PARTIAL TERMINATION OF AND SIXTH AMENDMENT TO AMENDED AND RESTATED MASTER LEASE AGREEMENT (LEASE NO. 2)

Contract Categories: Real Estate - Lease Agreements
EX-10.1 2 a13-21069_1ex10d1.htm EX-10.1

Exhibit 10.1

 

 

PARTIAL TERMINATION OF AND SIXTH AMENDMENT TO
AMENDED AND RESTATED MASTER LEASE AGREEMENT
(LEASE NO. 2)

 

THIS PARTIAL TERMINATION OF AND SIXTH AMENDMENT TO AMENDED AND RESTATED MASTER LEASE AGREEMENT (LEASE NO. 2) (this “Amendment”) is made and entered into as of September 19, 2013, by and among each of the parties identified on the signature pages hereof as a landlord (collectively, “Landlord”) and each of the parties identified on the signature pages hereof as a tenant (jointly and severally, “Tenant”).

 

W I T N E S S E T H:

 

WHEREAS, pursuant to the terms of that certain Amended and Restated Master Lease Agreement (Lease No. 2), dated as of August 4, 2009, as amended by that certain Partial Termination of and First Amendment to Amended and Restated Master Lease Agreement (Lease No. 2), dated as of November 1, 2009, that certain Partial Termination of and Second Amendment to Amended and Restated Master Lease Agreement (Lease No. 2), dated as of August 1, 2010, that certain Third Amendment to Amended and Restated Master Lease Agreement (Lease No. 2), dated as of June 20, 2011, that certain Fourth Amendment to Amended and Restated Master Lease Agreement (Lease No. 2), dated as of July 22, 2011, and that certain Fifth Amendment to Amended and Restated Master Lease Agreement (Lease No. 2), dated as of August 31, 2012 (as so amended, “Amended Lease No. 2”), Landlord leases to Tenant, and Tenant leases from Landlord, the Leased Property (this and other capitalized terms used but not otherwise defined herein having the meanings given such terms in Amended Lease No. 2), all as more particularly described in Amended Lease No. 2;

 

WHEREAS, pursuant to that certain Asset Purchase Agreement, dated as of August 29, 2013, by and among Reliant Hospital Partners, LLC, Senior Housing Properties Trust (“SNH”), Five Star Quality Care, Inc., HRES1 Properties Trust (“HRES1”), FS Commonwealth LLC (“FSC”), FS Patriot LLC (“FSP”) and HSRE-TST III, LLC (the “Sale Agreement”), HRES1 has agreed to sell the Rehabilitation Hospital Properties; and

 

WHEREAS, in connection with the sale of the Rehabilitation Hospital Properties in accordance with the Sale Agreement, Landlord and Tenant wish to amend Amended Lease No. 2 to terminate Amended Lease No. 2 with respect to the Rehabilitation Hospital Properties effective as of the Closing Date (as defined in the Sale Agreement);

 

NOW, THEREFORE, in consideration of the mutual covenants herein contained and other good and valuable consideration, the mutual receipt and legal sufficiency of which are hereby acknowledged, Landlord and Tenant hereby agree that, effective as of the Closing Date, Amended Lease No. 2 is hereby amended as follows:

 

1.         Partial Termination of Lease.  Amended Lease No. 2 is terminated with respect to the Rehabilitation Hospital Properties and neither Landlord nor Tenant shall have any further rights or liabilities thereunder with respect to the Rehabilitation Hospital Properties from and after the Closing Date, except for those rights and liabilities which by their terms survive the termination of Amended Lease No. 2.  With respect to periods

 



 

from and after the Closing Date, all references in Amended Lease No. 2 to the Rehabilitation Hospital Properties are hereby deleted.

 

2.         Minimum Rent.  Notwithstanding anything in Amended Lease No. 2 to the contrary (including, without limitation, Sections 3.1.1(d) and 4.1.1(b) of Amended Lease No. 2), Minimum Rent is hereby reduced by Nine Million Five Hundred Thousand and No Hundredths Dollars ($9,500,000.00) per annum for the period from and after the Closing Date.

 

3.         Schedule 1.  With respect to periods from and after the Closing Date, Schedule 1 to Amended Lease No. 2 is deleted in its entirety and replaced with Schedule 1 attached hereto.

 

4.         Exhibit A.  With respect to periods from and after the Closing Date, Exhibit A to Amended Lease No. 2 is amended by deleting each of Exhibit A-25 and Exhibit A-26 attached thereto in their respective entireties and replacing each of them with “Intentionally Deleted.”

 

5.         Release of FSC and FSP.  FSC and FSP are hereby released from their obligations and liabilities to Landlord under Amended Lease No. 2 with respect to matters first occurring from and after the Closing Date, except to the extent such obligations and liabilities relate to obligations and liabilities of the Sellers (as defined in the Sale Agreement) under the Sale Agreement.  FSC and FSP agree that all indemnification obligations of Parents (as defined in the Sale Agreement) and Sellers under the Sale Agreement will be the responsibility of FSC and FSP (jointly and severally) other than those that arise solely as a result of a breach of a representation, warranty or covenant caused by SNH or HRES1, which shall be the obligation of the breaching party.

 

6.         Effectiveness.  If the Closing (as defined in the Sale Agreement) does not occur or the Sale Agreement is terminated, this Amendment shall be of no further force or effect.

 

7.         Ratification.  As amended hereby, Amended Lease No. 2 is ratified and confirmed.

 

 

[Remainder of page intentionally left blank;

signature pages follow]

 

- 2 -



 

IN WITNESS WHEREOF, the parties have caused this Amendment to be duly executed as a sealed instrument as of the date first above written.

 

 

LANDLORD:

 

 

 

SPTIHS PROPERTIES TRUST

 

 

 

 

By:

/s/ David J. Hegarty

 

 

 

David J. Hegarty

 

 

President

 

 

 

 

SPTMNR PROPERTIES TRUST

 

 

 

 

By:

/s/ David J. Hegarty

 

 

 

David J. Hegarty

 

 

President

 

 

 

 

SNH/LTA PROPERTIES GA LLC

 

 

 

 

By:

/s/ David J. Hegarty

 

 

 

David J. Hegarty

 

 

President

 

 

 

 

SNH/LTA PROPERTIES TRUST

 

 

 

 

By:

/s/ David J. Hegarty

 

 

 

David J. Hegarty

 

 

President

 

 

 

 

O.F.C. CORPORATION

 

 

 

 

By:

/s/ David J. Hegarty

 

 

 

David J. Hegarty

 

 

President

 

 

 

 

SNH CHS PROPERTIES TRUST

 

 

 

By:

/s/ David J. Hegarty

 

 

 

David J. Hegarty

 

 

President

 

 

 

 

CCC OF KENTUCKY TRUST

 

 

 

By:

/s/ David J. Hegarty

 

 

 

David J. Hegarty

 

 

President

 

- 3 -



 

 

LEISURE PARK VENTURE LIMITED PARTNERSHIP

 

 

 

By:

 

CCC Leisure Park Corporation,

 

 

 

its General Partner

 

 

 

 

 

 

 

By:

/s/ David J. Hegarty

 

 

 

 

 

David J. Hegarty

 

 

 

 

President

 

 

 

 

 

 

CCDE SENIOR LIVING LLC

 

 

 

By:

/s/ David J. Hegarty

 

 

 

David J. Hegarty

 

 

President

 

 

 

 

CCOP SENIOR LIVING LLC

 

 

 

By:

/s/ David J. Hegarty

 

 

 

David J. Hegarty

 

 

President

 

 

 

 

CCC PUEBLO NORTE TRUST

 

 

 

By:

/s/ David J. Hegarty

 

 

 

David J. Hegarty

 

 

President

 

 

 

 

CCC RETIREMENT COMMUNITIES II, L.P.

 

 

 

By:

 

Crestline Ventures LLC,

 

 

 

its General Partner

 

 

 

 

 

 

 

By:

/s/ David J. Hegarty

 

 

 

 

 

David J. Hegarty

 

 

 

 

President

 

 

 

 

 

 

CCC INVESTMENTS I, L.L.C.

 

 

 

By:

/s/ David J. Hegarty

 

 

 

David J. Hegarty

 

 

President

 

- 4 -



 

 

CCC FINANCING I TRUST

 

 

 

By:

/s/ David J. Hegarty

 

 

 

David J. Hegarty

 

 

President

 

 

 

 

CCC FINANCING LIMITED, L.P.

 

 

 

By:

 

CCC Retirement Trust,

 

 

 

its General Partner

 

 

 

 

 

 

 

By:

/s/ David J. Hegarty

 

 

 

 

 

David J. Hegarty

 

 

 

 

President

 

 

 

 

 

 

SNH SOMERFORD PROPERTIES TRUST

 

 

 

By:

/s/ David J. Hegarty

 

 

 

David J. Hegarty

 

 

President

 

 

 

 

HRES1 PROPERTIES TRUST

 

 

 

By:

/s/ David J. Hegarty

 

 

 

David J. Hegarty

 

 

President

 

- 5 -



 

 

TENANT:

 

 

 

FIVE STAR QUALITY CARE TRUST

 

 

 

By:

/s/ Bruce J. Mackey Jr.

 

 

 

Bruce J. Mackey Jr.

 

 

President

 

 

 

 

FS TENANT HOLDING COMPANY TRUST

 

 

 

By:

/s/ Bruce J. Mackey Jr.

 

 

 

Bruce J. Mackey Jr.

 

 

President

 

 

 

 

FS COMMONWEALTH LLC

 

 

 

By:

/s/ Bruce J. Mackey Jr.

 

 

 

Bruce J. Mackey Jr.

 

 

President

 

 

 

 

FS PATRIOT LLC

 

 

 

By:

/s/ Bruce J. Mackey Jr.

 

 

 

Bruce J. Mackey Jr.

 

 

President

 

- 6 -



 

Exhibit 10.1

 

SCHEDULE 1

 

PROPERTY-SPECIFIC INFORMATION

 

 

Exhibit

Property Address

Base Gross Revenues
(Calendar Year)

Base Gross Revenues
(Dollar Amount)

Commencement
Date

Interest
Rate

A-1

Ashton Gables in Riverchase
2184 Parkway Lake Drive
Birmingham, AL 35244

2009

$2,121,622

08/01/2008

8%

A-2

Lakeview Estates
2634 Valleydale Road
Birmingham, AL 35244

2009

$2,692,868

08/01/2008

8%

A-3

Forum at Pueblo Norte
7090 East Mescal Street
Scottsdale, AZ 85254

2005

$11,470,312

01/11/2002

10%

A-4

La Salette Health and
Rehabilitation Center
537 East Fulton Street
Stockton, CA 95204

2005

$7,726,002

12/31/2001

10%

A-5

Thousand Oaks Health Care Center
93 West Avenida de Los Arboles
Thousand Oaks, CA 91360

2005

$8,087,430

12/31/2001

10%

A-6

Skyline Ridge Nursing &
Rehabilitation Center
515 Fairview Avenue
Canon City, CO 81212

2005

$4,104,100

12/31/2001

10%

A-7

Springs Village Care Center
110 West Van Buren Street
Colorado Springs, CO 80907

2005

$4,799,252

12/31/2001

10%

A-8

Willow Tree Care Center
2050 South Main Street
Delta, CO 81416

2005

$4,310,982

12/31/2001

10%

A-9

Cedars Healthcare Center
1599 Ingalls Street
Lakewood, CO 80214

2005

$6,964,007

12/31/2001

10%

A-10

Millcroft
255 Possum Park Road
Newark, DE 19711

2005

$11,410,121

01/11/2002

10%

A-11

Forwood Manor
1912 Marsh Road
Wilmington, DE 19810

2005

$13,446,434

01/11/2002

10%

A-12

Foulk Manor South
407 Foulk Road
Wilmington, DE 19803

2005

$4,430,251

01/11/2002

10%

A-13

Shipley Manor
2723 Shipley Road
Wilmington, DE 19810

2005

$9,333,057

01/11/2002

10%

A-14

Forum at Deer Creek
3001 Deer Creek
Country Club Blvd.
Deerfield Beach, FL 33442

2005

$12,323,581

01/11/2002

10%

A-15

Springwood Court
12780 Kenwood Lane
Fort Myers, FL 33907

2005

$2,577,612

01/11/2002

10%

A-16

Fountainview
111 Executive Center Drive
West Palm Beach, FL 33401

2005

$7,920,202

01/11/2002

10%

 



 

Exhibit

Property Address

Base Gross Revenues
(Calendar Year)

Base Gross Revenues
(Dollar Amount)

Commencement
Date

Interest
Rate

A-17

Morningside of Athens
1291 Cedar Shoals Drive
Athens, GA 30605

2006

$1,560,026

11/19/2004

9%

A-18

Marsh View Senior Living
7410 Skidaway Road
Savannah, GA 31406

2007

$2,108,378

11/01/2006

8.25%

A-19

Pacific Place
20937 Kane Avenue
Pacific Junction, IA 51561

2005

$848,447

12/31/2001

10%

A-20

West Bridge Care & Rehabilitation
1015 West Summit Street
Winterset, IA 50273

2005

$3,157,928

12/31/2001

10%

A-21

Meadowood Retirement Community
2455 Tamarack Trail
Bloomington, IN 47408

2009

$12,061,814

11/01/2008

8%

A-22

Woodhaven Care Center
510 West 7th Street
Ellinwood, KS 67526

2005

$2,704,674

12/31/2001

10%

A-23

Lafayette at Country Place
690 Mason Headley Road
Lexington, KY 40504

2005

$4,928,052

01/11/2002

10%

A-24

Lexington Country Place
700 Mason Headley Road
Lexington, KY 40504

2005

$8,893,947

01/11/2002

10%

A-25

Intentionally deleted.

 

N/A

N/A

N/A

N/A

A-26

Intentionally deleted.

 

N/A

N/A

N/A

N/A

A-27

HeartFields at Bowie
7600 Laurel Bowie Road
Bowie, MD 20715

2005

$2,436,102

10/25/2002

10%

A-28

HeartFields at Frederick
1820 Latham Drive
Frederick, MD 21701

2005

$2,173,971

10/25/2002

10%

A-29

Intentionally deleted.

 

N/A

N/A

N/A

N/A

A-30

Intentionally deleted.

 

N/A

N/A

N/A

N/A

A-31

Morys Haven
1112 15th Street
Columbus, NE 68601

2005

$2,440,714

12/31/2001

10%

A-32

Intentionally deleted.

 

N/A

N/A

N/A

N/A

A-33

Wedgewood Care Center
800 Stoeger Drive
Grand Island, NE 68803

2005

$4,000,565

12/31/2001

10%

A-34

Intentionally deleted.

 

N/A

N/A

N/A

N/A

A-35

Crestview Healthcare Center
1100 West First Street
Milford, NE 68405

2005

$2,284,407

12/31/2001

10%

A-36

Utica Community Care Center
1350 Centennial Avenue
Utica, NE 68456

2005

$1,950,325

12/31/2001

10%

A-37

Leisure Park
1400 Route 70
Lakewood, NJ 08701

2005

$14,273,446

01/07/2002

10%

A-38

Franciscan Manor
71 Darlington Road

2006

$4,151,818

10/31/2005

9%

 



 

Exhibit

Property Address

Base Gross Revenues
(Calendar Year)

Base Gross Revenues
(Dollar Amount)

Commencement
Date

Interest
Rate

 

Patterson Township

Beaver Falls, PA  15010

 

 

 

 

A-39

Mount Vernon of Elizabeth

145 Broadlawn Drive

Elizabeth, PA  15037

2006

$2,332,574

10/31/2005

9%

A-40

Overlook Green

5250 Meadowgreen Drive

Whitehall, PA  15236

2006

$3,878,300

10/31/2005

9%

A-41

Myrtle Beach Manor

9547 Highway 17 North

Myrtle Beach, SC  29572

2005

$6,138,714

01/11/2002

10%

A-42

Morningside of Anderson

1304 McLees Road

Anderson, SC  29621

2006

$1,381,775

11/19/2004

9%

A-43

Heritage Place at Boerne

120 Crosspoint Drive

Boerne, TX  78006

2009

$1,469,683

02/07/2008

8%

A-44

Forum at Park Lane

7831 Park Lane

Dallas, TX  75225

2005

$13,620,931

01/11/2002

10%

A-45

Heritage Place at Fredericksburg

96 Frederick Road

Fredericksburg, TX  78624

2009

$1,386,771

02/07/2008

8%

A-46

Greentree Health &

Rehabilitation Center

70 Greentree Road

Clintonville, WI  54929

2005

$3,038,761

12/31/2001

10%

A-47

Pine Manor Health Care Center

Village of Embarrass

1625 East Main Street

Clintonville, WI  54929

2005

$4,337,113

12/31/2001

10%

A-48

ManorPointe - Oak Creek

Independent Senior Apartments

and Meadowmere - Mitchell

Manor - Oak Creek

700 East Stonegate Drive and

701 East Puetz Road

Oak Creek, WI  53154

2009

$4,189,440

01/04/2008

8%

A-49

River Hills West Healthcare Center

321 Riverside Drive

Pewaukee, WI  53072

2005

$9,211,765

12/31/2001

10%

A-50

The Virginia Health &

Rehabilitation Center

1451 Cleveland Avenue

Waukesha, WI  53186

2005

$6,128,045

12/31/2001

10%

A-51

Reserve at Greenbriar

1005 Elysian Place

Chesapeake, Virginia

2012

$2,508,269

06/20/2011

7.5%

A-52

Palms at St. Lucie West

501 N.W. Cashmere Boulevard

Port St. Lucie, Florida

2012

$2,903,642

07/22/2011

7.5%

A-53

Forum at Desert Harbor

13840 North Desert Harbor Drive

Peoria, AZ 85381

2005

$9,830,918

01/11/2002

10.0%

A-54

Forum at Tucson
2500 North Rosemont Blvd.

Tucson, AZ 85712

2005

$13,258,998

01/11/2002

10.0%

 



 

Exhibit

Property Address

Base Gross Revenues
(Calendar Year)

Base Gross Revenues
(Dollar Amount)

Commencement
Date

Interest
Rate

A-55

Park Summit at Coral Springs
8500 Royal Palm Blvd.

Coral Springs, FL 33065

2005

$11,229,677

01/11/2002

10.0%

A-56

Gables at Winchester
299 Cambridge Street

Winchester, MA 01890

2005

$6,937,852

01/11/2002

10.0%

A-57

Forum at Memorial Woods
777 North Post Oak Road

Houston, TX 77024

2005

$19,734,400

01/11/2002

10.0%