In early April Apple signed a lease for property on Chicago’s north side, and now lease documents filed with the Cook County Recorder indicate some of the document’s provisions. Apple filed a “Memorandum of Ground Lease” and “Subordination, Non-Disturbance and Attornment Agreement” with the Recorder’s office, essentially making public its legal and financial obligations on the property known officially as 801 W. North Avenue. The full lease between Apple and property trustee Standard Bank and Trust Company isn’t filed with the Recorder, and hasn’t been made public. The lease cost also isn’t mentioned, but local sources say it’s $700,000 a year. The public documents state that Apple has an initial 10-year lease, with the option to extend it by two, five-year terms. The company also has the right of first purchase on the property.The lease, signed during the first week of April, has a slightly complicated definition of its commencement date–it’s the earlier of two dates: the day of the store’s grand opening or 10 months after “delivery” of the premises to Apple. This provision sets a firm date for when lease payments begin, encouraging Apple to complete construction and open the store sooner than later.
However, there’s another condition. If the commencement date occurs between the “first Monday preceding Thanksgiving Day through the following January 31st,” the lease states, “it shall be postponed until the earlier of February 1 or the date Tenant opens for business to the public from its store on the Premises.” This section seems to be related to Apple’s preference for opening stores in the weeks just before the busy holiday shopping seasons, which begins on the day after Thanksgiving.
Under the second provision, if construction can’t permit a grand opening before Monday, November 23rd, Apple is allowed to postpone making lease payments until it opens the store, or on February 1, 2010 at the latest.
A second document sets out certain financial and legal conditions among Apple, the property owner, and The Bank of Commerce, which holds a $2,730,000 loan on the property.
Both documents were signed by Apple CFO Peter Oppenheimer.
Download (pdf) the two documents.
E-mail this story
Related posts:
Loading ...