Purchase and Sale Agreement (2005)Full Document 

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PURCHASE AND SALE AGREEMENT

 

BETWEEN AND AMONG

 

WELLS OPERATING PARTNERSHIP, L.P.,

WELLS FUND XII – REIT JOINT VENTURE PARTNERSHIP,

WELLS FUND XIII – REIT JOINT VENTURE PARTNERSHIP,

WELLS REIT, LLC – VA I,

WELLS BREA I, L.P.,

WESTLAKE WELLS, L.P.,

DANACQ FARMINGTON HILLS LLC,

DANACQ KALAMAZOO LLC,

WELLS – EDS DES MOINES, L.P.,

AND

THE WELLS FUND XI-FUND XII-REIT JOINT VENTURE,

 

AS SELLERS

 

AND

 

LEXINGTON CORPORATE PROPERTIES TRUST,

 

AS PURCHASER

 

February 25, 2005


TABLE OF CONTENTS

 

ARTICLE 1. DEFINITIONS    3
ARTICLE 2. PURCHASE AND SALE    40
     2.1.    Agreement to Sell and Purchase the Wells Affiliate Properties    40
     2.2.    Agreement to Sell and Purchase the Wells OP Properties    41
     2.3.    Permitted Exceptions    41
     2.4.    Earnest Money    41
     2.5.    Purchase Price    42
     2.6.    Independent Contract Consideration    42
     2.7.    Closing    42
ARTICLE 3. PURCHASER’S INSPECTION AND REVIEW RIGHTS    44
     3.1.    Due Diligence Inspections    44
     3.2.    Deliveries to Purchaser by Sellers; Purchaser’s Access to Property Records of Sellers    45
     3.3.    Condition of the Properties    48
     3.4.    Title and Survey    49
     3.5.    Service Contracts    50
     3.6.    Confidentiality    50

ARTICLE 4. REPRESENTATIONS, WARRANTIES AND OTHER AGREEMENTS

   51
     4.1.    Representations and Warranties of Seller    51
     4.2.    Knowledge Defined    59
     4.3.    Covenants and Agreements of Sellers    59
     4.4.    Representations and Warranties of Purchaser    66
     4.5    Covenants and Agreements of Purchaser    67

ARTICLE 5. CLOSING DELIVERIES, CLOSING COSTS AND PRORATIONS

   68
     5.1.    Sellers’ Closing Deliveries    68
     5.2.    Purchaser’s Closing Deliveries    74
     5.3.    Closing Costs    76
     5.4.    Prorations and Credits    77

ARTICLE 6. CONDITIONS TO CLOSING

   80
     6.1.    Conditions Precedent to Purchaser’s Obligations    80
     6.2.    Conditions Precedent to Seller’s Obligations    84
     6.3.    Conditions Precedent to Purchase and Sale of Certain Properties    85


ARTICLE 7. CASUALTY AND CONDEMNATION

   85
     7.1.    Casualty    85
     7.2.    Condemnation    86

ARTICLE 8. DEFAULT AND REMEDIES

   87
     8.1.    Purchaser’s Default    87
     8.2.    Seller’s Default    88
ARTICLE 9. ASSIGNMENT    88
     9.1.    Assignment    88

ARTICLE 10. BROKERAGE COMMISSIONS

   89
     10.1.    Broker    89

ARTICLE 11. INDEMNIFICATION

   90
     11.1.    Indemnification by Sellers    90
     11.2.    Indemnification by Purchaser    90
     11.3.    Limitations on Indemnification    91
     11.4.    Survival    91
     11.5.    Indemnification as Sole Remedy    91

ARTICLE 12. MISCELLANEOUS

   92
     12.1.    Notices    92
     12.2    Possession    93
     12.3    Time Periods    93
     12.4    Publicity    93
     12.5    Discharge of Obligations    93
     12.6    Severability    93
     12.7    Construction    94
     12.8    Sale Notification Letters    94
     12.9    Access to Records Following Closing    94
     12.10    Submission to Jurisdiction    94
     12.11    General Provisions    95
     12.12    Like-Kind Exchange by Sellers    95
     12.13    Attorney’s Fees    96
     12.14    Counterparts    96
     12.15    Effective Agreement    96

 

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SCHEDULE OF EXHIBITS

 

Exhibit “A-1”

   Description of Wells OP Lands

Exhibit “A-2”

   Description of Wells Affiliate Lands

Exhibit “A-3”

   Description of Wells OP Leasehold Interest Lands

Exhibit “B”

   List of Personal Property

Exhibit “B-1”

   List of Property Excluded from Wells OP Personal Property

Exhibit “B-2”

   List of Property Excluded from Wells Affiliate Personal Property

Exhibit “C”

   List of Existing Commission Agreements

Exhibit “D”

   List of Associations and Declarations of Covenants, Conditions, Easements and Restrictions

Exhibit “E”

   Form of Escrow Agreement

Exhibit “F”

   List of Existing Environmental Reports

Exhibit “G”

   List of Existing Surveys

Exhibit “H”

   Forms of Ground Lessor Estoppel Certificates

Exhibit “I”

   List of Leases

Exhibit “J”

   List of Letters of Credit

Exhibit “K-1”

   Title Exceptions for Wells OP Lands

Exhibit “K-2”

   Title Exceptions for Wells Affiliate Lands

Exhibit “K-3”

   Title Exceptions for Wells OP Leasehold Interest Lands

Exhibit “L”

   List of Service Contracts

Exhibit “M”

   Form of Tenant Estoppel Certificate

Exhibit “N”

   Allocation of Earnest Money to Properties

Exhibit “O”

   List of Purchase Prices for Each Property

 

Schedule of Exhibits

Page 1


Exhibit “P”

   List of Exceptions

Exhibit “Q”

   List of Third Party Management Agreements

Exhibit “R”

   Property Tax Appeals

Exhibit “S”

   List of Knowledge Parties

Exhibit “T”

   Form of Lease Guarantor Estoppel Certificate

Exhibit “U”

   Obligations as to Certain Leasing Commission Obligations

Exhibit “V”

   List of Additional Matters for Confirmation in Estoppel Certificates

Exhibit “W”

   Excluded Computer Software

Exhibit “X”

   List of Security Deposits

Exhibit “Y”

   Form of Highwoods Estoppel Certificate

Exhibit “Z”

   Form of Pending Kerr McGee Sewer Easement

Exhibit “AA”

   Form of Pending Capital One Lake Easement Deed

Exhibit “BB”

   Intentionally Deleted

Exhibit “CC”

   Form of Second Amendment to Gartner Office Lease

Exhibit “DD”

   Form of Letter Amendment to ISS Building III Lease

Exhibit “EE”

   Alstom Power Property / French Drain Work

Exhibit “FF”

   Gartner Parking Plans

 

Schedule of Exhibits

Page 2


SCHEDULE OF CLOSING DOCUMENTS

 

Schedule 1

   Form of Assignment and Assumption of ASML Sub-Ground Lease

Schedule 2

   Form of Assignment and Assumption of Ingram Micro Bond Lease

Schedule 3

   Form of Assignment and Assumption of ISS Bond Lease

Schedule 4

   Form of Assignment and Assumption of Leases and Security Deposits and Leasing Commission Obligations arising after Closing

Schedule 5

   Form of Assignment and Assumption of ASML Sublease

Schedule 6

   Form of Assignment and Assumption of Ingram Micro Sublease

Schedule 7

   Form of Assignment and Assumption of ISS Subleases

Schedule 8

   Form of Bill of Sale to Personal Property

Schedule 9

   Form of Assignment and Assumption of Ingram Micro Loan Documents

Schedule 10

   Form of Assignment and Assumption of ISS Bond Documents

Schedule 11

   Form of Assignment and Assumption of Service Contracts

Schedule 12

   Form of General Assignment of Seller’s Interest in Intangible Property

Schedule 13

   Form of Seller’s Affidavit (for Purchaser’s Title Insurance Purposes)

Schedule 14

   Form of Seller’s Certificate (as to Seller’s Representations and Warranties)

Schedule 15

   Form of Seller’s FIRPTA Affidavit

Schedule 16

   Form of Ingram Micro Bond Certificate

Schedule 17

   Form of ISS Home Office Payment Agreement

Schedule 18

   Form of Assignment and Assumption of Agreements Regarding ISS Letters of Credit

Schedule 19

   Form of Assignment of Letters of Credit

Schedule 20

   Forms of Seller’s Estoppels

Schedule 21

   Form of Assignment and Assumption of Highwoods Rental Guaranty Agreements


Schedule 22

   Form of Assignment and Assumption of Pacificare Escrow Agreement

Schedule 23

   Form of Purchaser’s Certificate (as to Purchaser’s Representations and Warranties)

 

Schedule of Closing Documents

Page 2


PURCHASE AND SALE AGREEMENT

 

THIS PURCHASE AND SALE AGREEMENT (the “Agreement”), made and entered into this 25th day of February, 2005, by and among WELLS OPERATING PARTNERSHIP, L.P., a Delaware limited partnership (“Wells OP”), WELLS FUND XII - REIT JOINT VENTURE PARTNERSHIP, a Georgia general partnership having Wells Real Estate Fund XII, L.P., a Georgia limited partnership and Wells OP as all of its general partners (“Wells Fund XII - REIT JV”), WELLS FUND XIII - REIT JOINT VENTURE PARTNERSHIP, a Georgia general partnership having Wells Real Estate Fund XIII, L.P., a Georgia limited partnership and Wells OP as all of its general partners (“Wells Fund XIII-REIT JV”), WELLS REIT, LLC, VA I, a Georgia limited liability company having Wells OP as its sole member (“Wells Virginia REIT”), WELLS BREA I, L.P., a Delaware limited partnership having Wells Brea, LLC, a Delaware limited liability company as its sole general partner (“Wells Brea”), WESTLAKE WELLS, L.P., a Texas limited partnership having Wells Real Estate Westlake, TX, LLC, a Delaware limited liability company as its sole general partner (“Wells Westlake”), DANACQ FARMINGTON HILLS LLC, a Delaware limited liability company, having Wells OP as its sole member (“Wells Farmington Hills”), DANACQ KALAMAZOO LLC, a Delaware limited liability company having Wells OP as its sole member (“Wells Kalamazoo”), WELLS - EDS DES MOINES, L.P., a Texas limited partnership having Wells Real Estate - Des Moines, IA, LLC, a Delaware limited liability company as its sole general partner (“Wells EDS”), THE WELLS FUND XI - FUND XII - REIT JOINT VENTURE, a Georgia general partnership having Wells Real Estate Fund XI, L.P., a Georgia limited partnership, Wells Real Estate Fund XII, L.P., a Georgia limited partnership and Wells OP as all of its general partners (“Wells Funds XI and XII REIT JV”) (Wells OP, Wells Fund XII - REIT JV, Wells Fund XIII - REIT JV, Wells Virginia REIT, Wells Brea, Wells Westlake, Wells Farmington Hills, Wells Kalamazoo, Wells EDS, and Wells Funds XI and XII REIT JV being collectively referred to as “Sellers” and sometimes individually referred to as “Seller”) and LEXINGTON CORPORATE PROPERTIES TRUST, a Maryland statutory real estate investment trust (together with its permitted successors and assigns, “Purchaser”).

 

W I T N E S S E T H:

 

WHEREAS, Wells OP (doing business in the State of North Carolina as Wells Operating Partnership, Limited Partnership) desires to sell its fee simple estate in certain improved real property defined herein as the “Allstate Property” located in Decatur Township, Marion County, Indiana; the “AT&T (PA) Property” located in Susquehanna Township, Dauphin County, Pennsylvania; the “Capital One Property” located in the Three Chopt District, Henrico County, Virginia; the “Dial Corporation Property” located at 15501 N. Dial Boulevard, Scottsdale, Maricopa County, Arizona; the “Experian Property” located in the City of Allen, Collin County, Texas; the “Gartner Surface Parking Property” located in Fort Myers, Lee County, Florida; the “IKON Property” located at 810 and 820 Gears Road, Harris County, Texas; the “Kerr McGee Property” located in Harris County, Texas; the “Kraft Foods Property” located in Forsyth County, Georgia; the “Lucent Property” located in Wake County, North Carolina; the “Metris


Property” located in the City of Tulsa, Tulsa County, Oklahoma; the “Nissan Property” located in the City of Irving, Dallas County, Texas; the “Pacificare Property” located in the City of San Antonio, Bexar County, Texas; the “Transocean Property” located in Harris County, Texas; and the “Travelers Express Property” located in Jefferson County, Colorado, together with certain related personal and intangible property, and Purchaser desires to purchase such real, personal and intangible property; and

 

WHEREAS, Wells OP also desires to sell its leasehold estates in certain improved real property and associated improvements defined herein as the “ASML Property” located in Maricopa County, Arizona; the “Ingram Micro Property” located in Millington, Tennessee; and the “ISS Property” located in the City of Atlanta, Fulton County, Georgia, together with certain related personal and intangible property, and Purchaser desires to purchase such real, personal and intangible property; and

 

WHEREAS, Wells Fund XII - REIT JV desires to sell its fee simple estate in certain improved real property defined herein as the “AT&T (OK) Property” located in Oklahoma County, Oklahoma, together with certain related personal and intangible property, and Purchaser desires to purchase such real, personal and intangible property; and

 

WHEREAS, Wells Fund XIII - REIT JV desires to sell its fee simple state in certain improved real property defined herein as the “Americredit Property” located in Clay County, Florida, and the “John Wiley Property” located in Delaware Township, Hamilton County, Indiana; together with certain related personal and intangible property, and Purchaser desires to purchase such real, personal and intangible property; and

 

WHEREAS, Wells Virginia REIT desires to sell its fee simple estate in certain improved real property defined herein as the “Alstom Power Property” located in the Clover Hill District, Chesterfield County, Virginia, together with certain related personal and intangible property, and Purchaser desires to purchase such real, personal and intangible property; and

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