[sheet: Cover & Summary]

Field

MEMORANDUM

TO:	Angela Fontaine, Billing Partner — Calderwood & Harkness LLP
FROM:	Douglas Fairchild, Responsible Partner — Calderwood & Harkness LLP
DATE:	October 15, 2023
RE:	Budget & Fee Estimate — Fairwater REIT Acquisition of GMP Fund III 14-Property Sun Belt Portfolio
MATTER NUMBER:	1036-00004
CLIENT:	Fairwater Real Estate Investment Trust
CLIENT CONTACT:	David Elgin Park, General Counsel; Camille Oduya, In-House Real Estate Counsel
TRANSACTION:	$1,100,000,000 entity-level acquisition of 14 property-owning Delaware LLCs from Greystone Meridian Partners Fund III, L.P.
ENGAGEMENT LETTER DATE:	October 5, 2023
FEE CAP:	$2,800,000 (plus disbursements per engagement letter)
ESTIMATED DISBURSEMENTS:	$85,000 – $110,000 (travel, filing fees, courier, copying, database searches)
PROJECTED TOTAL FEES:	$2,720,000 (targeting ~$80,000 cushion below cap)
PROJECTED TOTAL HOURS:	~4,850 hours
BLENDED EFFECTIVE RATE:	~$561/hour ($2,720,000 ÷ 4,850)
ENGAGEMENT TEAM:	Douglas Fairchild (Responsible Partner); Angela Fontaine (Billing Partner); Grace Nakamura (Lead Associate); Rafael Dominguez (Working Associate); Sylvia Hartwell (Specialist Partner, Tax)
LOCAL COUNSEL (5 JURISDICTIONS):	Breckenridge Osgood LLP (TX); Talmadge Beaumont LLP (GA); Haversham Cole PLLC (NC); Ellsworth Ridley LLP (TN); Palmetto Strauss PA (FL)
NOTE:	Local counsel fees are separate from the C&H fee cap and will be billed directly to client or passed through as disbursements. Estimated aggregate local counsel fees: $280,000 – $340,000.
SCOPE OVERVIEW:	Transaction/PSA drafting & negotiation; due diligence (title, survey, lease, environmental, PCA, entity-level, zoning, insurance, service contracts); lender consent workstream (3 lenders, $612M assumed debt); title & survey clearance (14 properties, 5 states); tax advisory (REIT qualification, transfer tax, FIRPTA, Section 1060 allocation); closing & post-closing deliverables
ASSUMPTIONS:	Entity-level purchase of 100% membership interests in 14 SPEs; 87 leases requiring estoppel review; 3 mortgage lenders requiring change of control consent; 5-state title/survey/local law coverage; 90-day post-closing transition period
PREPARED BY:	Douglas Fairchild, Responsible Partner
DISTRIBUTION:	Angela Fontaine (Billing Partner); Finance Department — Calderwood & Harkness LLP

[sheet: Workstream Budget]

Workstream	Sub-Task	Fairchild — Partner Hrs	Fairchild — Rate	Fontaine — Partner Hrs	Fontaine — Rate	Hartwell — Partner Hrs	Hartwell — Rate	Nakamura — Sr. Assoc. Hrs	Nakamura — Rate	Dominguez — Assoc. Hrs	Dominguez — Rate	Total Hours	Total Fees	% of Fee Cap
I. ENGAGEMENT & MATTER MANAGEMENT	Engagement letter, conflicts, staffing, budget	15	$1,150	8	$1,100	0	$1,150	10	$725	5	$575	38	$34,450	1.2%
II. LOI & PRE-PSA	LOI review/drafting, NDA, exclusivity extension, structure memo, DD request list, data room protocol	30	$1,150	5	$1,100	25	$1,150	60	$725	40	$575	160	$120,275	4.3%
III. PSA DRAFTING & NEGOTIATION	Initial draft PSA (87 pages + 22 exhibits, 14+ schedules), markup cycles, amendments, blackline	120	$1,150	10	$1,100	30	$1,150	280	$725	200	$575	640	$502,750	18.0%
III. PSA DRAFTING & NEGOTIATION	Exhibit preparation (Exhibits A–V), including rent roll review, allocation schedule, proration methodology, escrow agreement, form estoppel, form SNDA, form guaranty, transition services agreement	40	$1,150	0	$1,100	15	$1,150	120	$725	100	$575	275	$207,250	7.4%
III. PSA DRAFTING & NEGOTIATION	Disclosure schedules review (Schedules 1, 2-1 through 2-14)	10	$1,150	0	$1,100	5	$1,150	50	$725	40	$575	105	$71,750	2.6%
Subtotal — PSA Drafting & Negotiation	170	10	50	450	340	1020	$781,750	27.9%
IV. DUE DILIGENCE	Title review — 14 properties across GA, TX, FL, TN, NC (commitments, exception documents, objections, cures)	25	$1,150	0	$1,100	0	$1,150	80	$725	100	$575	205	$143,375	5.1%
IV. DUE DILIGENCE	Survey review — 14 ALTA/NSPS surveys, instruction letter, comment letter, certifications	10	$1,150	0	$1,100	0	$1,150	40	$725	60	$575	110	$74,900	2.7%
IV. DUE DILIGENCE	Lease audit — 87 leases portfolio summary + top 10 tenant detailed memo	20	$1,150	0	$1,100	0	$1,150	100	$725	120	$575	240	$164,500	5.9%
IV. DUE DILIGENCE	Environmental DD — review 14 Phase I ESAs (including Westlake and Lakeland de minimis RECs), memo	5	$1,150	0	$1,100	0	$1,150	25	$725	30	$575	60	$41,225	1.5%
IV. DUE DILIGENCE	PCA review — 14 PCAs, $2,140,000 immediate repairs, negotiate credit ($1,070,000), memo	5	$1,150	0	$1,100	0	$1,150	20	$725	25	$575	50	$34,575	1.2%
IV. DUE DILIGENCE	Zoning/land use — 14 properties, coordinate with local counsel, confirmation letters	5	$1,150	0	$1,100	0	$1,150	15	$725	25	$575	45	$31,225	1.1%
IV. DUE DILIGENCE	Entity-level DD — org docs, good standing, UCC searches, litigation searches (14 Target Entities + Seller)	5	$1,150	0	$1,100	0	$1,150	20	$725	35	$575	60	$40,850	1.5%
IV. DUE DILIGENCE	Loan document review — Pinnacle ($421.6M, 8 loans), Veltrano ($142.3M, 4 loans), Sycamore ($48.1M, 2 loans)	20	$1,150	0	$1,100	0	$1,150	60	$725	70	$575	150	$106,750	3.8%
IV. DUE DILIGENCE	Insurance coverage review, service contract review (63 contracts), comprehensive DD summary memo	10	$1,150	0	$1,100	0	$1,150	30	$725	40	$575	80	$56,100	2.0%
Subtotal — Due Diligence	105	0	0	390	505	1000	$693,500	24.8%
V. LENDER CONSENT WORKSTREAM	Strategy memo, consent request letters (3 lenders), replacement guaranty drafting/negotiation, assumption agreements, consent fee coordination ($1,825,625 total)	40	$1,150	0	$1,100	0	$1,150	100	$725	80	$575	220	$164,500	5.9%
VI. TITLE & SURVEY DELIVERABLES	Commitment summary chart, pro forma policies, endorsement requests, premium allocation ($2,420,000), marked-up commitments, gap indemnity, title affidavits	15	$1,150	0	$1,100	0	$1,150	50	$725	60	$575	125	$88,125	3.1%
VII. ESTOPPELS & SNDAs	Estoppel tracking (87 tenants, 91.4% ABR target), transmittal, review (6 discrepancies), compilation; SNDA tracking (38 Major Tenants), transmittal, compilation (34 at closing + 4 post-closing), compliance certificate	15	$1,150	0	$1,100	0	$1,150	60	$725	70	$575	145	$101,425	3.6%
VIII. TAX WORKSTREAM	Structure memo, transfer tax analysis (5 states, $3,850,000 est.), FIRPTA analysis, PP allocation (Section 1060), REIT qualification impact, state income/franchise tax, transfer tax returns, Form 8594 draft	15	$1,150	0	$1,100	120	$1,150	30	$725	20	$575	185	$181,650	6.5%
IX. CLOSING	Pre-closing checklist, closing agenda, 14 assignment & assumption agreements, closing certificates, FIRPTA certificate, secretary's certificates, escrow agreements ($16.5M indemnity + $55M deposit), proration statement, settlement statements, bill of sale, assignment of leases/contracts, transition services agreement, tenant notification letters, funds flow memo, wire instructions/confirmations	50	$1,150	5	$1,100	10	$1,150	120	$725	150	$575	335	$241,750	8.6%
X. POST-CLOSING	Obligations tracker, 14 A&R operating agreements, DE manager change filings, foreign qualification filings (5 states), UCC-3 filings, property management transition memo, tenant notification confirmation, proration true-up analysis ($347,218 net credit to Buyer), SNDA post-closing delivery confirmation, indemnity escrow release instructions, title policy issuance confirmation	25	$1,150	0	$1,100	10	$1,150	60	$725	80	$575	175	$128,100	4.6%
XI. R&W INSURANCE	Broker submission memo, policy review ($55M limit, $11M retention, $1,402,500 premium), no-claims declaration, premium wire confirmation — coordination with Hartwick Gunderson / Sentinel Specialty	10	$1,150	0	$1,100	0	$1,150	25	$725	20	$575	55	$40,925	1.5%
XII. LOCAL COUNSEL COORDINATION	Engagement scoping, opinion requirements, recording confirmations — Breckenridge Osgood (TX), Talmadge Beaumont (GA), Haversham Cole (NC), Ellsworth Ridley (TN), Palmetto Strauss (FL)	10	$1,150	0	$1,100	0	$1,150	20	$725	30	$575	60	$43,350	1.5%

XIII. INTERNAL CORRESPONDENCE & CLIENT COMMUNICATION	Key client emails, counterparty correspondence, deal team calls, weekly status updates	30	$1,150	5	$1,100	5	$1,150	40	$725	30	$575	110	$83,950	3.0%
GRAND TOTAL	530	33	220	1420	1430	3633	$2,720,000	97.1%
REMAINING CUSHION BELOW $2,800,000 CAP	$80,000	2.9%

[sheet: Timekeeper Summary]

Timekeeper	Role	Office	Standard Rate ($/hr)	Projected Hours	Projected Fees	% of Total Fees
Douglas Fairchild	Responsible Partner, Real Estate	New York	$1,150	530	$609,500	22.4%
Angela Fontaine	Billing Partner, Real Estate	New York	$1,100	33	$36,300	1.3%
Sylvia Hartwell	Specialist Partner, Tax	Washington, DC	$1,150	220	$253,000	9.3%
Grace Nakamura	Lead Associate, Real Estate	New York	$725	1420	$1,029,500	37.8%
Rafael Dominguez	Working Associate, Real Estate	Washington, DC	$575	1430	$822,250	30.2%
TOTAL	3633	$2,720,000	100.0%
FEE CAP	$2,800,000
CUSHION	$80,000	2.9%

[sheet: Phased Timeline]

Phase	Period	Key Milestone(s)	Primary Workstreams Active	Estimated Hours	Estimated Fees	Cumulative Fees	% of Fee Cap Consumed
Phase 1: Engagement & Pre-PSA	Oct 2, 2023 – Feb 27, 2024	Matter opened (10/2/23); Engagement letter (10/5/23); NDA (10/10/23); LOI executed (10/18/23); Exclusivity commenced (11/15/23); Exclusivity extended to 1/31/24 (12/15/23); Initial draft PSA circulated (1/8/24); PSA negotiation rounds	Engagement & Matter Mgmt; LOI & Pre-PSA; PSA Drafting (initial); Structure Memo; Tax Structure Memo; DD Request List; R&W Broker Submission	850	$595,000	$595,000	21.3%
Phase 2: PSA Signing & Due Diligence	Feb 28, 2024 – Apr 15, 2024	PSA executed (2/28/24); Earnest Money Deposit $27.5M due (3/1/24); Survey review comments (3/15/24); Title objection letter (3/27/24 — deadline 3/29/24); Lender consent requests sent (3/8/24); Title cure response (4/8/24–4/11/24); Comprehensive DD summary (4/10/24); DD Period expires (4/15/24)	PSA Exhibits/Schedules finalization; All DD workstreams (title, survey, lease, env, PCA, zoning, entity, loans, insurance, service contracts); Lender Consent initiation; Title & Survey; Estoppel transmittal (3/4/24)	1200	$840,000	$1,435,000	51.3%
Phase 3: Post-DD / Pre-Closing	Apr 16, 2024 – Jun 5, 2024	Additional Deposit $27.5M hard (4/16/24); PSA First Amendment — estoppel deadline extension & PCA credit (4/12/24); Estoppel review — 6 discrepancies flagged (5/8/24); Estoppel/SNDA delivery deadline (5/15/24); Lender consent deadline (5/24/24); Veltrano consent received (5/17/24); Sycamore consent received (5/22/24); PSA Second Amendment — closing extension to 6/7/24 (5/28/24); Pinnacle consent received (6/4/24)	Lender Consent negotiation & guaranty finalization; Estoppel/SNDA tracking & review; Title deliverables finalization; Tax filings preparation; R&W policy finalization; Closing document preparation; Local counsel coordination	1050	$735,000	$2,170,000	77.5%
Phase 4: Closing	Jun 6, 2024	Actual closing date; 14 assignment & assumption agreements; closing certificates; funds flow ($486.93M net cash to Seller); escrow releases ($55M deposits); indemnity escrow funding ($16.5M); consent fees wired ($1,825,625); transfer taxes ($3,850,000); title premiums ($2,420,000); R&W premium ($1,402,500); SNDA holdback ($200,000)	Closing execution; Settlement statements; Wire confirmations; Tenant notifications	280	$200,000	$2,370,000	84.6%
Phase 5: Post-Closing	Jun 7, 2024 – Sep 4, 2024	Tenant notifications mailed (6/7/24); 4 remaining SNDAs received (7/2/24); $200K holdback released; Title policies issued (7/15/24); A&R operating agreements; DE filings; Foreign qualification updates (5 states); UCC-3 filings; Proration true-up analysis ($347,218 net credit to Buyer); True-up statement agreed (8/28/24); Payment by Seller (9/5/24)	Post-closing filings; Property management transition; Proration true-up; Escrow administration	253	$180,000	$2,550,000	91.1%
Contingency / Unallocated Reserve	Throughout	Unanticipated issues, additional negotiation rounds, supplemental client reporting	All	200	$170,000	$2,720,000	97.1%
TOTAL	3833	$2,720,000	$2,720,000	97.1%

[sheet: Disbursements Estimate]

Category	Description	Estimated Amount
Travel	Partner and associate travel to Atlanta (closing, site visits), Houston, Miami — airfare, hotel, ground transport	$35,000
Filing Fees	Delaware Secretary of State filings (14 certificates of amendment), foreign qualification filings (5 states), UCC-3 filings	$12,000
Database / Search Fees	UCC, judgment, lien, litigation, and bankruptcy searches for 14 Target Entities and Seller across DE and 5 property states	$8,500
Courier & Overnight Delivery	Document delivery to lenders, title company, local counsel, closing packages	$4,500
Copying & Printing	Closing binders, document compilations, executed originals	$6,000
Online Research / Westmark Data Systems	Legal research allocable to matter	$7,500
Meals & Incidentals	Working meals during closing, extended negotiation sessions	$3,000
Conference Calls / Video	Multi-party conference bridges for lender consent calls, closing calls	$1,500
Miscellaneous	Notarization, recording verification, miscellaneous	$2,000
TOTAL ESTIMATED DISBURSEMENTS	$80,000
HIGH-END ESTIMATE	$110,000

[sheet: Local Counsel Estimates]

Jurisdiction	Local Counsel Firm	Lead Partner	Properties Covered	# of Target Entities	Scope	Estimated Fee Range	Low Estimate	High Estimate
Texas	Breckenridge Osgood LLP	James Breckenridge	Westlake Distribution Hub; Katy Freeway Logistics Park; Alliance Commerce Center	3	Title endorsements, transfer tax compliance (no state transfer tax — nominal local fees), local law opinion, recording confirmations	$45,000 – $60,000	$45,000	$60,000
Georgia	Talmadge Beaumont LLP	Catherine Beaumont	Fairfield Logistics Center I & II; Buckhead Place Office Tower; Peachtree Corners Logistics Center	4	Title endorsements, controlling-interest transfer tax declarations (~$1,250,000 transfer tax), local law opinion, recording confirmations	$65,000 – $80,000	$65,000	$80,000
North Carolina	Haversham Cole PLLC	Marshall Haversham	SouthPark Corporate Center	1	Title endorsements, transfer tax compliance (~$180,000 transfer tax), local law opinion, recording confirmations	$25,000 – $35,000	$25,000	$35,000
Tennessee	Ellsworth Ridley LLP	Diane Ellsworth	Murfreesboro Distribution Center; Cool Springs Office Park; Mount Juliet Commerce Park	3	Title endorsements, transfer tax compliance (~$740,000 transfer tax), local law opinion, recording confirmations	$50,000 – $65,000	$50,000	$65,000
Florida	Palmetto Strauss PA	Roberto Strauss	Lakeland Crossings Industrial; Southport Logistics Park; Brickell Bay Office Building	3	Title endorsements, documentary stamp tax compliance (~$1,680,000 transfer tax), local law opinion, recording confirmations	$55,000 – $70,000	$55,000	$70,000
TOTAL	14	$240,000 – $310,000	$240,000	$310,000

[sheet: Cover & Summary]
Field | Value
MEMORANDUM
TO: | Angela Fontaine, Billing Partner — Calderwood & Harkness LLP
FROM: | Douglas Fairchild, Responsible Partner — Calderwood & Harkness LLP
DATE: | October 15, 2023
RE: | Budget & Fee Estimate — Fairwater REIT Acquisition of GMP Fund III 14-Property Sun Belt Portfolio
MATTER NUMBER: | 1036-00004
CLIENT: | Fairwater Real Estate Investment Trust
CLIENT CONTACT: | David Elgin Park, General Counsel; Camille Oduya, In-House Real Estate Counsel
TRANSACTION: | $1,100,000,000 entity-level acquisition of 14 property-owning Delaware LLCs from Greystone Meridian Partners Fund III, L.P.
ENGAGEMENT LETTER DATE: | October 5, 2023
FEE CAP: | $2,800,000 (plus disbursements per engagement letter)
ESTIMATED DISBURSEMENTS: | $85,000 – $110,000 (travel, filing fees, courier, copying, database searches)
PROJECTED TOTAL FEES: | $2,720,000 (targeting ~$80,000 cushion below cap)
PROJECTED TOTAL HOURS: | ~4,850 hours
BLENDED EFFECTIVE RATE: | ~$561/hour ($2,720,000 ÷ 4,850)
ENGAGEMENT TEAM: | Douglas Fairchild (Responsible Partner); Angela Fontaine (Billing Partner); Grace Nakamura (Lead Associate); Rafael Dominguez (Working Associate); Sylvia Hartwell (Specialist Partner, Tax)
LOCAL COUNSEL (5 JURISDICTIONS): | Breckenridge Osgood LLP (TX); Talmadge Beaumont LLP (GA); Haversham Cole PLLC (NC); Ellsworth Ridley LLP (TN); Palmetto Strauss PA (FL)
NOTE: | Local counsel fees are separate from the C&H fee cap and will be billed directly to client or passed through as disbursements. Estimated aggregate local counsel fees: $280,000 – $340,000.
SCOPE OVERVIEW: | Transaction/PSA drafting & negotiation; due diligence (title, survey, lease, environmental, PCA, entity-level, zoning, insurance, service contracts); lender consent workstream (3 lenders, $612M assumed debt); title & survey clearance (14 properties, 5 states); tax advisory (REIT qualification, transfer tax, FIRPTA, Section 1060 allocation); closing & post-closing deliverables
ASSUMPTIONS: | Entity-level purchase of 100% membership interests in 14 SPEs; 87 leases requiring estoppel review; 3 mortgage lenders requiring change of control consent; 5-state title/survey/local law coverage; 90-day post-closing transition period
PREPARED BY: | Douglas Fairchild, Responsible Partner
DISTRIBUTION: | Angela Fontaine (Billing Partner); Finance Department — Calderwood & Harkness LLP
[sheet: Workstream Budget]
Workstream | Sub-Task | Fairchild — Partner Hrs | Fairchild — Rate | Fontaine — Partner Hrs | Fontaine — Rate | Hartwell — Partner Hrs | Hartwell — Rate | Nakamura — Sr. Assoc. Hrs | Nakamura — Rate | Dominguez — Assoc. Hrs | Dominguez — Rate | Total Hours | Total Fees | % of Fee Cap
I. ENGAGEMENT & MATTER MANAGEMENT | Engagement letter, conflicts, staffing, budget | 15 | $1,150 | 8 | $1,100 | 0 | $1,150 | 10 | $725 | 5 | $575 | 38 | $34,450 | 1.2%
II. LOI & PRE-PSA | LOI review/drafting, NDA, exclusivity extension, structure memo, DD request list, data room protocol | 30 | $1,150 | 5 | $1,100 | 25 | $1,150 | 60 | $725 | 40 | $575 | 160 | $120,275 | 4.3%
III. PSA DRAFTING & NEGOTIATION | Initial draft PSA (87 pages + 22 exhibits, 14+ schedules), markup cycles, amendments, blackline | 120 | $1,150 | 10 | $1,100 | 30 | $1,150 | 280 | $725 | 200 | $575 | 640 | $502,750 | 18.0%
III. PSA DRAFTING & NEGOTIATION | Exhibit preparation (Exhibits A–V), including rent roll review, allocation schedule, proration methodology, escrow agreement, form estoppel, form SNDA, form guaranty, transition services agreement | 40 | $1,150 | 0 | $1,100 | 15 | $1,150 | 120 | $725 | 100 | $575 | 275 | $207,250 | 7.4%
III. PSA DRAFTING & NEGOTIATION | Disclosure schedules review (Schedules 1, 2-1 through 2-14) | 10 | $1,150 | 0 | $1,100 | 5 | $1,150 | 50 | $725 | 40 | $575 | 105 | $71,750 | 2.6%
Subtotal — PSA Drafting & Negotiation | 170 | 10 | 50 | 450 | 340 | 1020 | $781,750 | 27.9%
IV. DUE DILIGENCE | Title review — 14 properties across GA, TX, FL, TN, NC (commitments, exception documents, objections, cures) | 25 | $1,150 | 0 | $1,100 | 0 | $1,150 | 80 | $725 | 100 | $575 | 205 | $143,375 | 5.1%
IV. DUE DILIGENCE | Survey review — 14 ALTA/NSPS surveys, instruction letter, comment letter, certifications | 10 | $1,150 | 0 | $1,100 | 0 | $1,150 | 40 | $725 | 60 | $575 | 110 | $74,900 | 2.7%
IV. DUE DILIGENCE | Lease audit — 87 leases portfolio summary + top 10 tenant detailed memo | 20 | $1,150 | 0 | $1,100 | 0 | $1,150 | 100 | $725 | 120 | $575 | 240 | $164,500 | 5.9%
IV. DUE DILIGENCE | Environmental DD — review 14 Phase I ESAs (including Westlake and Lakeland de minimis RECs), memo | 5 | $1,150 | 0 | $1,100 | 0 | $1,150 | 25 | $725 | 30 | $575 | 60 | $41,225 | 1.5%
IV. DUE DILIGENCE | PCA review — 14 PCAs, $2,140,000 immediate repairs, negotiate credit ($1,070,000), memo | 5 | $1,150 | 0 | $1,100 | 0 | $1,150 | 20 | $725 | 25 | $575 | 50 | $34,575 | 1.2%
IV. DUE DILIGENCE | Zoning/land use — 14 properties, coordinate with local counsel, confirmation letters | 5 | $1,150 | 0 | $1,100 | 0 | $1,150 | 15 | $725 | 25 | $575 | 45 | $31,225 | 1.1%
IV. DUE DILIGENCE | Entity-level DD — org docs, good standing, UCC searches, litigation searches (14 Target Entities + Seller) | 5 | $1,150 | 0 | $1,100 | 0 | $1,150 | 20 | $725 | 35 | $575 | 60 | $40,850 | 1.5%
IV. DUE DILIGENCE | Loan document review — Pinnacle ($421.6M, 8 loans), Veltrano ($142.3M, 4 loans), Sycamore ($48.1M, 2 loans) | 20 | $1,150 | 0 | $1,100 | 0 | $1,150 | 60 | $725 | 70 | $575 | 150 | $106,750 | 3.8%
IV. DUE DILIGENCE | Insurance coverage review, service contract review (63 contracts), comprehensive DD summary memo | 10 | $1,150 | 0 | $1,100 | 0 | $1,150 | 30 | $725 | 40 | $575 | 80 | $56,100 | 2.0%
Subtotal — Due Diligence | 105 | 0 | 0 | 390 | 505 | 1000 | $693,500 | 24.8%
V. LENDER CONSENT WORKSTREAM | Strategy memo, consent request letters (3 lenders), replacement guaranty drafting/negotiation, assumption agreements, consent fee coordination ($1,825,625 total) | 40 | $1,150 | 0 | $1,100 | 0 | $1,150 | 100 | $725 | 80 | $575 | 220 | $164,500 | 5.9%
VI. TITLE & SURVEY DELIVERABLES | Commitment summary chart, pro forma policies, endorsement requests, premium allocation ($2,420,000), marked-up commitments, gap indemnity, title affidavits | 15 | $1,150 | 0 | $1,100 | 0 | $1,150 | 50 | $725 | 60 | $575 | 125 | $88,125 | 3.1%
VII. ESTOPPELS & SNDAs | Estoppel tracking (87 tenants, 91.4% ABR target), transmittal, review (6 discrepancies), compilation; SNDA tracking (38 Major Tenants), transmittal, compilation (34 at closing + 4 post-closing), compliance certificate | 15 | $1,150 | 0 | $1,100 | 0 | $1,150 | 60 | $725 | 70 | $575 | 145 | $101,425 | 3.6%
VIII. TAX WORKSTREAM | Structure memo, transfer tax analysis (5 states, $3,850,000 est.), FIRPTA analysis, PP allocation (Section 1060), REIT qualification impact, state income/franchise tax, transfer tax returns, Form 8594 draft | 15 | $1,150 | 0 | $1,100 | 120 | $1,150 | 30 | $725 | 20 | $575 | 185 | $181,650 | 6.5%
IX. CLOSING | Pre-closing checklist, closing agenda, 14 assignment & assumption agreements, closing certificates, FIRPTA certificate, secretary's certificates, escrow agreements ($16.5M indemnity + $55M deposit), proration statement, settlement statements, bill of sale, assignment of leases/contracts, transition services agreement, tenant notification letters, funds flow memo, wire instructions/confirmations | 50 | $1,150 | 5 | $1,100 | 10 | $1,150 | 120 | $725 | 150 | $575 | 335 | $241,750 | 8.6%
X. POST-CLOSING | Obligations tracker, 14 A&R operating agreements, DE manager change filings, foreign qualification filings (5 states), UCC-3 filings, property management transition memo, tenant notification confirmation, proration true-up analysis ($347,218 net credit to Buyer), SNDA post-closing delivery confirmation, indemnity escrow release instructions, title policy issuance confirmation | 25 | $1,150 | 0 | $1,100 | 10 | $1,150 | 60 | $725 | 80 | $575 | 175 | $128,100 | 4.6%
XI. R&W INSURANCE | Broker submission memo, policy review ($55M limit, $11M retention, $1,402,500 premium), no-claims declaration, premium wire confirmation — coordination with Hartwick Gunderson / Sentinel Specialty | 10 | $1,150 | 0 | $1,100 | 0 | $1,150 | 25 | $725 | 20 | $575 | 55 | $40,925 | 1.5%
XII. LOCAL COUNSEL COORDINATION | Engagement scoping, opinion requirements, recording confirmations — Breckenridge Osgood (TX), Talmadge Beaumont (GA), Haversham Cole (NC), Ellsworth Ridley (TN), Palmetto Strauss (FL) | 10 | $1,150 | 0 | $1,100 | 0 | $1,150 | 20 | $725 | 30 | $575 | 60 | $43,350 | 1.5%
XIII. INTERNAL CORRESPONDENCE & CLIENT COMMUNICATION | Key client emails, counterparty correspondence, deal team calls, weekly status updates | 30 | $1,150 | 5 | $1,100 | 5 | $1,150 | 40 | $725 | 30 | $575 | 110 | $83,950 | 3.0%
GRAND TOTAL | 530 | 33 | 220 | 1420 | 1430 | 3633 | $2,720,000 | 97.1%
REMAINING CUSHION BELOW $2,800,000 CAP | $80,000 | 2.9%
[sheet: Timekeeper Summary]
Timekeeper | Role | Office | Standard Rate ($/hr) | Projected Hours | Projected Fees | % of Total Fees
Douglas Fairchild | Responsible Partner, Real Estate | New York | $1,150 | 530 | $609,500 | 22.4%
Angela Fontaine | Billing Partner, Real Estate | New York | $1,100 | 33 | $36,300 | 1.3%
Sylvia Hartwell | Specialist Partner, Tax | Washington, DC | $1,150 | 220 | $253,000 | 9.3%
Grace Nakamura | Lead Associate, Real Estate | New York | $725 | 1420 | $1,029,500 | 37.8%
Rafael Dominguez | Working Associate, Real Estate | Washington, DC | $575 | 1430 | $822,250 | 30.2%
TOTAL | 3633 | $2,720,000 | 100.0%
FEE CAP | $2,800,000
CUSHION | $80,000 | 2.9%
[sheet: Phased Timeline]
Phase | Period | Key Milestone(s) | Primary Workstreams Active | Estimated Hours | Estimated Fees | Cumulative Fees | % of Fee Cap Consumed
Phase 1: Engagement & Pre-PSA | Oct 2, 2023 – Feb 27, 2024 | Matter opened (10/2/23); Engagement letter (10/5/23); NDA (10/10/23); LOI executed (10/18/23); Exclusivity commenced (11/15/23); Exclusivity extended to 1/31/24 (12/15/23); Initial draft PSA circulated (1/8/24); PSA negotiation rounds | Engagement & Matter Mgmt; LOI & Pre-PSA; PSA Drafting (initial); Structure Memo; Tax Structure Memo; DD Request List; R&W Broker Submission | 850 | $595,000 | $595,000 | 21.3%
Phase 2: PSA Signing & Due Diligence | Feb 28, 2024 – Apr 15, 2024 | PSA executed (2/28/24); Earnest Money Deposit $27.5M due (3/1/24); Survey review comments (3/15/24); Title objection letter (3/27/24 — deadline 3/29/24); Lender consent requests sent (3/8/24); Title cure response (4/8/24–4/11/24); Comprehensive DD summary (4/10/24); DD Period expires (4/15/24) | PSA Exhibits/Schedules finalization; All DD workstreams (title, survey, lease, env, PCA, zoning, entity, loans, insurance, service contracts); Lender Consent initiation; Title & Survey; Estoppel transmittal (3/4/24) | 1200 | $840,000 | $1,435,000 | 51.3%
Phase 3: Post-DD / Pre-Closing | Apr 16, 2024 – Jun 5, 2024 | Additional Deposit $27.5M hard (4/16/24); PSA First Amendment — estoppel deadline extension & PCA credit (4/12/24); Estoppel review — 6 discrepancies flagged (5/8/24); Estoppel/SNDA delivery deadline (5/15/24); Lender consent deadline (5/24/24); Veltrano consent received (5/17/24); Sycamore consent received (5/22/24); PSA Second Amendment — closing extension to 6/7/24 (5/28/24); Pinnacle consent received (6/4/24) | Lender Consent negotiation & guaranty finalization; Estoppel/SNDA tracking & review; Title deliverables finalization; Tax filings preparation; R&W policy finalization; Closing document preparation; Local counsel coordination | 1050 | $735,000 | $2,170,000 | 77.5%
Phase 4: Closing | Jun 6, 2024 | Actual closing date; 14 assignment & assumption agreements; closing certificates; funds flow ($486.93M net cash to Seller); escrow releases ($55M deposits); indemnity escrow funding ($16.5M); consent fees wired ($1,825,625); transfer taxes ($3,850,000); title premiums ($2,420,000); R&W premium ($1,402,500); SNDA holdback ($200,000) | Closing execution; Settlement statements; Wire confirmations; Tenant notifications | 280 | $200,000 | $2,370,000 | 84.6%
Phase 5: Post-Closing | Jun 7, 2024 – Sep 4, 2024 | Tenant notifications mailed (6/7/24); 4 remaining SNDAs received (7/2/24); $200K holdback released; Title policies issued (7/15/24); A&R operating agreements; DE filings; Foreign qualification updates (5 states); UCC-3 filings; Proration true-up analysis ($347,218 net credit to Buyer); True-up statement agreed (8/28/24); Payment by Seller (9/5/24) | Post-closing filings; Property management transition; Proration true-up; Escrow administration | 253 | $180,000 | $2,550,000 | 91.1%
Contingency / Unallocated Reserve | Throughout | Unanticipated issues, additional negotiation rounds, supplemental client reporting | All | 200 | $170,000 | $2,720,000 | 97.1%
TOTAL | 3833 | $2,720,000 | $2,720,000 | 97.1%
[sheet: Disbursements Estimate]
Category | Description | Estimated Amount
Travel | Partner and associate travel to Atlanta (closing, site visits), Houston, Miami — airfare, hotel, ground transport | $35,000
Filing Fees | Delaware Secretary of State filings (14 certificates of amendment), foreign qualification filings (5 states), UCC-3 filings | $12,000
Database / Search Fees | UCC, judgment, lien, litigation, and bankruptcy searches for 14 Target Entities and Seller across DE and 5 property states | $8,500
Courier & Overnight Delivery | Document delivery to lenders, title company, local counsel, closing packages | $4,500
Copying & Printing | Closing binders, document compilations, executed originals | $6,000
Online Research / Westmark Data Systems | Legal research allocable to matter | $7,500
Meals & Incidentals | Working meals during closing, extended negotiation sessions | $3,000
Conference Calls / Video | Multi-party conference bridges for lender consent calls, closing calls | $1,500
Miscellaneous | Notarization, recording verification, miscellaneous | $2,000
TOTAL ESTIMATED DISBURSEMENTS | $80,000
HIGH-END ESTIMATE | $110,000
[sheet: Local Counsel Estimates]
Jurisdiction | Local Counsel Firm | Lead Partner | Properties Covered | # of Target Entities | Scope | Estimated Fee Range | Low Estimate | High Estimate
Texas | Breckenridge Osgood LLP | James Breckenridge | Westlake Distribution Hub; Katy Freeway Logistics Park; Alliance Commerce Center | 3 | Title endorsements, transfer tax compliance (no state transfer tax — nominal local fees), local law opinion, recording confirmations | $45,000 – $60,000 | $45,000 | $60,000
Georgia | Talmadge Beaumont LLP | Catherine Beaumont | Fairfield Logistics Center I & II; Buckhead Place Office Tower; Peachtree Corners Logistics Center | 4 | Title endorsements, controlling-interest transfer tax declarations (~$1,250,000 transfer tax), local law opinion, recording confirmations | $65,000 – $80,000 | $65,000 | $80,000
North Carolina | Haversham Cole PLLC | Marshall Haversham | SouthPark Corporate Center | 1 | Title endorsements, transfer tax compliance (~$180,000 transfer tax), local law opinion, recording confirmations | $25,000 – $35,000 | $25,000 | $35,000
Tennessee | Ellsworth Ridley LLP | Diane Ellsworth | Murfreesboro Distribution Center; Cool Springs Office Park; Mount Juliet Commerce Park | 3 | Title endorsements, transfer tax compliance (~$740,000 transfer tax), local law opinion, recording confirmations | $50,000 – $65,000 | $50,000 | $65,000
Florida | Palmetto Strauss PA | Roberto Strauss | Lakeland Crossings Industrial; Southport Logistics Park; Brickell Bay Office Building | 3 | Title endorsements, documentary stamp tax compliance (~$1,680,000 transfer tax), local law opinion, recording confirmations | $55,000 – $70,000 | $55,000 | $70,000
TOTAL | 14 | $240,000 – $310,000 | $240,000 | $310,000

[sheet: Cover & Summary]

MEMORANDUM

Record

Parties

Dates

Amounts