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CareFirst of Maryland, Inc.
June 30, 2015
Page 2
2.
Financing Capabilities
Please indicate all source(s) of equity and debt for the project, and the dates of any debt maturation during
the Term.
Please describe how the Landlord intends to finance the Tenant Improvement Allowances that
Landlord is willing to provide CareFirst and how Landlord intends to finance the Brokerage Commissions
Landlord is willing to pay to JLL.
Please state whether Landlord will escrow these funds upon request of CareFirst and JLL.
In either case,
please confirm that CareFirst shall have setoff rights for any unpaid amounts of the Tenant Improvement
Allowance and Brokerage Commissions.
Landlord Response: Merritt Properties shall finance the Tenant Improvement Allowance via a
combination of operating cash and a LOC currently held with M&T Bank. Merritt will not
escrow these funds. CareFirst shall not have any setoff rights for any unpaid amounts of Tenant
Improvement Allowance or Brokerage Commissions.
3. Extension Space
CareFirst requests that Merritt respond to its space needs in Owings Mills in the following manner:
•
Please propose a lease extension specifically CareFirst’s currently occupied Merritt buildings at 10800
Red Run Boulevard (59,162 RSF), 10802 Red Run Boulevard (104,000 RSF), as well as 10715 Red Run
Boulevard (28,567 RSF) (together, the “Extension Premises”).
4.
Lease Term
For 10800 and 10802 Red Run Boulevard, CareFirst will evaluate proposals for a new ten (10) year lease term
from and after a Commencement Date of August 1, 2018, following CareFirst’s current lease expiration of July
31, 2018. If appropriate, please detail any economic benefit (Base Rent, Free Rent, Tenant Improvement
Allowance, Rent Escalations, etc.) that could be gained by entering into a new longer term – a 12 or 15 year
lease extension.
Landlord Response: Merritt is proposing a Ten (10) year renewal term commencing August 1,
2018 and expiring July 31, 2028. The proposed rental rate in section 5 shall commence
September 1, 2015 with annual increases thereafter.
For 10715 Red Run Boulevard, CareFirst will evaluate proposals for a new ten (10) year lease term from and
after a Commencement Date of 8/1/18, following CareFirst’s current lease expiration of 7/31/18. CareFirst
will require an option to terminate all or a portion of 10715 Red Run Boulevard upon expiration of the 5
th
lease year.
Landlord Response: Merritt proposes a ten (10) years term commencing August 1, 2018 and
expiring July 31, 2028. CareFirst shall have the option to terminate all or a portion of the
premises located at 10715 Red Run Boulevard upon the expiration of the 5
th
Lease year,
subject to a mutually agreed upon floor plan. CareFirst shall give Merritt twelve (12) months
prior written notice. CareFirst shall pay a termination fee equal to the unamortized tenant
improvements and brokerage commissions, amortized at a rate of 9%.
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