Purchase and Sale Agreement (2005)Full Document 

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TO FORM 10-K OF

WELLS REAL ESTATE FUND VIII, L.P.

 

 

 

PURCHASE AND SALE AGREEMENT

 

BY AND BETWEEN

 

FUND VIII-IX REIT JOINT VENTURE

a Georgia joint venture,

 

AS SELLER

 

AND

 

CTA, LP,

a California limited partnership,

 

AS PURCHASER

 

FOR

 

15253 Bake Parkway

Irvine, California

 

Dated as of November 19, 2004


Table of Contents

 

               Page

ARTICLE I PURCHASE AND SALE

   1
     1.1   

Agreement of Purchase and Sale

   1
     1.2   

Property Defined

   2
     1.3   

Permitted Exceptions

   2
     1.4   

Purchase Price

   2
     1.5   

Payment of Purchase Price

   2
     1.6   

Earnest Money

   2
     1.7   

Delivery to Escrow Agent

   2

ARTICLE II TITLE AND SURVEY

   2
     2.1   

Title Examination; Commitment for Title Insurance

   2
     2.2   

Survey

   3
     2.3   

[Intentionally Omitted].

   3
     2.4   

Conveyance of Title

   3
     2.5   

Pre-Closing “Gap” Title Defects

   3

ARTICLE III INSPECTION PERIOD

   4
     3.1   

Right of Inspection

   4
     3.2   

Tenant Estoppel

   4
     3.3   

Right of Termination

   4

ARTICLE IV CLOSING

   5
     4.1   

Time and Place

   5
     4.2   

Seller’s Obligations at Closing

   5
     4.3   

Purchaser’s Obligations at Closing

   6
     4.4   

Escrow Agent’s Obligations at Closing

   7
     4.5   

Credits and Prorations.

   7
     4.6   

Closing Costs

   9
     4.7   

Conditions Precedent to Obligation of Purchaser

   10
     4.8   

Conditions Precedent to Obligation of Seller

   10

ARTICLE V REPRESENTATIONS, WARRANTIES AND COVENANTS

   11
     5.1   

Representations and Warranties of Seller

   11
     5.2   

Knowledge Defined

   12
     5.3   

Survival of Seller’s Representations and Warranties

   12
     5.4   

Covenants of Seller

   12
     5.5   

Representations and Warranties of Purchaser

   13
     5.6   

Survival of Purchaser’s Representations and Warranties

   13
     5.7   

Covenants of Purchaser

   13
     5.8   

Post-Closing Covenants of Seller.

   13

ARTICLE VI DEFAULT

   15
     6.1   

Default by Purchaser

   15
     6.2   

Default by Seller

   15

 

 

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Table of Contents

(continued)

 

     Page

ARTICLE VII RISK OF LOSS

   16
     7.1       

Minor Damage

   16
     7.2       

Major Damage

   16
     7.3       

Definition of “Major” Loss or Damage

   16

ARTICLE VIII COMMISSIONS

   17
     8.1       

Brokerage Commissions

   17

ARTICLE IX DISCLAIMERS AND WAIVERS

   17
     9.1       

No Reliance on Documents

   17
     9.2       

Disclaimers

   17
     9.3       

Effect and Survival of Disclaimers

   19

ARTICLE X MISCELLANEOUS

   19
     10.1     

Confidentiality

   19
     10.2     

Public Disclosure

   19
     10.3     

Discharge of Obligations

   19
     10.4     

Assignment

   19
     10.5     

Notices

   20
     10.6     

Binding Effect

   20
     10.7     

Modifications

   21
     10.8     

Tenant Notification Letter

   21
     10.9     

Calculation of Time Periods

   21
     10.10   

Successors and Assigns

   21
     10.11   

Entire Agreement

   21
     10.12   

Further Assurances

   21
     10.13   

Reporting Requirements

   21
     10.14   

Counterparts

   21
     10.15   

1031 Exchange

   22
     10.16   

Severability

   22
     10.17   

Applicable Law

   22
     10.18   

No Third Party Beneficiary

   22
     10.19   

Exhibits and Schedules

   22
     10.20   

Captions

   23
     10.21   

Construction

   23
     10.22   

Termination of Agreement

   23
     10.23   

Survival

   23
     10.24   

Escrow Agent’s Agreement

   23
     10.25   

Natural Hazard Disclosure Statement

   23
     10.26   

Time of the Essence

   24

 

ii


PURCHASE AND SALE AGREEMENT

 

THIS PURCHASE AND SALE AGREEMENT (the “Agreement”) is made as of the 19th day of November, 2004 (the “Effective Date”) by and between Fund VIII-IX REIT Joint Venture, a Georgia joint venture (“Seller”), having an office c/o Wells Real Estate Funds, 6200 The Corners Parkway, Norcross, Georgia 30092, and CTA, LP, a California limited partnership (“Purchaser”), having an office at P.O. Box 440 Sunset Beach, California 90742.

 

ARTICLE I

 

PURCHASE AND SALE

 

1.1 Agreement of Purchase and Sale. Subject to the terms and conditions hereinafter set forth, Seller agrees to sell and convey and Purchaser agrees to purchase the following:

 

(a) that certain tract or parcel of land situated in Orange County, California, more particularly described on Exhibit A attached hereto and made a part hereof, together with all and singular the rights and appurtenances pertaining to such property, including any right, title and interest of Seller in and to adjacent streets, alleys or rights-of-way (the property described in clause (a) of this Section 1.1 being herein referred to collectively as the “Land”);

 

(b) the buildings, structures, fixtures and other improvements on the Land, including specifically, without limitation, the certain office building located thereon having a street address of 15253 Bake Parkway, Irvine, California (the property described in clause (b) of this Section 1.1 being herein referred to collectively as the “Improvements”);

 

(c) all of Seller’s right, title and interest in and to all tangible personal property upon the Land or within the Improvements, including specifically, without limitation, appliances, furniture, carpeting, draperies and curtains, tools and supplies, and other items of personal property (excluding cash) used exclusively in connection with the operation of the Land and the Improvements and only as specifically described on Exhibit B attached hereto and made a part hereof (the property described in clause (c) of this Section 1.1 being herein referred to collectively as the “Personal Property”);

 

(d) all of Seller’s right, title and interest in and to that certain lease more fully described on Exhibit C attached hereto and made a part hereof (the “Lease”); and

 

(e) all of Seller’s right, title and interest in and to (i) all assignable contracts and agreements (collectively, the “Operating Agreements”) listed and described on Exhibit D (the “Operating Agreements Schedule”) attached hereto and made a part hereof, relating to the upkeep, repair, maintenance or operation of the Land, Improvements or Personal Property which will extend beyond the date of Closing (as such term is defined in Section 4.1 hereof), including specifically, without limitation, all assignable equipment leases, (ii) all assignable warranties and guaranties (expressed or implied) issued to Seller in connection with the Improvements (including any issued in connection with the tenant improvement work described in that certain Work Letter Agreement attached as Exhibit B to the Lease) or the Personal Property, and (iii) any plans and specifications for the Improvements (the property described in this Section 1.1(e) being sometimes herein referred to collectively as the “Intangibles”).

 

1


1.2 Property Defined. The Land, the Improvements, the Personal Property, the Lease and the Intangibles are hereinafter sometimes referred to collectively as the “Property.”

 

1.3 Permitted Exceptions. The Property shall be conveyed subject to the matters which are, or are deemed to be, Permitted Exceptions pursuant to Article II hereof (herein referred to collectively as the “Permitted Exceptions”).

 

1.4 Purchase Price. Seller is to sell and Purchaser is to purchase the Property for a total of twelve million four hundred thousand dollars ($12,400,000) (the “Purchase Price”).

 

1.5 Payment of Purchase Price. The Purchase Price, as increased or decreased by prorations and adjustments as herein provided, shall be payable in full at Closing in cash by wire transfer of immediately available federal funds to a bank account designated by Escrow Agent in writing to Purchaser prior to the Closing. Said funds shall be so deposited at least one (1) business day prior to the date of Closing.

 

1.6 Earnest Money. Purchaser has previously deposited with Farmers & Merchants Bank (the “Escrow Agent”), having its office at 302 Pine Avenue, Long Beach, California 90802, the sum of five hundred thousand dollars ($500,000) (the “Earnest Money”). The Escrow Agent shall hold the Earnest Money in an interest-bearing account in accordance with the terms and conditions of an escrow agreement entered into among Seller, Purchaser and Escrow Agent simultaneously with the execution of this Agreement. All interest accruing on such sums shall become a part of the Earnest Money and shall be distributed as Earnest Money in accordance with the terms of this Agreement. Upon the Purchaser’s receipt of the Estoppel Certificate (as defined below), the Earnest Money shall be non-refundable to Purchaser except as expressly set forth in this Agreement.

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