<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-2024-2412
Status: Draft
Governing Jurisdiction: Nebraska

This abstract summarizes the key terms of the fully executed lease agreement between the Landlord, Harrison, Patel and Murphy Properties, and the Tenant, Burns and Sons. 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 2024-05-10.

The subject of this lease concerns the Partial unit 25B in Building 10 at the property located at 389 Zamora Terrace
Maryport, ND 83561. This Warehouse facility consists of approximately 25224 rentable square feet and is designated for the purpose of General office and ancillary administrative functions..

The lease commencement is scheduled for 2024-06-26, establishing an initial term of 5 years. The Tenant's monthly obligation for base rent begins at $117,123.44. This figure is scheduled for an annual increase based on a 4.0% escalation rate. A security deposit of $234,246.88 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 CPI-U Adjustment, not to exceed 4%. Any potential sublease of the premises is permitted subject to standard conditions.

Per section 10.1, Burns and Sons 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 Harrison, Patel and Murphy Properties. Late payments of rent will accrue interest at a rate of 5.7% per annum. Note the existence of a Co-tenancy Failure clause, which can be triggered with 60 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-2024-2412",
  "parties": {
    "lessor_details": {
      "name": "Harrison, Patel and Murphy Properties",
      "entity_type": "Limited Partnership",
      "address": "PSC 2380, Box 5166\nAPO AE 25860"
    },
    "lessee_details": {
      "name": "Burns and Sons",
      "entity_type": "S-Corp"
    }
  },
  "property_details": {
    "address": "389 Zamora Terrace\nMaryport, ND 83561",
    "property_type": "Warehouse",
    "lease_area_description": "Partial unit 25B in Building 10",
    "square_footage_sqft": 25224
  },
  "lease_terms": {
    "effective_date": "2024-05-10",
    "commencement_date": "2024-06-26",
    "initial_term_months": 60,
    "option_to_renew": [
      {
        "option_number": 1,
        "duration_months": 24,
        "renewal_rate_adjustment": "CPI-U Adjustment, not to exceed 4%"
      }
    ],
    "requires_landlord_consent_for_sublease": false,
    "termination_clauses": [
      {
        "clause_type": "Co-tenancy Failure",
        "notice_period_days": 60,
        "penalty_details": "6 months' rent plus unamortized transaction costs."
      },
      {
        "clause_type": "Tenant Early Termination Option",
        "notice_period_days": 60,
        "penalty_details": "12 months' rent plus unamortized transaction costs."
      }
    ]
  },
  "financial_terms": {
    "base_rent_details": {
      "initial_monthly_rent_usd": 117123.44,
      "annual_escalation_rate_percent": 4.0,
      "escalation_frequency": "Annually"
    },
    "additional_rent_components": [
      {
        "component_name": "Operating Expenses (CAM)",
        "basis": "Pro Rata Share (24.73%)",
        "estimated_monthly_amount_usd": 17568.52
      },
      {
        "component_name": "Property Taxes",
        "basis": "Pro Rata Share (22.04%)",
        "estimated_monthly_amount_usd": 11712.34
      },
      {
        "component_name": "HVAC Maintenance Contract",
        "basis": "Fixed Annual Fee"
      }
    ],
    "security_deposit_usd": 234246.88,
    "late_payment_interest_rate_percent": 5.7
  },
  "permitted_use": "General office and ancillary administrative functions.",
  "governing_law_state": "Nebraska",
  "document_status": "Draft",
  "insurance_requirements": [
    {
      "coverage_type": "Commercial General Liability",
      "minimum_coverage_amount_usd": 2000000,
      "named_insureds_required": [
        "Harrison, Patel and Murphy Properties"
      ]
    },
    {
      "coverage_type": "Property (All Risk/Special Form)",
      "minimum_coverage_amount_usd": 25000000,
      "named_insureds_required": [
        "Harrison, Patel and Murphy Properties",
        "Douglas, Smith and Madden Mortgage Corp."
      ]
    }
  ]
}