Mokena LLC Investors in Very Positive Position
Two significant events occurred at the end of 2015 that leaves investors in Mokena in a very positive position.
First, Unit C which represents 1,500 square feet of the vacant 6,100 square foot space, was successfully leased to a law firm for six years. Build-out on this lease will be completed by the end of January and funded from the building operating cash flow.
Secondly, Zenith who occupies 32,240 square feet which is 62% of the property, had a one-time right upon completion of Lease Year 8 (12/31/16) to cancel their lease with 12 months prior written notice to landlord with payment of a termination fee. Zenith did not exercise this right by December 31, 2015. Zenith's lease matures on December 31, 2020. This event takes the risk of termination out of the picture and may create an opportunity to sell this asset at a value that we were projecting in 2017. We will therefore begin evaluating the potential to market the property for sale and compare to holding the property.