Details of the Omaha Campus for Hope Property questions:
Building sale price is $3.45 millionuntil December 31, 2019. After this date a new price may be set.
Rent is at $6.00 per square foot if all availablespace is leased by one tenant (Total square feet 43,366).If less than all available square feet is leased by one tenant, rent persquare footmay need to be negotiated with $6.00 persquare foot being theminimum. Break-down on each area of the building is attached.
The lease term will be three years with two one-year extensions – with an incentive to purchase (see below).
Rent is triple-net – that is the tenant will pay separately for real-estate taxes (if applicable) repairs, utilities, insurance, and maintenance. Major structural repairs will be covered by landlord. All other repairs including HVAC covered by tenant.
Utilities (OPPD and MUD) totaled $60,667 in 2015; and $34,531 through July in 2016. Maintenance costs have averaged between $60,000 and $70,000 the last three years. These costs include an allocation of our internal maintenance staff as well as any outside vendors used.
Tenant for short-term residential and dual residential programs are required to provide for compliance of the terms of the land use restriction agreement, which includes qualifying clients per income restrictions for these units and certain reporting requirements.
As an incentive for the tenant to purchase the building, in the event the tenant elects to purchase the building during the first three years of the lease, 80.0% of tenant’s rental paymentsmade to Catholic Charities in the first three years will be applied to the purchase price of the building. In the event the tenant elects to purchase the building during the fourth year of its lease, the percentage drops to 70.0% and it drops to 60.0% in year 5. In the event an offer to purchase the building is made by another buyer, and in the event the tenant has leased at least 66.66% of the building space for years 1-5, that tenant will have the first right of refusal to purchase the building during the time of the lease. The incentive to purchase and any right of first refusal will automatically terminate should the tenant’s lease terminate for any reason.
All personal property – including beds, book shelves, chairs, desks, file cabinets, kitchen equipment and supplies, night stands, microwave ovens, washers/dryers, refrigerators, tables, vehicles, personal computers, materials for group, printers and phones will be inventoried and detailed for sale to the tenant at the time of the signing of the lease in the amount of $250,000.00. Payment can be made in two installments on December 31, 2016 and June 30, 2017.
A draft of the proposed lease agreement will be available during the week of September 19th.