FR EA
1036-00004 · Client 1036 · Closing
pre-closing-checklist.xlsx DOCUMENT Real Estate
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Contract analysis Extract to table

[sheet: Cover & Summary]

FieldValue
Matter NameFairwater Real Estate Investment Trust — Acquisition of 14-Property Sun Belt Portfolio from Greystone Meridian Partners Fund III, L.P.
Matter Number1036-00004
BuyerFairwater Real Estate Investment Trust
SellerGreystone Meridian Partners Fund III, L.P.
Buyer's CounselCalderwood & Harkness LLP
Seller's CounselBlackridge 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 DateFebruary 28, 2024
Scheduled Closing DateMay 31, 2024
Extended Closing Date (per Second Amendment)June 7, 2024
Actual Closing DateJune 6, 2024
Closing Delay ReasonPending final Pinnacle Federal Bank lender consent; received June 4, 2024
Number of Target Entities14
Number of Properties14
StatesGeorgia (4), Texas (3), Florida (3), Tennessee (3), North Carolina (1)
Total Leases87
Responsible PartnerDouglas Fairchild (C&H, New York)
Billing PartnerAngela Fontaine (C&H, New York)
Lead AssociateGrace Nakamura (C&H, New York)
Working AssociateRafael Dominguez (C&H, Washington, DC)
Tax PartnerSylvia Hartwell (C&H, Washington, DC)
Title Company / Escrow AgentCommonwealth National Title Insurance Company
Title OfficerKenneth Stanhope, SVP
Prepared ByGrace Nakamura
Last UpdatedJune 5, 2024

[sheet: PSA & Amendments]

Item #Document / DeliverableDescriptionResponsible PartyDue DateStatusDate CompletedNotes
1Purchase and Sale Agreement — Execution VersionPSA dated February 28, 2024, between GMP Fund III (Seller) and Fairwater REIT (Buyer); NY governing law; 87 pages + exhibits and schedulesC&H / Blackridge Hayes LLP2/28/2024Executed2/28/202422 exhibits (A-V); 14+ schedules
2PSA — Exhibit A: Legal Descriptions (14 Properties)Metes-and-bounds / plat descriptions for each property in GA, TX, FL, TN, NCC&H / Local Counsel2/28/2024Executed2/28/2024Attached to PSA
3PSA — Exhibit B: Form of Assignment and Assumption of Membership InterestsForm for transfer of 100% membership interests in each of 14 Target EntitiesC&H2/28/2024Executed2/28/2024
4PSA — Exhibit C: Form of Seller's Closing CertificateBring-down of Seller representations and warrantiesBlackridge Hayes LLP2/28/2024Executed2/28/2024
5PSA — Exhibit D: Form of Buyer's Closing CertificateBring-down of Buyer representations and warrantiesC&H2/28/2024Executed2/28/2024
6PSA — Exhibit E: Form of Tenant Estoppel CertificateStandard estoppel form for each of 87 leasesC&H2/28/2024Executed2/28/2024
7PSA — Exhibit F: Form of SNDASubordination, Non-Disturbance and Attornment Agreement form for Major Tenants (ABR ≥ $1,500,000 p.a.)C&H2/28/2024Executed2/28/2024
8PSA — Exhibit G: Form of Escrow AgreementEscrow for $27,500,000 EMD and $16,500,000 Indemnity Escrow with Commonwealth National TitleC&H / Commonwealth Title2/28/2024Executed2/28/2024
9PSA — Exhibit H: Rent Roll (as of 12/31/2023)87-lease rent roll; $74,800,000 annual in-place base rent; 93.2% occupancySeller / Blackridge Hayes LLP2/28/2024Executed2/28/2024
10PSA — Exhibit I: List of Service Contracts63 property-level service contracts across 14 propertiesSeller / Blackridge Hayes LLP2/28/2024Executed2/28/2024
11PSA — Exhibit J: List of Pending LitigationDisclosure of pending/threatened litigationSeller / Blackridge Hayes LLP2/28/2024Executed2/28/2024
12PSA — Exhibit K: Purchase Price Allocation ScheduleAllocation of $1,100,000,000 per appraised values from Stonebridge Valuation Advisors, LLCC&H / Blackridge Hayes LLP2/28/2024Executed2/28/2024Section 1060 methodology
13PSA — Exhibit L: Form of Transition Services Agreement90-day TSA between Argyle Property Services LLC and Fairwater PM; $375,000/monthC&H2/28/2024Executed2/28/2024Total fee: $1,125,000
14PSA — Exhibit M: Insurance RequirementsCoverages required of Buyer at/prior to closing; Ironclad Indemnity Insurance CompanyC&H2/28/2024Executed2/28/2024
15PSA — Exhibit N: Environmental Reports ListPhase I ESAs by Trident Environmental Group LLC for all 14 propertiesC&H2/28/2024Executed2/28/2024
16PSA — Exhibit O: Form of FIRPTA CertificateNon-foreign person affidavit for SellerC&H2/28/2024Executed2/28/2024
17PSA — Exhibit P: Permitted ExceptionsSchedule of permitted title exceptions per propertyC&H / Blackridge Hayes LLP2/28/2024Executed2/28/2024
18PSA — Exhibit Q: Assumed Loan Documents ListComplete list of loan docs for Pinnacle, Veltrano, Sycamore facilities ($612M aggregate)C&H2/28/2024Executed2/28/2024
19PSA — Exhibit R: Form of Lender Consent LetterTemplate consent letter for change of control approvalC&H2/28/2024Executed2/28/2024
20PSA — Exhibit S: Form of Replacement GuarantyReplacement carve-out guaranty; Fairwater as guarantor; $500M min net worth / $50M min liquidityC&H2/28/2024Executed2/28/2024
21PSA — Exhibit T: Form of Title Affidavit (Seller)Owner's affidavit for Commonwealth National TitleC&H2/28/2024Executed2/28/2024
22PSA — Exhibit U: Proration and Working-Capital MethodologyMethodology for prorations: RE taxes ($14,760,000 annual est.), CAM/OpEx ($1,850,000 reserve), security deposits ($4,283,000)C&H / Blackridge Hayes LLP2/28/2024Executed2/28/2024
23PSA — Exhibit V: Form of Post-Closing Proration True-Up StatementTemplate for 90-day true-up; deadline September 4, 2024C&H2/28/2024Executed2/28/2024
24PSA — Schedule 1: Disclosure Schedules (General)Seller disclosure schedules covering reps/warranties exceptionsSeller / Blackridge Hayes LLP2/28/2024Executed2/28/2024Knowledge individuals: Victor Lansdell, Elise Rathborne, Sean Kilpatrick
25PSA — Schedules 2-1 through 2-14: Property-Specific Disclosure SchedulesIndividual schedules for each Target Entity / propertySeller / Blackridge Hayes LLP2/28/2024Executed2/28/2024
26PSA — First AmendmentDated April 12, 2024; extended estoppel delivery deadline from May 10 to May 15, 2024; clarified PCA credit ($1,070,000) mechanicsC&H / Blackridge Hayes LLP4/12/2024Executed4/12/2024
27PSA — Second AmendmentDated May 28, 2024; extended closing date from May 31 to June 7, 2024 to accommodate Pinnacle lender consent delayC&H / Blackridge Hayes LLP5/28/2024Executed5/28/2024

[sheet: Deposits & Escrow]

Item #Document / DeliverableDescriptionAmountResponsible PartyDue DateStatusDate CompletedNotes
1Earnest Money Deposit WireInitial EMD to Commonwealth National Title escrow; 2.5% of Purchase Price$27,500,000Buyer (Fairwater REIT)3/1/2024Completed3/1/2024Wired to Commonwealth National Title, 191 Peachtree St NE, Ste 800, Atlanta, GA
2Escrow Agreement — Earnest Money DepositExecuted escrow agreement with Commonwealth National Title as escrow agentC&H / Commonwealth Title3/1/2024Executed3/1/2024Kenneth Stanhope, SVP, title officer
3Additional Deposit (Hard) WireAdditional deposit due upon expiration of Due Diligence Period (April 15, 2024)$27,500,000Buyer (Fairwater REIT)4/16/2024Completed4/16/2024Total deposits now $55,000,000
4Indemnity Escrow Agreement$16,500,000 indemnity escrow (1.5% of Purchase Price); 18-month term; held by Commonwealth National Title$16,500,000C&H / Blackridge Hayes LLP / Commonwealth Title6/6/2024Executed6/6/2024Release after December 6, 2025 if no pending claims
5Indemnity Escrow Funding WireWire of $16,500,000 to Commonwealth National Title indemnity escrow account$16,500,000Buyer (Fairwater REIT)6/6/2024Completed6/6/2024
6EMD Escrow Release InstructionsInstructions for release of $55,000,000 aggregate deposits at closing, credited to purchase price$55,000,000C&H / Commonwealth Title6/6/2024Completed6/6/2024

[sheet: Lender Consents & Assumptions]

Item #Document / DeliverableLenderLender CounselLoans CoveredOutstanding Principal BalanceConsent FeeFee SplitResponsible PartyDue DateStatusDate CompletedNotes
1Consent 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)$421,600,000C&H3/8/2024Sent3/8/2024Master Loan Agreement dated 9/15/2020; 4.22% fixed; maturity 7/1/2028
2Consent Request Letter — Veltrano Capital Lending Corp.Veltrano Capital Lending Corp.Cranford McCabe LLP (Leo Cranford)Loans 2-A through 2-D (4 office properties)$142,300,000C&H3/8/2024Sent3/8/2024Loan Agreement dated 2/1/2021; 4.68% fixed; maturity 3/1/2029
3Consent Request Letter — Sycamore Life Insurance CompanySycamore Life Insurance CompanyPartridge Wynn & Slater LLP (Claire Wynn)Loans 3-A and 3-B (2 logistics properties)$48,100,000C&H3/8/2024Sent3/8/2024Note Purchase Agreement dated 11/22/2019; 3.95% fixed; maturity 12/1/2030
4Replacement Guaranty — Pinnacle Loans (Execution Version)Pinnacle Federal Bank, N.A.Whitfield & Archer LLPLoans 1-A through 1-H$421,600,000C&H / Buyer5/24/2024Executed6/4/2024Fairwater REIT replaces GMP Fund III; min tangible net worth $500M; min liquid assets $50M
5Replacement Guaranty — Veltrano Loans (Execution Version)Veltrano Capital Lending Corp.Cranford McCabe LLPLoans 2-A through 2-D$142,300,000C&H / Buyer5/24/2024Executed5/17/2024Same financial covenants
6Replacement Guaranty — Sycamore Loans (Execution Version)Sycamore Life Insurance CompanyPartridge Wynn & Slater LLPLoans 3-A and 3-B$48,100,000C&H / Buyer5/24/2024Executed5/22/2024Same financial covenants
7Lender Consent — Veltrano Capital (Executed)Veltrano Capital Lending Corp.Cranford McCabe LLPLoans 2-A through 2-D$142,300,000$711,50050/50 ($355,750 each)Seller / Blackridge Hayes LLP5/24/2024Executed5/17/20240.50% of OPB
8Lender Consent — Sycamore Life Insurance (Executed)Sycamore Life Insurance CompanyPartridge Wynn & Slater LLPLoans 3-A and 3-B$48,100,000$60,12550/50 ($30,062.50 each)Seller / Blackridge Hayes LLP5/24/2024Executed5/22/20240.125% of OPB
9Lender Consent — Pinnacle Federal Bank (Executed)Pinnacle Federal Bank, N.A.Whitfield & Archer LLPLoans 1-A through 1-H$421,600,000$1,054,00050/50 ($527,000 each)Seller / Blackridge Hayes LLP5/24/2024Executed6/4/20240.25% of OPB; final consent — caused closing delay from 5/31 to 6/6
10Assumption Agreement — Pinnacle Loans (Execution Version)Pinnacle Federal Bank, N.A.Whitfield & Archer LLPLoans 1-A through 1-H$421,600,000C&H / Buyer6/6/2024Executed6/6/2024Fairwater assumes all borrower obligations
11Assumption Agreement — Veltrano Loans (Execution Version)Veltrano Capital Lending Corp.Cranford McCabe LLPLoans 2-A through 2-D$142,300,000C&H / Buyer6/6/2024Executed6/6/2024
12Assumption Agreement — Sycamore Loans (Execution Version)Sycamore Life Insurance CompanyPartridge Wynn & Slater LLPLoans 3-A and 3-B$48,100,000C&H / Buyer6/6/2024Executed6/6/2024
13Consent Fee Wire — Pinnacle Federal BankPinnacle Federal Bank, N.A.$1,054,000Buyer share: $527,000; Seller share: $527,000Buyer & Seller6/6/2024Completed6/6/2024
14Consent Fee Wire — Veltrano CapitalVeltrano Capital Lending Corp.$711,500Buyer share: $355,750; Seller share: $355,750Buyer & Seller6/6/2024Completed6/6/2024
15Consent Fee Wire — Sycamore Life InsuranceSycamore Life Insurance Company$60,125Buyer share: $30,062.50; Seller share: $30,062.50Buyer & Seller6/6/2024Completed6/6/2024
16Consent Fee Wire Instructions & Confirmation MemoAll Lenders$1,825,625Total Buyer share: $912,812.50; Total Seller share: $912,812.50C&H6/6/2024Completed6/6/2024

[sheet: Assignment of Membership Intere]

Item #Target EntityEINProperty NameProperty AddressStateProperty TypeRSFLoanResponsible PartyStatusDate ExecutedNotes
1GMP Fairfield I LLC84-2310561Fairfield Logistics Center I4200 Fairfield Industrial Blvd, Fairburn, GA 30213GeorgiaLogistics4120001-A (Pinnacle)C&H / Blackridge Hayes LLPExecuted6/6/2024
2GMP Fairfield II LLC84-2310578Fairfield Logistics Center II4300 Fairfield Industrial Blvd, Fairburn, GA 30213GeorgiaLogistics3870001-B (Pinnacle)C&H / Blackridge Hayes LLPExecuted6/6/2024
3GMP Westlake LLC84-2415693Westlake Distribution Hub11500 Westlake Parkway, Houston, TX 77082TexasLogistics6240001-C (Pinnacle)C&H / Blackridge Hayes LLPExecuted6/6/2024De minimis REC on Phase I ESA
4GMP Katy LLC84-2415710Katy Freeway Logistics Park22600 Katy Freeway, Katy, TX 77449TexasLogistics5380001-D (Pinnacle)C&H / Blackridge Hayes LLPExecuted6/6/2024
5GMP Alliance LLC84-2415728Alliance Commerce Center2800 Alliance Gateway Blvd, Fort Worth, TX 76177TexasLogistics4850001-E (Pinnacle)C&H / Blackridge Hayes LLPExecuted6/6/2024
6GMP Lakeland LLC84-2527834Lakeland Crossings Industrial7100 Drane Field Road, Lakeland, FL 33811FloridaLogistics3720001-F (Pinnacle)C&H / Blackridge Hayes LLPExecuted6/6/2024De minimis REC on Phase I ESA; PCA immediate repairs $380,000
7GMP Southport LLC84-2527849Southport Logistics Park3200 Southport Connector Road, Jacksonville, FL 32218FloridaLogistics4100001-G (Pinnacle)C&H / Blackridge Hayes LLPExecuted6/6/2024
8GMP Murfreesboro LLC84-2527856Murfreesboro Distribution Center1600 Joe B. Jackson Parkway, Murfreesboro, TN 37127TennesseeLogistics5020001-H (Pinnacle)C&H / Blackridge Hayes LLPExecuted6/6/2024
9GMP Buckhead LLC84-2639901Buckhead Place Office Tower3380 Peachtree Road NE, Atlanta, GA 30326GeorgiaOffice2850002-A (Veltrano)C&H / Blackridge Hayes LLPExecuted6/6/2024PCA immediate repairs $890,000
10GMP SouthPark LLC84-2639918SouthPark Corporate Center6200 Fairview Road, Charlotte, NC 28210North CarolinaOffice2180002-B (Veltrano)C&H / Blackridge Hayes LLPExecuted6/6/2024PCA immediate repairs $250,000
11GMP Cool Springs LLC84-2639925Cool Springs Office Park5000 Virginia Way, Brentwood, TN 37027TennesseeOffice1960002-C (Veltrano)C&H / Blackridge Hayes LLPExecuted6/6/2024PCA immediate repairs $620,000
12GMP Brickell LLC84-2639932Brickell Bay Office Building1450 Brickell Avenue, Miami, FL 33131FloridaOffice1520002-D (Veltrano)C&H / Blackridge Hayes LLPExecuted6/6/2024
13GMP Peachtree LLC84-2741063Peachtree Corners Logistics Center5900 Peachtree Industrial Blvd, Peachtree Corners, GA 30071GeorgiaLogistics3450003-A (Sycamore)C&H / Blackridge Hayes LLPExecuted6/6/2024
14GMP Mount Juliet LLC84-2741070Mount Juliet Commerce Park400 South Mount Juliet Road, Mount Juliet, TN 37122TennesseeLogistics2980003-B (Sycamore)C&H / Blackridge Hayes LLPExecuted6/6/2024

[sheet: Closing Certificates & Authorit]

Item #Document / DeliverableDescriptionResponsible PartySignatoryDue DateStatusDate CompletedNotes
1Seller's Closing CertificateBring-down of Seller reps and warranties to closing date per PSA Exhibit CSeller / Blackridge Hayes LLPVictor Lansdell (Greystone Meridian Capital LLC, as GP of GMP Fund III)6/6/2024Executed6/6/2024Seller EIN: 83-1647205
2Buyer's Closing CertificateBring-down of Buyer reps and warranties to closing date per PSA Exhibit DC&H / BuyerMarcus Devereaux (EVP, Acquisitions, Fairwater REIT)6/6/2024Executed6/6/2024Buyer EIN: 52-2198437
3FIRPTA Certificate (Seller)Non-foreign person affidavit executed by GMP Fund III (EIN 83-1647205); domestic partnership — FIRPTA withholding not requiredSeller / Blackridge Hayes LLPVictor Lansdell6/6/2024Executed6/6/2024Belt-and-suspenders; domestic LP
4Secretary's Certificate — SellerCertificate of Greystone Meridian Capital LLC (as GP) attaching resolutions authorizing the sale, incumbency, and organizational documentsSeller / Blackridge Hayes LLPElise Rathborne6/6/2024Executed6/6/2024GP EIN: 83-1520984
5Secretary's Certificate — BuyerCertificate of Fairwater REIT attaching board of trustees resolutions authorizing $1.1B acquisition and incumbency of signatoriesC&H / BuyerDavid Elgin Park (General Counsel)6/6/2024Executed6/6/2024