Tag Archives: ground lease

The 99 year Ground Lease for the Waldbaum’s Shopping Center

Here’s a makeshift-lease abstract for that infamous 99 year lease we all keep hearing about. Signed in 1983, this is a ground lease for the entire property between The City of Long Beach [lessor] & Long Beach Plaza Corp [Lessee]. There is a common misconception how this lease is for the Waldbaum’s itself. Please understand that’s not the case. Waldbaum’s [A&P] is just one of the many tenants in that center.

[UPDATE: According to some of the comments, A&P actually is Long Beach Plaza Corp.]

Take this info for what it is; there could be mistakes. Due to time restraints and boredom, this info is also incomplete. I’ll try to upload a scan of the entire lease as soon as I can.

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LANDLORD: City of long Beach
TENANT: Long Beach Plaza Corp.
TERMS:  Ground Lease for the entire property.
LEASE DATE: May 20, 1983.
AMENDMENT (October 21, 1983): Additional property: Lots 5, 46, 47 block 95. Same terms modifying additional property to lease lease.  $2400 per annum. (There are no other amendments that I know of)

Tenant Pays Basic Rent + Additional Rent (triple net including tax, insurance, maintenance, etc.)

BASIC RENT: 

Equal monthly installments in advance 1st of month

Terms(Signed May 20, 1983) Basic Rent (per annum) Lease Amendment (October 21st, 1983) (per annum)* Total (per annum) paid in equal monthly installments in advance on the 1st of the month
construction period $0.00 $0.00 $0.00
First 5 years after $30,000.00 $2,400.00 $32,400.00
years 6 to 10 $40,000.00 $2,400.00 $42,400.00
years 11 to 15 $50,000.00 $2,400.00 $52,400.00
years 16 to 20 $60,000.00 $2,400.00 $62,400.00
years 21 to 25 $70,000.00 $2,400.00 $72,400.00
years 26 to 30 $80,000.00 $2,400.00 $82,400.00
years 31 to 40 $90,000.00 $2,400.00 $92,400.00
years 41 to 50 $100,000.00 $2,400.00 $102,400.00
years 51 to 60 $110,000.00 $2,400.00 $112,400.00
years 61 to 70 $120,000.00 $2,400.00 $122,400.00
years 71 to 80 $130,000.00 $2,400.00 $132,400.00
years 81 to 90 $140,000.00 $2,400.00 $142,400.00
Remaining $150,000.00 $2,400.00 $152,400.00

ADDITIONAL RENT:

  • Along with the BASIC RENT, tenant also pays ADDITIONAL EXPENSES: Insurance, taxes, permits, fees, obligations, etc. All prorates on a daily basis, 
  • All contesting fees, tax certiorari appeals, rebates,refunds etc. belong to tenant.
  • I didn’t see any mention of  ‘Base Year’ credits. As far as I can tell, Long Beach Plaza Corp. pays 100% of all taxes and additional rent.

ADDITIONAL NOTES:

  • This was a neighborhood development program area. Appropriate for urban renewal ‘project area’
  • Use of Property: First 30 years may only be used for specific plan.
  • Tenant responsible for upkeep. Required to maintain in good repair / good condition.
  • Tenant must provide Generally liability insurance.
  • Indemnity Agreement: Landlord (Long Beach) is held harmless against liabilities, lawsuits, penalties, claims, liens, demands, etc.
  • Tenant may sublease/assign after 5 years term of lease (May 19 1988)
  • Surrender at end of term, property must be in good order, etc.

Lease termination:

  • Tenant to cover cost of restoration if an event (like Sandy) occurs. Landlord can terminate lease if this isn’t obliged.
  • Condemnation: (see scan below)

Screen Shot 2015-06-29 at 10.25.13 AM

  • Termination clause expenses prorated
  • No modification of lease without consent of both parties.
  • Termination of lease. Reason of default. Monetary defaults
  • Default events : failure to pay basic rent 15 day grace period.
  • Tenant has option to terminate lease.

Most of what else is in there is typical stuff you’d find in a blumberg form, I’ll try to get an actual scan of the entire lease as soon as I can.