University of Kentucky and Education Realty Trust, Inc.
Draft Ground Lease
Summary of Terms
• Proj ect:
0 Lease of Haggin Field to EDR Lexington LLC 1 (EdR), guaranteed by Education Realty
Trust Operating Partnership, LP, for development, leasehold ownership, and management
of an undergraduate student housing facility
0 Estimated development cost: $25.8 million (100% equity funded by EdR)
0 University shall approve any material changes to plans and specifications
0 Occupancy: August 2013
0 Facilities:
2 buildings
601 double occupancy rooms
Offices for University’s Honors Program and Resident Life staff
Three ‘smart’ classrooms
EdR will seek LEED-Silver certification
• Term:
0 Original Term: 50 years
0 First Renewal Term: 10 years
0 Second Renewal Term: 15 years
0 Both parties must agree to extension(s) of the original term
0 University shall have option to terminate lease upon the 20°h, 30°h, and 40th anniversary
dates upon payment of an early termination fee
0 Expiration of Term:
¤ At expiration of original tenn or first renewal tenn, University shall purchase
facilities at their appraised value or
¤ At expiration of second renewal tenn, University shall purchase facilities at the
greater of:
• Depreciated value or
• $10.00
• Residential rental rates:
0 2013-14 Not to exceed $3,490 per bed per semester
0 2014-15 to 2016-17 Annual rate increase limited to the greater of:
(3-years) a) 3% or
b) percentage rate increase of university-owned housing
0 Effective 2017-18 Annual rate increase limited to the greater of:
a) 4% or
b) 2-yr rolling average increase in consumer price index or
c) percentage rate increase of university-owned housing