LSI 2010 Real Estate Joint Ventures conference materials.pdf

David E. Myre, Jr. of Hillis Clark Martin & Peterson, P.S.
Jane Rakay Nelson of Lane Powell PC
Excerpts from Term Sheet
Speaker 9a: 1
Speaker 10a: 1
Magnificent Tower LLC,
a Delaware limited liability company
Confidential Term Sheet
This Confidential Term Sheet is a nonbinding expression of interest by Institutional
Investment Fund LLC (herein “Investor”) to form a joint venture with Local Development
Partners LLC (herein “Developer”), an affiliate of Local Development Company, for the purpose
of acquiring a certain site at 1234 Fifth Avenue, Gotham, WA (the “Site”) at which the joint
venture will develop, design, construct, mortgage, own and operate the Project hereinbelow
described.
1. The Project. The “Project” will consist of a Class A mixed-use tower
encompassing approximately 300,000 square feet and consisting of underground parking
facilities for approximately 120 vehicles, a ground floor and two additional floors of rental retail
space, three (3) floors of office/commercial space, and twenty-five (25) residential floors
containing approximately 220 luxury rental apartment units.
2. Sources and Uses of Funds. The parties currently anticipate that the joint venture
will acquire the Site and develop, design, construct and lease the Project to the milestone of
Project Stabilization (as hereinafter defined) using the following Sources and Uses of Funds.
Sources of Funds
First Mortgage Loan $ 65,000,000
Cash Capital Contributions
Investor
Developer
Total Sources
$ 31,500,000
3,500,000
$100,000,000
Uses of Funds
Site Purchase Price $ 10,000,000
Construction Period Soft Costs $ 12,000,000
GMC Construction Contract $ 78,000,000
Total Uses $100,000,000
3. Form and Name of Joint Venture. The joint venture will be in the form of a
limited liability company organized under Delaware’s Limited Liability Company Act and
governed by a limited liability company agreement (the “Operating Agreement”) to be
negotiated containing terms and conditions substantially consistent with those set forth herein
and such other terms and conditions as shall be mutually agreeable. The joint venture (the
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Law Seminars International | Real Estate Joint Ventures and Funds | 02/08/10 in Seattle, WA