Fractional Dutch Auctions of Commercial Income-Producing Real Estate Properties - TIC Plan Ownership Syndications

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Due Diligence Documentation "Exhibit C-6"

Contractor Guarantee of Completion & Gross Maximum Upset Price

The following notes are provided pertaining to this exhibit:

  1. What: the Contractor Guarantee of Completion & Gross Maximum Upset Price are the contractor's promise as to a date certain the construction shall be completed and the cost of delivering the completed project.

  2. When: transmitted just prior to the commencement of construction phase activities.

  3. Why: this exhibit provides a quick reference for prospective syndicate buyers/investors as to the projected holding period of the pre-construction phase syndication or a construction phase syndication and a total construction cost.

  4. Where: these limited guarantees provide for a projected starting point and ending point of the construction phase, as the construction phase begins with execution of these exhibits and the construction phase ends with the delivery of the Certificate Of Occupancy (or similar document) together with the completed Construction Punch List.

  5. How: electronic file transfer and review.

  6. What's important: the projected construction period and the projected costs must correspond with those assumptions set forth in the pro forma financial statements presentation (see Exhibit F-5) pertaining to the assumed length of the construction phase and the assumed hard cost of construction.  The total new construction square footage, hard construction cost per square foot and the total cost of construction should match up with the stated conditions of the exhibit.

  7. This exhibit is not required for syndications of existing properties that do not contemplate any new construction.

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