PROPERTIES INFO FROM 10K
“Our principal office, and that of our subsidiaries, is located at 910 Sixteenth Street, Suite 412, Denver, Colorado 80202 where we lease 1,126 square feet of office space. We entered into the three-year lease on July 21, 2014 which expires on July 31, 2017. The monthly lease payment through July 31, 2015 is $1,505; thereafter it increases to $1,600 and to $1,700 on August 1, 2015 and 2016, respectively. We believe that the leased premises are suitable and adequate to meet our current needs.
On April 9, 2014, we entered into a one-year lease with the owner of the Adagio located at 1430 Race Street, Denver, Colorado (the “Adagio Lease”) for a monthly lease payment of $9000 per month, plus 2½% of the monthly gross lodging revenue and the issuance of 10,000 shares of our Common Stock. The Adagio Lease commenced on April 10, 2014 and expired April 9, 2015. On February 27, 2015, we exercised our option to purchase the Adagio and executed a Contract to Buy and Sell Real Estate (the “Sales Contract”) with A Capital Inn, Inc. (the “Seller”). The purchase price for the Adagio was $1,500,000 with the Seller agreeing to finance $1,000,000. Upon execution of the Sales Contract, the Company made a non-refundable deposit of $50,000; however, we were unable to secure proper financing to close the purchase. Subsequently, we entered into a six-month lease agreement for the monthly rate of $10,000 plus a 2½% royalty of gross lodging revenue which expires on December 31, 2015. We are currently seeking a larger property to replace the Adagio. Our ideal property would be a 20 to 25 room hotel within walking distance of the Denver metro.
On September 4, 2014, we entered into a one year lease with the owners of the Mountain Vista Bed and Breakfast (“Mountain Vista”), located at 358 Lagoon Lane in Silverthorne, Colorado (the “Mountain Vista Lease”). The Mountain Vista Lease commenced October 1, 2014 and expires September 30, 2015. The monthly rent is $3,500 per month, plus 2% of the monthly gross lodging revenue. As additional consideration, we agreed to issue the owners of the Mountain Vista 10,000 shares of our Common Stock. Pursuant to the terms of the Mountain Vista Lease, we were granted the exclusive option to purchase the Mountain Vista at the market value of the premises determined by a commercial appraisal on the option date.
On June 24, 2015, we executed a two-year lease option agreement with Hotel San Ayre, LLC for the purchase of Hotel San Ayre and its four locations in Colorado Springs, Colorado (the “Lease”). The Lease term begins on July 15, 2015 and terminates the earlier of July 14, 2017 or the closing date of the purchase thereof. The base rental amount for the first 12 months of the Lease is $12,500 and is $13,500 for the last 12 months of the Lease. We are responsible for all operation, repair, use and maintenance of the premises during the term of the Lease. Joel Schneider, our Chief Executive Officer, personally guaranteed the Lease. Upon execution of the Lease, we paid a non-refundable deposit of $30,000 which may be applied to the future purchase; however, is not considered a security deposit if the purchase option is not exercised. The purchase price for the Hotel San Ayre is $2,100,000 on an as-is basis.”
AI
