Lease abstract - Huron Consulting Services LLC / Union Tower, 550 W Van Buren St, Chicago
Graded against FASB ASC Topic 842. Every field carries a document and section cite. Facts only - the classification conclusion and every other accounting judgement belong to the controller.
Document set abstracted (8 documents, 97,593 words):
| # | Document | Dated | Source |
|---|---|---|---|
| D1 | Office Lease | 10 Dec 2003 | SEC EX-10.1, HURN CIK 1289848 |
| D2 | First Amendment | 23 Aug 2004 | SEC EX-10.17 |
| D3 | Second Amendment | 14 May 2007 | SEC EX-10.18 |
| D4 | Third Amendment | 2 Apr 2010 | SEC EX-10.19 |
| D5 | Fourth Amendment | 31 Dec 2012 | SEC EX-10.1 (8-K 4 Jan 2013) |
| D6 | Fifth Amendment | 1 Dec 2013 | SEC EX-10.13 |
| D7 | Sixth Amendment | 3 Oct 2019 (eff. 1 Oct 2019) | SEC EX-10.1 |
| D8 | Seventh Amendment | 12 Feb 2026 | SEC EX-10.2 (10-Q 5 May 2026) |
A ninth candidate exhibit (EX-10.20, 2014) was retrieved and excluded: it is Amendment No. 3 to a Credit Agreement with Bank of America, not a lease. Recorded because exclusion is part of the work.
Parties
| Field | Value | Cite |
|---|---|---|
| Landlord (original) | Union Tower, LLC, a Delaware LLC | D1 cover; D8 recital A |
| Landlord (current) | Onni Van Buren Chicago LLC, a Delaware LLC | D8 preamble |
| Tenant (original) | Huron Consulting Group LLC, a Delaware LLC | D1 cover |
| Tenant (current) | Huron Consulting Services LLC, a Delaware LLC | D8 preamble |
| Building | Union Tower, 550 West Van Buren Street, Chicago, Illinois | D8 recital A |
Flagged: the named tenant changes from Huron Consulting Group LLC to Huron Consulting Services LLC across the chain, and the landlord changes from Union Tower, LLC to Onni Van Buren Chicago LLC between D6 and D7. Neither the assignment nor the conveyance instrument is in the document set, so the mechanism of each change is not evidenced here.
Premises, and a surrender inside 60 days
| Component | Floors | Rentable sf | Status | Cite |
|---|---|---|---|---|
| Existing Premises | 4, 5, 8, 9, 10, 17 + part of 11 | 133,852 | until 30 Sep 2026 | D8 recital A, §2(a) |
| Surrendered Premises | 4, 5, 11 | 51,184 | terminates 30 Sep 2026 | D8 recital B, §2(b), §3(a) |
| Adjusted Premises | 8, 9, 10, 17 | 82,668 | to 30 Sep 2037 | D8 §2(b), §3(a) |
Recomputed and tied. Six full floors at 20,667 sf each is 124,002, plus 9,850 sf on the 11th floor, gives 133,852 - the figure D8 recital A states. Surrendered: floors 4 and 5 at 20,667 each plus 9,850 on the 11th is 51,184, as stated. 133,852 less 51,184 is 82,668, the Adjusted Premises total in the D8 §2(b) table. Every figure ties.
Term
| Field | Value | Cite |
|---|---|---|
| Effective Commencement Date | 31 December 2003 | D1 Art.1(C) |
| Expiration before D8 | 30 September 2029 | D8 §3(a) |
| Extension granted by D8 | 8 years | D8 §3(a) |
| Expiration, Surrendered Premises | 30 September 2026 | D8 §3(a) |
| Expiration, Adjusted Premises | 30 September 2037 | D8 §3(a) |
D8 §3(b) declares paragraph 10 of the Sixth Amendment null and void.
Base rent, Adjusted Premises, and the column that does not tie
From the Premises Adjustment Date, 1 October 2026. D8 §4(b).
| Lease Year | Annual Base Rent | Monthly | Printed $/sf |
|---|---|---|---|
| 1 Oct 2026 - 30 Sep 2027 | 2,025,366.00 | 168,780.50 | 24.50 |
| 1 Oct 2027 - 30 Sep 2028 | 2,076,000.15 | 173,000.01 | 25.11 |
| 1 Oct 2028 - 30 Sep 2029 | 2,127,900.15 | 177,325.01 | 25.74 |
| 1 Oct 2029 - 30 Sep 2030 | 2,181,097.66 | 181,758.14 | 26.38 |
| 1 Oct 2030 - 30 Sep 2031 | 2,235,625.10 | 186,302.09 | 27.04 |
| 1 Oct 2031 - 30 Sep 2032 | 2,291,515.73 | 190,959.64 | 27.72 |
| 1 Oct 2032 - 30 Sep 2033 | 2,348,803.62 | 195,733.63 | 28.41 |
| 1 Oct 2033 - 30 Sep 2034 | 2,407,523.71 | 200,626.98 | 29.12 |
| 1 Oct 2034 - 30 Sep 2035 | 2,467,711.80 | 205,642.65 | 29.85 |
| 1 Oct 2035 - 30 Sep 2036 | 2,529,404.60 | 210,783.72 | 30.60 |
| 1 Oct 2036 - 30 Sep 2037 | 2,592,639.71 | 216,053.31 | 31.36 |
Cite for every row above: D8 §4(b). Each row is a row of the table set out in that section.
The document states no escalation rate. Its only three uses of “escalations” are inside the renewal-option fair-market-rent definition at D8 §7(b), which is a different thing entirely.
The annual column is not generated from the printed rate column. Recomputing 82,668 sf times the printed $/sf reproduces year 1 and fails in the other ten years, by amounts from $25.83 to $315.82 and in both directions, for a cumulative difference of $1,233.79 over the term.
What does reproduce every row to the cent is 82,668 sf times a rate compounding at exactly 2.5% from $24.50, carried unrounded. So the printed $/sf column is that same rate rounded for display, and the annual column is computed before rounding. The annual figures are authoritative and the printed rate is decorative. A lease-accounting system fed the printed rate produces a schedule that does not tie to the executed document.
One further artifact: at year 7 the stated monthly instalment is $195,733.63 while annual divided by twelve is $195,733.64. A one-cent rounding difference inside the document itself. Reported, not corrected.
Rent abatement. Base Rent, Tenant’s Pro Rata Share of Taxes and of Operating Expenses are abated in full for the eight calendar months October 2026 through May 2027, conditional on no subsisting default. The Base Rent component is stated as $1,350,244.00; the tax and operating expense component is not stated and is to be supplied by Landlord on request from 1 January 2026. Abatement of those two is of actual, not estimated, amounts after reconciliation. D8 §6(a)-(b).
Flagged: Tenant may elect to reallocate 50% of the Adjusted Premises Rent Abatement to increase the Tenant Work Allowance, by written notice (D8 §6(c)). Whether that election has been made is not evidenced in the document set, and it changes both the abatement and the allowance.
Operating expenses
| Field | Value | Cite |
|---|---|---|
| Structure | Tenant pays Pro Rata Share of Taxes and of Operating Expenses | D1 Art.3; D8 §4(a) |
| Pro Rata Share from 1 Oct 2026 | 25.164% (82,668 / 328,516 rsf in the Building) | D8 §5 |
Recomputed: 82,668 / 328,516 = 25.1642%. Ties to the stated figure.
Critical dates
| Date | Obligation | Status at 2 Aug 2026 | Cite |
|---|---|---|---|
| 30 Sep 2026 | Surrender floors 4, 5 and 11 (51,184 sf) | 59 days away | D8 §2(b), §3(a) |
| 1 Oct 2026 | Rent steps down to Adjusted Premises only | 60 days | D8 §4(a)-(b) |
| Oct 2026 - May 2027 | Eight-month abatement period runs | upcoming | D8 §6(a) |
| 30 Sep 2030 | Earliest Contraction Notice deadline (12 months before earliest Contraction Date) | open | D8 §9 |
| 30 Sep 2033 | Termination Notice Deadline, to terminate effective 30 Sep 2034 with fee | open | D8 §8(a) |
| 30 Sep 2035 | Right of First Refusal over the 7th floor expires | open | D8 §10(a) |
| 30 Jun 2028 - 30 Sep 2028 | Extension notice window under reading B - see the ambiguity below | open, and the earlier of two possible windows | D8 §7(c)(i) |
| 30 Jun 2036 - 30 Sep 2036 | Extension notice window under reading A | open | D8 §7(c)(i) |
| 30 Sep 2037 | Adjusted Premises expiration | open | D8 §3(a) |
The extension option has a front boundary as well as a back one
D8 §7(c)(i) requires notice “not less than twelve (12) months, but not more than fifteen (15) months, prior to the expiration of the initial Term”. That is a three-month window with two boundaries: notice delivered too early is as ineffective as notice delivered too late, and D8 §7(a) provides that if the option is not timely exercised it terminates and Tenant “shall have no further options to extend the Term”. A critical-date system storing only “12 months before expiry” records one boundary of a two-boundary obligation.
AMBIGUOUS, AND THE TWO READINGS ARE EIGHT YEARS APART - not resolved here
“Initial Term” appears exactly once in the Seventh Amendment and is defined nowhere in it. The Lease defines “Term”; D8 §3(a) extends it. “Initial Term” is a new phrase, used only in this notice provision, and the whole date turns on it.
| Reading | “Initial Term” expires | Notice window | Distance from 2 Aug 2026 |
|---|---|---|---|
| A | 30 Sep 2037 (Term as extended by D8) | 30 Jun 2036 - 30 Sep 2036 | about 10 years |
| B | 30 Sep 2029 (Term before D8 extended it) | 30 Jun 2028 - 30 Sep 2028 | about 2 years |
The readings are 2,922 days apart. Reading A is the better-supported one, because D8 §7(a) sets the Option Term as “five (5) years from October 1, 2037 to September 30, 2042”, and an option term beginning 1 October 2037 sits immediately after a term expiring 30 September 2037. Reading B would require notice roughly nine years before the option term begins, which is unusual.
But better-supported is not resolved, and the consequence of choosing wrong is losing the option outright. This is a question for counsel and for the landlord, and the safe operational answer is to diarise the earlier window as well. It is flagged rather than answered because answering it is not what this abstract is for.
ASC 842-10-25-2 classification criteria - facts only
| # | Criterion | Fact from the documents | Cite |
|---|---|---|---|
| (a) | Transfer of ownership by end of term | No provision transferring ownership appears in any of the eight documents. | Searched D1-D8 |
| (b) | Purchase option reasonably certain of exercise | No purchase option appears in any of the eight documents. Tenant’s options are one five-year extension at fair market rent, one contraction right, one termination right and a right of first refusal. | D8 §§7-10; searched D1-D8 |
| (c) | Term for major part of remaining economic life | Adjusted Premises term to 30 Sep 2037; one five-year option to 30 Sep 2042; termination right effective 30 Sep 2034 on notice with a fee. Union Tower, an existing multi-tenant office building. The documents state no economic life or construction date. | D8 §§3(a), 7(a), 8(a) |
| (d) | PV of lease payments >= substantially all of fair value | Base Rent is determinable from the D8 §4(b) table, plus a 25.164% share of Taxes and Operating Expenses that is not quantified in the documents. No fair value of the underlying asset and no discount rate are stated. | D8 §§4(b), 5 |
| (e) | Specialised asset with no alternative use | General office use in a 328,516 sf multi-tenant building; Tenant occupies 25.164% after the surrender. Landlord retains a right of first refusal mechanism over the 7th floor for other prospects, and the Seventh Amendment itself takes back three floors for re-letting. All indicate alternative use. | D8 §§5, 10(a), 2(b) |
Criteria (c) and (d) cannot be completed from the lease documents alone. Economic life, fair value and the discount rate are inputs the controller supplies. The termination and extension options also require a reasonably-certain judgement, which is the controller’s and not stated here.
Two scrivener’s errors in the executed document
Reported because they are in the operative text, not because they change the deal.
- D8 §9 requires the Contraction Notice to state “the exact date between September 30, 2031 and September 30, 3032”. The same section, two sentences earlier, gives the window correctly as 30 September 2031 to 30 September 2032. The year 3032 appears once; 2032 appears three times.
- D8 §9 caps the contraction at “not more than 20,677 rentable square feet” on the 10th or 17th floor, while the D8 §2(b) premises table gives each of those floors as 20,667 sf. The contraction cap is therefore 10 sf larger than the floor it applies to.
Neither is resolved here. Both are the kind of thing that propagates silently once keyed.
Limits of this abstract
- Exhibits A (surrender depiction), B (Tenant Work Letter) and C (Termination Fee calculation) were not reproduced in the filed text. The Termination Fee formula is therefore cited to D8 §8(a) for its components and the Exhibit C computation is not abstracted.
- Cites give document and section. The filed text of these exhibits does not carry usable page markers, so page numbers do not exist to cite and were not invented.
- Source documents are SEC EDGAR exhibits. A company files only material contracts, so the absence of a further amendment is not proof that none exists.
- Neither the tenant-name change nor the landlord conveyance is evidenced by an instrument in the set.
- Operating expense and tax amounts are not quantified anywhere in the documents.