1. CAM Workshop: The Desktop Audit – Part 2
Presented by: Theresa Wecker– Asset Strategies Group, LLC Cindy Headman – Burlington Stores

2. Survey Says … Who took CAM Workshop Part I today?
Who here performs Lease Audits?
Who here manages Small Shop Audits?
Who here manages Big Box Audits?
Do we have any attorneys in the room?
How many years of experience?
CH– each Q will come after a 5 second delay

3. The Agenda We will work in Groups
Please use the handouts for the Examples
Please read, analyze and discuss your options, opinions, corrections and questions you have for the example
Try not to get hung up on details, record them as questions for the Landlord and then move on to the next issue CH

4. Example 1 Calculate the CAM for 2007-2009
You will need to start from 2005, the fixed starting point, to calculate your
You will need to calculate the 4% Cap
You will need to calculate the CPI
You will need to calculate the Actual share
You will need to determine which is less, Actual, CAP, or CPI
Let’s get started…
TW – First we need to calculate the cap. The cap for the 1st year is $2.31 x 5,000 = $11,550 (bullet point 6 on page 2 of handout) so that is the max CAM for Now for 2006, based on the calculation of the 4% and the CPI the CPI is less therefore the CPI number will be used for are as shown above CPI/CAP/CPI. We really don’t need the Actual right now we just needed to calculate the 4% cap and the CPI to move forward.

5. Example 1 (15 Minutes) TW

6. Example 1
TW – First we need to calculate the cap. The cap for the 1st year is $2.31 x 5,000 = $11,550 (bullet point 6 on page 2 of handout) so that is the max CAM for Now for 2006, based on the calculation of the 4% and the CPI the CPI is less therefore the CPI number will be used for are as shown above CPI/CAP/CPI. We really don’t need the Actual right now we just needed to calculate the 4% cap and the CPI to move forward.

7. Example 1 TW

8. Example 2 Audit the CAM Rec. for 2009-2010 Review the Lease
Review the CAM statement vs. Lease
Review the GLA
Review the Partial GL Listing; questions or removable items?
Review prorata share and amounts due
Look at everything you’ve been provided for Example 2
Let’s get started… CH

9. Example 2 (15 Minutes) CH

10. Example 2 CH

11. Example 2 TW

12. Example 2 TW

13. Example 2 CH

14. Example 2 TW

15. Example 2 CH

16. After the Review Discuss with internal business partners - Legal
- Real Estate
Present your claims to the Landlord
Reduce current year escrows CH 16

17. After the Review Presenting Your Claim
Present your claim by Letter /
Do you need to send to Notice address?
Cite Lease sections
Be as clear and as simple as possible
Ask for clarification: is x increase because of (a) or (b)
Explain your assumptions, decisions, questions
Provide your calculation worksheets
Be amicable / Offer to Help Them! TW 17

18. Presenting Your Claim Intro-What and Why-Which docs
Cite language-incl Section #s
Illustrate using calcs
Close asking for more info and prompt response TW
Include contact info, etc – Attach worksheets illustrating your recalcs. 18

19. Presenting Your Claim
Attach worksheets illustrating your recalculations
Answer their Q’s before they ask them
Tell the Landlord what should be provided to remove your claim
Close by asking for a prompt response
Include contact info, etc. CH

20. Presenting Your Claim Your campaign
Keep a log of your contact/correspondence with the Landlord
Helps you keep track of the number of contacts and the time between them
Keeps claims on track & progressing
Respond timely to the Landlord’s information or responses
Refer responses from Landlord’s outside counsel to your in-house counsel CH 20

21. After the Review Negotiating the Recovery
Options for Resolution Depend upon your Company’s policy
Settle on a negotiated amount
Rent credits or refund checks
Consider Concessions: drop some claims for full credit on others
Find solutions, not more issues TW 21

22. Negotiating the Recovery
Options for Resolution continued…
Amend the Lease/Letter Agreement
For issues that are likely to be disputed again
Set CAM caps going forward
Fixed CAM rates as an option
Refer to your Real Estate / Legal for upcoming deals, renewals, closures, etc. TW 22

23. 1-Minute Break
TW/CH 23

24. Example 3 (5 Minutes) CH

25. Example 3 CH

26. Example 4 (5 Minutes)
TW – what we’re going to do here is use pages 7-8 of the handout to determine the % of GLA making similar payments. Page 7 shows the tenant, the space, the SF and the amount they’re paying. Page 8 is the lease language with the one assumption that Tenant considers 90% of other tenant payments to be similar in nature. Note that the Shopping Center Buildings definition and Shopping Center for purposes of this example will have the same meaning. Complete the schedule to determine whether at least 90% of the GLA of the SC is making similar payments.

27. Example 4
TW – you can see that by taking out the other tenants that are not making a similar payment (at least $3.60 or more than $4) Office 1 and 2 (because Shopping Center Buildings is defined as all “retail premises in 1.1) and our premises, only 68% of the SC is making similar payments (28,000 / 41,000). The vacant space still counts because GLA is defined as being all space whether occupied or not. And the lease requires that tenants occupying at least 90% of the GLA must be making similar payments; a vacant space is not making similar payments.

28. CAP(If We Have Time) TW
The YELLOW shows the amount you would have to pay either Cap or Actual.

29. CAP TW
The YELLOW shows the amount you would have to pay either Cap or Actual.

30. Thank you for all your participation.
Please be sure to complete the course critique.
Thank you for all your participation. 30

31. Asset Strategies Group, LLC
Contact Information
Theresa Wecker
Asset Strategies Group, LLC
Cindy Headman
Burlington Stores 31 31