In the purchase of the shares of the companies which own Hermann’s Jazz Club by the Jazz on View Society, it may be necessary or appropriate to accept a mortgage investment.
Mortgage investment would likely follow these rules:
Mortgage security would be in the building owned by Bastion Inn Limited houses Hermann’s Jazz Club. For the purposes of these calculations, Jazz on View Society attributes the values of the shares in the purchase as follows: Bastion Inn Limited – $2,800,000.00, the other two companies $200,000.00.
The mortgage investment would be represented by a first mortgage and would be subject to certain restrictions. The mortgage would be through the vehicle of a Limited Company.
This mortgage would have a face value of approximately $1,000,000.00. It would have a term of 10 years, and an ammortation period of 20 years. Interest rate would be approximately 3.5% per annum calculated annually not in advance.
Mortgage investors recognize that the property of Bastion Inn Limited (751/753 View Street) may be protected by a section 219 covenant to be held by the National Trust for Land and Culture (BC) Society which will protect the requirements for the perpetual protection and sustainability of Hermann’s Jazz Club as operated by the Jazz on View Society.
If you are able to help us save Hermann’s Jazz Club by this type of investment, please submit the form below and we will contact you to discuss the details.