[Click here and type return address] REFLECTIONS HALLMARK JEFF DRUM REAL ESTATE DIRECTOR SOUTHEAST 2260WILDWOD LAKE DRIVE SUWANEE, GA 30024 Dear Jeff: Re: Reflections option renewal rent reduction..()44811 September 9,2009 As per our conversations please find enclosed completed lease activity worksheets along with a monthly rent invoice. I am giving you some information about the Plaza which should help in any negotiations: 1. We were the first store to open in the Plaza at the end of October 2005. No other stores opened for several months after that. 2. The center of the Plaza area where we are located is mostly 2/3 stories. There are mostly no tenants on these floors. 3. At the time the center was being leased, 2004, OS, 06 there were not the economic problems we have today and the center should have had more leasing and better merchandising ofthe center. 4. The Center to this day has never had a grand opening and has very few promotions. As the Plaza sits back and is hidden from the street by the tall 3 story Tower. Promos are basically not existent 5. Things to think about on this renewal: a. Take option now with reduced rent and expanded % on excluded items from gross- to end on the same date as original option. This would help cover losses on marked down items without paying % rent on these losses. b. Stay with original option date but lower rents and higher percentages on exclusions from gross rent. c. Do they care if we stay or go-if we don't get reduced occupancy costs we can just walk away-who needs who the most-us or them? d. Take option as in "a" and add another 5 year option Jeff thanks for your help and I look forward to speaking with you soon. Sincerely, ............................
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[Click here and type return address]
REFLECTIONS HALLMARK
JEFF DRUMREAL ESTATE DIRECTOR SOUTHEAST2260WILDWOD LAKE DRIVE
As per our conversations please find enclosed completed lease activity worksheets along with amonthly rent invoice. I am giving you some information about the Plaza which should help in anynegotiations:
1. We were the first store to open in the Plaza at the end of October 2005. No other stores openedfor several months after that.
2. The center of the Plaza area where we are located is mostly 2/3 stories. There are mostly notenants on these floors.
3. At the time the center was being leased, 2004, OS, 06 there were not the economic problems wehave today and the center should have had more leasing and better merchandising ofthe center.
4. The Center to this day has never had a grand opening and has very few promotions. As the Plazasits back and is hidden from the street by the tall 3 story Tower. Promos are basically not existent
5. Things to think about on this renewal:
a. Take option now with reduced rent and expanded % on excluded items from gross- toend on the same date as original option. This would help cover losses on marked downitems without paying % rent on these losses.
b. Stay with original option date but lower rents and higher percentages on exclusionsfrom gross rent.
c. Do they care if we stay or go-if we don't get reduced occupancy costs we can justwalk away-who needs who the most-us or them?
d. Take option as in "a" and add another 5 year option
Jeff thanks for your help and I look forward to speaking with you soon.
FROM (TUE)SEP 1 2009 10:51/ST. 10:51/Ho.7500000413 P
FAXDate: 9/1109
Total # of Pages Sent(including cover sheet)
PLEASE DELIVER TO:
31955·201 North Federal Highway
Pompano Beach, FL 33062Tel: (954) 943-4683
FAX#:
1. Mickey
2.
3.
FROM:
Shana
1.
2.
3.
954-753-7224
954-943-5469
MESSAGE:
Mickey:
September rent breakdown:$ 265.00- Storage Rent$3,957.25- Hallmark Rent
$4,222.25- Total amount due for September
The infonnation contained in this telecopy may be privilegedand/or confidential and is intended only for the use of theperson to whom it is addressed. If the reader of the messageis not the intended reciJ)ient (or such recipient's employee oragent), you are hereby notified not to read, distribute or copythe materials attached hereto without the prior writtenconsent of the sender. If you have received this telecopy inerror, please notify the sender by telephone. Thank you.
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954·943-4683
Retail Real Estate Lease Activity WorksheetFor Regional Malls - Strip - Community Centers
Required Enclosures:1. Copy of Existing Lease (Must have, cannot start without this CODV)
N .Correspondence from Landlord regarding renewal, if any.3. Center Site Plan (Show vour location, anv vacancies and all other tenants)4. Current Profit & Loss Statement
5. Picture of Store Front with signing6. Shopping Center Monthly Invoice