@Matthew Mazur Thank you for your response!
It is a single medical condo inside of a shared medical building. There are four condo units and the hospital owns the other three. Mine is the one they don't occupy or own and do want but cannot purchase at this time. This is why they want to purchase when they are ready. That being said, we are finalizing the initial lease now at it will be a nice investment for me until and if they buy.
Furthermore the property is located on hospital property and our association pays a land lease (99 year term) to the hospital so it only makes sense they own the building in full at some point. Were about 30 years into the land lease.
Here are the proposed lease terms based on the discussions we’ve had to date:
· Five year lease term, with two successive options for 5-year renewal terms
· Rent at Fair Market Value, triple net, for first 5-year term
· Rent for first and second renewal terms determined by Fair Market Value appraisal
· CAM of $600 paid by tenant, plus any increase in assessments for land lease and paving (special clause I requested)
· CAM to increase to actual rates upon first and second renewal terms
· HVAC and other capital improvements remain the responsibility of the landlord
· “right of first refusal” to purchase on comparable terms presented by other buyer (our lawyer drafted a section about this…they haven't sent me the details yet and that's why Im wondering if I even want to go there with this issue.). I do like your idea about countering with a ROFO. Maybe within the last 120 days of either first or second five-year lease term??
Would love to hear if you see anything in these terms you wouldn't like, or how you personally would consider structuring the ROFO, if at all.
Really appreciate it!
