- 17 -
3. The 1981 Transactions
a. The 1700 Partnership
1700 Lincoln Limited (the 1700 Partnership) was a Colorado
limited partnership. Hines Colorado Ltd. (Hines Colorado), a
Colorado limited partnership, was the sole general partner of the
1700 Partnership, and ARICO America Realestate Investment Co.
(ARICO), a Nevada corporation operating as a real estate
investment trust, was the sole limited partner of the 1700
Partnership.
b. The Ground Lease
By a lease agreement dated February 5, 1981, LBC leased to
the 1700 Partnership for a term of 70 years (1) land on the south
end of the Lincoln-Sherman block (between Motorbank I and 17th
Avenue) and (2) land on the south end of the Sherman-Grant block
(together, the 1UBC land) (the Ground Lease). The Ground Lease
provided that the 1700 Partnership would, at its own expense,
construct an office tower on the Lincoln-Sherman block (1UBC) and
a parking garage on the Sherman-Grant block (the Parking Garage),
according to the plans and specifications appended to the Ground
Lease. The Ground Lease provided for the payment to LBC of both
a fixed rent and a rent based on the net cash flow generated by
1UBC and the Parking Garage.
Following the execution of the Ground Lease and related
documents, the 1700 Partnership commenced construction of 1UBC,
Page: Previous 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 NextLast modified: May 25, 2011