit F: Form of SNDA | Subordination, Non-Disturbance and Attornment Agreement form for Major Tenants (ABR ≥ $1,500,000 p.a.) | C&H | 2/28/2024 | Executed | 2/28/2024
8 | PSA — Exhibit G: Form of Escrow Agreement | Escrow for $27,500,000 EMD and $16,500,000 Indemnity Escrow with Commonwealth National Title | C&H / Commonwealth Title | 2/28/2024 | Executed | 2/28/2024
9 | PSA — Exhibit H: Rent Roll (as of 12/31/2023) | 87-lease rent roll; $74,800,000 annual in-place base rent; 93.2% occupancy | Seller / Blackridge Hayes LLP | 2/28/2024 | Executed | 2/28/2024
10 | PSA — Exhibit I: List of Service Contracts | 63 property-level service contracts across 14 properties | Seller / Blackridge Hayes LLP | 2/28/2024 | Executed | 2/28/2024
11 | PSA — Exhibit J: List of Pending Litigation | Disclosure of pending/threatened litigation | Seller / Blackridge Hayes LLP | 2/28/2024 | Executed | 2/28/2024
12 | PSA — Exhibit K: Purchase Price Allocation Schedule | Allocation of $1,100,000,000 per appraised values from Stonebridge Valuation Advisors, LLC | C&H / Blackridge Hayes LLP | 2/28/2024 | Executed | 2/28/2024 | Section 1060 methodology
13 | PSA — Exhibit L: Form of Transition Services Agreement | 90-day TSA between Argyle Property Services LLC and Fairwater PM; $375,000/month | C&H | 2/28/2024 | Executed | 2/28/2024 | Total fee: $1,125,000
14 | PSA — Exhibit M: Insurance Requirements | Coverages required of Buyer at/prior to closing; Ironclad Indemnity Insurance Company | C&H | 2/28/2024 | Executed | 2/28/2024
15 | PSA — Exhibit N: Environmental Reports List | Phase I ESAs by Trident Environmental Group LLC for all 14 properties | C&H | 2/28/2024 | Executed | 2/28/2024
16 | PSA — Exhibit O: Form of FIRPTA Certificate | Non-foreign person affidavit for Seller | C&H | 2/28/2024 | Executed | 2/28/2024
17 | PSA — Exhibit P: Permitted Exceptions | Schedule of permitted title exceptions per property | C&H / Blackridge Hayes LLP | 2/28/2024 | Executed | 2/28/2024
18 | PSA — Exhibit Q: Assumed Loan Documents List | Complete list of loan docs for Pinnacle, Veltrano, Sycamore facilities ($612M aggregate) | C&H | 2/28/2024 | Executed | 2/28/2024
19 | PSA — Exhibit R: Form of Lender Consent Letter | Template consent letter for change of control approval | C&H | 2/28/2024 | Executed | 2/28/2024
20 | PSA — Exhibit S: Form of Replacement Guaranty | Replacement carve-out guaranty; Fairwater as guarantor; $500M min net worth / $50M min liquidity | C&H | 2/28/2024 | Executed | 2/28/2024
21 | PSA — Exhibit T: Form of Title Affidavit (Seller) | Owner's affidavit for Commonwealth National Title | C&H | 2/28/2024 | Executed | 2/28/2024
22 | PSA — Exhibit U: Proration and Working-Capital Methodology | Methodology for prorations: RE taxes ($14,760,000 annual est.), CAM/OpEx ($1,850,000 reserve), security deposits ($4,283,000) | C&H / Blackridge Hayes LLP | 2/28/2024 | Executed | 2/28/2024
23 | PSA — Exhibit V: Form of Post-Closing Proration True-Up Statement | Template for 90-day true-up; deadline September 4, 2024 | C&H | 2/28/2024 | Executed | 2/28/2024
24 | PSA — Schedule 1: Disclosure Schedules (General) | Seller disclosure schedules covering reps/warranties exceptions | Seller / Blackridge Hayes LLP | 2/28/2024 | Executed | 2/28/2024 | Knowledge individuals: Victor Lansdell, Elise Rathborne, Sean Kilpatrick
25 | PSA — Schedules 2-1 through 2-14: Property-Specific Disclosure Schedules | Individual schedules for each Target Entity / property | Seller / Blackridge Hayes LLP | 2/28/2024 | Executed | 2/28/2024
26 | PSA — First Amendment | Dated April 12, 2024; extended estoppel delivery deadline from May 10 to May 15, 2024; clarified PCA credit ($1,070,000) mechanics | C&H / Blackridge Hayes LLP | 4/12/2024 | Executed | 4/12/2024
27 | PSA — Second Amendment | Dated May 28, 2024; extended closing date from May 31 to June 7, 2024 to accommodate Pinnacle lender consent delay | C&H / Blackridge Hayes LLP | 5/28/2024 | Executed | 5/28/2024
[sheet: Deposits & Escrow]
Item # | Document / Deliverable | Description | Amount | Responsible Party | Due Date | Status | Date Completed | Notes
1 | Earnest Money Deposit Wire | Initial EMD to Commonwealth National Title escrow; 2.5% of Purchase Price | $27,500,000 | Buyer (Fairwater REIT) | 3/1/2024 | Completed | 3/1/2024 | Wired to Commonwealth National Title, 191 Peachtree St NE, Ste 800, Atlanta, GA
2 | Escrow Agreement — Earnest Money Deposit | Executed escrow agreement with Commonwealth National Title as escrow agent | C&H / Commonwealth Title | 3/1/2024 | Executed | 3/1/2024 | Kenneth Stanhope, SVP, title officer
3 | Additional Deposit (Hard) Wire | Additional deposit due upon expiration of Due Diligence Period (April 15, 2024) | $27,500,000 | Buyer (Fairwater REIT) | 4/16/2024 | Completed | 4/16/2024 | Total deposits now $55,000,000
4 | Indemnity Escrow Agreement | $16,500,000 indemnity escrow (1.5% of Purchase Price); 18-month term; held by Commonwealth National Title | $16,500,000 | C&H / Blackridge Hayes LLP / Commonwealth Title | 6/6/2024 | Executed | 6/6/2024 | Release after December 6, 2025 if no pending claims
5 | Indemnity Escrow Funding Wire | Wire of $16,500,000 to Commonwealth National Title indemnity escrow account | $16,500,000 | Buyer (Fairwater REIT) | 6/6/2024 | Completed | 6/6/2024
6 | EMD Escrow Release Instructions | Instructions for release of $55,000,000 aggregate deposits at closing, credited to purchase price | $55,000,000 | C&H / Commonwealth Title | 6/6/2024 | Completed | 6/6/2024
[sheet: Lender Consents & Assumptions]
Item # | Document / Deliverable | Lender | Lender Counsel | Loans Covered | Outstanding Principal Balance | Consent Fee | Fee Split | Responsible Party | Due Date | Status | Date Completed | Notes
1 | Consent Request Letter — Pinnacle Federal Bank, N.A. | Pinnacle Federal Bank, N.A. | Whitfield & Archer LLP (Sandra Whitfield) | Loans 1-A through 1-H (8 logistics properties) | $421,600,000 | C&H | 3/8/2024 | Sent | 3/8/2024 | Master Loan Agreement dated 9/15/2020; 4.22% fixed; maturity 7/1/2028
2 | Consent Request Letter — Veltrano Capital Lending Corp. | Veltrano Capital Lending Corp. | Cranford McCabe LLP (Leo Cranford) | Loans 2-A through 2-D (4 office properties) | $142,300,000 | C&H | 3/8/2024 | Sent | 3/8/2024 | Loan Agreement dated 2/1/2021; 4.68% fixed; maturity 3/1/2029
3 | Consent Request Letter — Sycamore Life Insurance Company | Sycamore Life Insurance Company | Partridge Wynn & Slater LLP (Claire Wynn) | Loans 3-A and 3-B (2 logistics properties) | $48,100,000 | C&H | 3/8/2024 | Sent | 3/8/2024 | Note Purchase Agreement dated 11/22/2019; 3.95% fixed; maturity 12/1/2030
4 | Replacement Guaranty — Pinnacle Loans (Execution Version) | Pinnacle Federal Bank, N.A. | Whitfield & Archer LLP | Loans 1-A through 1-H | $421,600,000 | C&H / Buyer | 5/24/2024 | Executed | 6/4/2024 | Fairwater REIT replaces GMP Fund III; min tangible net worth $500M; min liquid assets $50M
5 | Replacement Guaranty — Veltrano Loans (Execution Version) | Veltrano Capital Lending Corp. | Cranford McCabe LLP | Loans 2-A through 2-D | $142,300,000 | C&H / Buyer | 5/24/2024 | Executed | 5/17/2024 | Same financial covenants
6 | Replacement Guaranty — Sycamore Loans (Execution Version) | Sycamore Life Insurance Company | Partridge Wynn & Slater LLP | Loans 3-A and 3-B | $48,100,000 | C&H / Buyer | 5/24/2024 | Executed | 5/22/2024 | Same financial covenants
7 | Lender Consent — Veltrano Capital (Executed) | Veltrano Capital Lending Corp. | Cranford McCabe LLP | Loans 2-A through 2-D | $142,300,000 | $711,500 | 50/50 ($355,750 each) | Seller / Blackridge Hayes LLP | 5/24/2024 | Executed | 5/17/2024 | 0.50% of OPB
8 | Lender Consent — Sycamore Life Insurance (Executed) | Sycamore Life Insurance Company | Partridge Wynn & Slater LLP | Loans 3-A and 3-B | $48,100,000 | $60,125 | 50/50 ($30,062.50 each) | Seller / Blackridge Hayes LLP | 5/24/2024 | Executed | 5/22/2024 | 0.125% of OPB
9 | Lender Consent — Pinnacle Federal Bank (Executed) | Pinnacle Federal Bank, N.A. | Whitfield & Archer LLP | Loans 1-A through 1-H | $421,600,000 | $1,054,000 | 50/50 ($527,000 each) | Seller / Blackridge Hayes LLP | 5/24/2024 | Executed | 6/4/2024 | 0.25% of OPB; final consent — caused closing delay from 5/31 to 6/6
10 | Assumption Agreement — Pinnacle Loans (Execution Version) | Pinnacle Federal Bank, N.A. | Whitfield & Archer LLP | Loans 1-A through 1-H | $421,600,000 | C&H / Buyer | 6/6/2024 | Executed | 6/6/2024 | Fairwater assumes all borrower obligations
11 | Assumption Agreement — Veltrano Loans (Execution Version) | Veltrano Capital Lending Corp. | Cranford McCabe LLP | Loans 2-A through 2-D | $142,300,000 | C&H / Buyer | 6/6/2024 | Executed | 6/6/2024
12 | Assumption Agreement — Sycamore Loans (Execution Version) | Sycamore Life Insurance Company | Partridge Wynn & Slater LLP | Loans 3-A and 3-B | $48,100,000 | C&H / Buyer | 6/6/2024 | Executed | 6/6/2024
13 | Consent Fee Wire — Pinnacle Federal Bank | Pinnacle Federal Bank, N.A. | $1,054,000 | Buyer share: $527,000; Seller share: $527,000 | Buyer & Seller | 6/6/2024 | Completed | 6/6/2024
14 | Consent Fee Wire — Veltrano Capital | Veltrano Capital Lending Corp. | $711,500 | Buyer share: $355,750; Seller share: $355,750 | Buyer & Seller | 6/6/2024 | Completed | 6/6/2024
15 | Consent Fee Wire — Sycamore Life Insurance | Sycamore Life Insurance Company | $60,125 | Buyer share: $30,062.50; Seller share: $30,062.50 | Buyer & Seller | 6/6/2024 | Completed | 6/6/2024
16 | Consent Fee Wire Instructions & Confirmation Memo | All Lenders | $1,825,625 | Total Buyer share: $912,812.50; Total Seller share: $912,812.50 | C&H | 6/6/2024 | Completed | 6/6/2024
[sheet: Assignment of Membership Intere]
Item # | Target Entity | EIN | Property Name | Property Address | State | Property Type | RSF | Loan | Responsible Party | Status | Date Executed | Notes
1 | GMP Fairfield I LLC | 84-2310561 | Fairfield Logistics Center I | 4200 Fairfield Industrial Blvd, Fairburn, GA 30213 | Georgia | Logistics | 412000 | 1-A (Pinnacle) | C&H / Blackridge Hayes LLP | Executed | 6/6/2024
2 | GMP Fairfield II LLC | 84-2310578 | Fairfield Logistics Center II | 4300 Fairfield Industrial Blvd, Fairburn, GA 30213 | Georgia | Logistics | 387000 | 1-B (Pinnacle) | C&H / Blackridge Hayes LLP | Executed | 6/6/2024
3 | GMP Westlake LLC | 84-2415693 | Westlake Distribution Hub | 11500 Westlake Parkway, Houston, TX 77082 | Texas | Logistics | 624000 | 1-C (Pinnacle) | C&H / Blackridge Hayes LLP | Executed | 6/6/2024 | De minimis REC on Phase I ESA
4 | GMP Katy LLC | 84-2415710 | Katy Freeway Logistics Park | 22600 Katy Freeway, Katy, TX 77449 | Texas | Logistics | 538000 | 1-D (Pinnacle) | C&H / Blackridge Hayes LLP | Executed | 6/6/2024
5 | GMP Alliance LLC | 84-2415728 | Alliance Commerce Center | 2800 Alliance Gateway Blvd, Fort Worth, TX 76177 | Texas | Logistics | 485000 | 1-E (Pinnacle) | C&H / Blackridge Hayes LLP | Executed | 6/6/2024
6 | GMP Lakeland LLC | 84-2527834 | Lakeland Crossings Industrial | 7100 Drane Field Road, Lakeland, FL 33811 | Florida | Logistics | 372000 | 1-F (Pinnacle) | C&H / Blackridge Hayes LLP | Executed | 6/6/2024 | De minimis REC on Phase I ESA; PCA immediate repairs $380,000
7 | GMP Southport LLC | 84-2527849 | Southport Logistics Park | 3200 Southport Connector Road, Jacksonville, FL 32218 | Florida | Logistics | 410000 | 1-G (Pinnacle) | C&H / Blackridge Hayes LLP | Executed | 6/6/2024
8 | GMP Murfreesboro LLC | 84-2527856 | Murfreesboro Distribution Center | 1600 Joe B. Jackson Parkway, Murfreesboro, TN 37127 | Tennessee | Logistics | 502000 | 1-H (Pinnacle) | C&H / Blackridge Hayes LLP | Executed | 6/6/2024
9 | GMP Buckhead LLC | 84-2639901 | Buckhead Place Office Tower | 3380 Peachtree Road NE, Atlanta, GA 30326 | Georgia | Office | 285000 | 2-A (Veltrano) | C&H / Blackridge Hayes LLP | Executed | 6/6/2024 | PCA immediate repairs $890,000
10 | GMP SouthPark LLC | 84-2639918 | SouthPark Corporate Center | 6200 Fairview Road, Charlotte, NC 28210 | North Carolina | Office | 218000 | 2-B (Veltrano) | C&H / Blackridge Hayes LLP | Executed | 6/6/2024 | PCA immediate repairs $250,000
11 | GMP Cool Springs LLC | 84-2639925 | Cool Springs Office Park | 5000 Virginia Way, Brentwood, TN 37027 | Tennessee | Office | 196000 | 2-C (Veltrano) | C&H / Blackridge Hayes LLP | Executed | 6/6/2024 | PCA immediate repairs $620,000
12 | GMP Brickell LLC | 84-2639932 | Brickell Bay Office Building | 1450 Brickell Avenue, Miami, FL 33131 | Florida | Office | 152000 | 2-D (Veltrano) | C&H / Blackridge Hayes LLP | Executed | 6/6/2024
13 | GMP Peachtree LLC | 84-2741063 | Peachtree Corners Logistics Center | 5900 Peachtree Industrial Blvd, Peachtree Corners, GA 30071 | Georgia | Logistics | 345000 | 3-A (Sycamore) | C&H / Blackridge Hayes LLP | Executed | 6/6/2024
14 | GMP Mount Juliet LLC | 84-2741070 | Mount Juliet Commerce Park | 400 South Mount Juliet Road, Mount Juliet, TN 37122 | Tennessee | Logistics | 298000 | 3-B (Sycamore) | C&H / Blackridge Hayes LLP | Executed | 6/6/2024
[sheet: Closing Certificates & Authorit]
Item # | Document / Deliverable | Description | Responsible Party | Signatory | Due Date | Status | Date Completed | Notes
1 | Seller's Closing Certificate | Bring-down of Seller reps and warranties to closing date per PSA Exhibit C | Seller / Blackridge Hayes LLP | Victor Lansdell (Greystone Meridian Capital LLC, as GP of GMP Fund III) | 6/6/2024 | Executed | 6/6/2024 | Seller EIN: 83-1647205
2 | Buyer's Closing Certificate | Bring-down of Buyer reps and warranties to closing date per PSA Exhibit D | C&H / Buyer | Marcus Devereaux (EVP, Acquisitions, Fairwater REIT) | 6/6/2024 | Executed | 6/6/2024 | Buyer EIN: 52-2198437
3 | FIRPTA Certificate (Seller) | Non-foreign person affidavit executed by GMP Fund III (EIN 83-1647205); domestic partnership — FIRPTA withholding not required | Seller / Blackridge Hayes LLP | Victor Lansdell | 6/6/2024 | Executed | 6/6/2024 | Belt-and-suspenders; domestic LP
4 | Secretary's Certificate — Seller | Certificate of Greystone Meridian Capital LLC (as GP) attaching resolutions authorizing the sale, incumbency, and organizational documents | Seller / Blackridge Hayes LLP | Elise Rathborne | 6/6/2024 | Executed | 6/6/2024 | GP EIN: 83-1520984
5 | Secretary's Certificate — Buyer | Certificate of Fairwater REIT attaching board of trustees resolutions authorizing $1.1B acquisition and incumbency of signatories | C&H / Buyer | David Elgin Park (General Counsel) | 6/6/2024 | Executed | 6/6/2024