<format type="json">{lease_id: string, parties: {lessor_details: {name: string, entity_type: string, address: string optional}, lessee_details: {name: string, entity_type: string, address: string optional}}, property_details: {address: string, property_type: string, square_footage_sqft: number optional, lease_area_description: string}, lease_terms: {effective_date: date, commencement_date: date, initial_term_months: number, option_to_renew: list[{option_number: number, duration_months: number, notice_period_days: number optional, renewal_rate_adjustment: string}], termination_clauses: list[{clause_type: string, notice_period_days: number, penalty_details: string}] optional, requires_landlord_consent_for_sublease: boolean}, financial_terms: {base_rent_details: {initial_monthly_rent_usd: number, annual_escalation_rate_percent: number, escalation_frequency: string}, additional_rent_components: list[{component_name: string, basis: string, estimated_monthly_amount_usd: number optional}], security_deposit_usd: number, late_payment_interest_rate_percent: number optional}, insurance_requirements: list[{coverage_type: string, minimum_coverage_amount_usd: number, named_insureds_required: list[string]}] optional, permitted_use: string, governing_law_state: string, document_status: string}</format> <data>INTERNAL MEMORANDUM - LEASE ABSTRACT

Reference ID: LSE-COM-2023-1487
Status: Under Review
Governing Jurisdiction: Arkansas

This abstract summarizes the key terms of the fully executed lease agreement between the Landlord, Brown-Durham Inc., and the Tenant, Higgins-Allison. The team is preparing for the quarterly portfolio review next month, so please ensure all financial models are updated with this data. The lease agreement was made effective as of 2023-09-25.

The subject of this lease concerns the Entire suite 26 in Building 9 at the property located at 8076 Brad Springs
North Haley, VT 89530. This Retail facility consists of approximately 14691 rentable square feet and is designated for the purpose of Professional services and ancillary administrative functions..

The lease commencement is scheduled for 2023-12-16, establishing an initial term of 10 years. The Tenant's monthly obligation for base rent begins at $65,179.07. This figure is scheduled for an annual increase based on a 4.0% escalation rate. A security deposit of $65,179.07 has been furnished by the Tenant.

The Tenant holds an option to extend the lease for an additional 24 months. During any such renewal, the rent will be adjusted according to Fair Market Value. Any potential sublease of the premises requires Landlord's explicit consent.

Per section 10.1, Higgins-Allison is required to maintain, at minimum, a Commercial General Liability policy of $2,000,000. The certificate of insurance must name all parties as stipulated, including Brown-Durham Inc.. Late payments of rent will accrue interest at a rate of 6.5% per annum. Note the existence of a Co-tenancy Failure clause, which can be triggered with 180 days' notice and involves a penalty structured as 6 months' rent plus unamortized transaction costs.

Additional rent provisions for pass-throughs like Operating Expenses and Property Taxes are based on the tenant's pro rata share. Further details can be found in the full agreement document stored in the central repository. Please complete your review by end of week.</data>
{
  "lease_id": "LSE-COM-2023-1487",
  "parties": {
    "lessor_details": {
      "name": "Brown-Durham Inc.",
      "entity_type": "Limited Partnership",
      "address": "61567 Daniel Plaza Suite 819\nSouth Mary, CO 02155"
    },
    "lessee_details": {
      "name": "Higgins-Allison",
      "entity_type": "Corporation"
    }
  },
  "property_details": {
    "address": "8076 Brad Springs\nNorth Haley, VT 89530",
    "property_type": "Retail",
    "lease_area_description": "Entire suite 26 in Building 9",
    "square_footage_sqft": 14691
  },
  "lease_terms": {
    "effective_date": "2023-09-25",
    "commencement_date": "2023-12-16",
    "initial_term_months": 120,
    "option_to_renew": [
      {
        "option_number": 1,
        "duration_months": 24,
        "renewal_rate_adjustment": "Fair Market Value"
      },
      {
        "option_number": 2,
        "duration_months": 60,
        "renewal_rate_adjustment": "Fixed 3% annual increase"
      }
    ],
    "requires_landlord_consent_for_sublease": true,
    "termination_clauses": [
      {
        "clause_type": "Co-tenancy Failure",
        "notice_period_days": 180,
        "penalty_details": "6 months' rent plus unamortized transaction costs."
      }
    ]
  },
  "financial_terms": {
    "base_rent_details": {
      "initial_monthly_rent_usd": 65179.07,
      "annual_escalation_rate_percent": 4.0,
      "escalation_frequency": "Annually"
    },
    "additional_rent_components": [
      {
        "component_name": "Operating Expenses (CAM)",
        "basis": "Pro Rata Share (15.83%)",
        "estimated_monthly_amount_usd": 9776.86
      },
      {
        "component_name": "Property Taxes",
        "basis": "Pro Rata Share (6.91%)",
        "estimated_monthly_amount_usd": 6517.91
      },
      {
        "component_name": "HVAC Maintenance Contract",
        "basis": "Fixed Annual Fee"
      }
    ],
    "security_deposit_usd": 65179.07,
    "late_payment_interest_rate_percent": 6.5
  },
  "permitted_use": "Professional services and ancillary administrative functions.",
  "governing_law_state": "Arkansas",
  "document_status": "Under Review",
  "insurance_requirements": [
    {
      "coverage_type": "Commercial General Liability",
      "minimum_coverage_amount_usd": 2000000,
      "named_insureds_required": [
        "Brown-Durham Inc."
      ]
    },
    {
      "coverage_type": "Property (All Risk/Special Form)",
      "minimum_coverage_amount_usd": 5000000,
      "named_insureds_required": [
        "Brown-Durham Inc.",
        "Reed, Perkins and Davidson Mortgage Corp."
      ]
    }
  ]
}