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Purchase & Sale Agreement - 7542 & 7656 S Colfax Ave, Chicago, IL 60649 - 2 - 7542 and 7656 S Colfax Ave, Chicago, IL 60649.pdf

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Docusign Envelope ID: 285F8FC2-FE0F-449C-AC8C-0A7DFA92F541 AGREEMENT FOR THE TRANSFER OF THE OWNERSHIP OF THE PROPERTY LOCATED AT 7656 S. COLFAX AVENUE, CHICAGO, ILLINOIS 60649, FROM LOFTY HOLDING 7542 S COLFAX AVENUE LLC, TO NEW HEIGHTS DEVELOPMENT LLC. THIS AGREEMENT FOR THE TRANSFER OWNERSHIP OF THE PROPERTY LOCATED AT 7656 S COLFAX AVENUE, CHICAGO, ILLINOIS 60649, FROM LOFTY HOLDING 7542 S COLFAX AVENUE LLC, TO NEW HEIGHTS DEVELOPMENT LLC, (“Agreement”) is made and entered into the date of e

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Docusign Envelope ID: 285F8FC2-FE0F-449C-AC8C-0A7DFA92F541

AGREEMENT FOR THE TRANSFER OF THE OWNERSHIP OF
THE PROPERTY LOCATED AT 7656 S. COLFAX AVENUE, CHICAGO,
ILLINOIS 60649, FROM LOFTY HOLDING 7542 S COLFAX AVENUE
LLC, TO NEW HEIGHTS DEVELOPMENT LLC.
THIS AGREEMENT FOR THE TRANSFER OWNERSHIP OF THE PROPERTY
LOCATED AT 7656 S COLFAX AVENUE, CHICAGO, ILLINOIS 60649, FROM
LOFTY HOLDING 7542 S COLFAX AVENUE LLC, TO NEW HEIGHTS
DEVELOPMENT LLC, (“Agreement”) is made and entered into the date of execution of
this Agreement (the “Effective Date”), by and among JERRY CHU AND MAX BALL for,
LOFTY HOLDING 7542 S COLFAX AVENUE LLC, a Delaware Limited Liability
Corporation (“LOFTY”), the predecessor company for LOFTY HOLDING 7542 & 7656
S COLFAX AVENUE DAO LLC, A DECENTRALIZED AUTONOMOUS
ORGANIZATION LIMITED LIABILITY COMPANY subject to the Wyoming Limited
Liability Company Act, and the Wyoming Decentralized Autonomous Organization
Supplement (“DAO”) and JULIAN EDWARDS for NEW HEIGHTS DEVELOPMENT LLC,
an Illinois Limited Liability Corporation (“NEW HEIGHTS”).
PREAMBLE
WHEREAS, LOFTY is the sole owner of the subject property located at 7656 S.
Colfax, Chicago, Illinois 60649, as the predecessor company for DAO, and was conveyed
ownership through a Warranty Deed, dated, December 21, 2021; and
WHEREAS, LOFTY, desires to ultimately transfer the subject property to NEW
HEIGHTS by first transferring the property to its successor Company DAO, and NEW
HEIGHTS as TENANTS IN COMMON. NEW HEIGHTS would then obtain financing to rehab
the Subject Property and subsequently refinance or sell the subject property, and shall pay DAO
using the one of the scenarios as follows:
(a) If the Appraised Value After Rehab is $400,000 or greater, then NEW HEIGHTS shall pay
DAO, $165,000 plus 50% of the net remaining equity (NEW HEIGHTS shall retain the other
50% of the net remaining equity), after subtracting the rehab loan amount of ($160,000),
the set Broker Fee of $8,200, and the Closing Costs, from the Appraised Value After Rehab;
or
(b) If the Appraised Value After Rehab is less than $325,000, which is the total of the rehab loan
amount of $160,000 plus $165,000, which is DAO’s expected payment amount, then NEW
HEIGHTS shall pay off the rehab loan of $160,000, and then pay DAO the remaining equity
after deducting the rehab loan amount from the Appraised Value After Rehab, and then
DAO and NEW HEIGHTS, shall pay the Broker Fee of $8,200, and the Closing Costs, at a
rate of 50%/50%; or
(c) If the Appraised Value After Rehab is between $399,000 and $326,000, which is less than
$400,000 but greater than $325,000, amounts which still covers the rehab loan amount of
$160,000, and the $165,000, which is DAO’s expected payment amount, but may or may
not cover all the Closing Costs and the Broker Fee of $8,200, then NEW HEIGHTS shall

Docusign Envelope ID: 285F8FC2-FE0F-449C-AC8C-0A7DFA92F541

pay off the rehab loan of $160,000, and then pay DAO its $165,000, and then the remaining
equity after deducting the rehab loan amount and DAO's $165,000 will be used to pay as
much of the Closing Cost and the Broker Fee of $8,200 as possible. If there is equity
remaining after the rehab loan amount, the $165,000, the Closing Costs, and the Broker Fee
of $8,200 are all paid, then that will be split 50%/50% between DAO and NEW HEIGHTS,
if there is no equity remaining equity, then DAO and NEW HEIGHTS, shall pay the Closing
Costs and Broker Fee of $8,200, at a rate of 50%/50%.
NOW THEREFORE, in consideration of the mutual covenants herein contained,
and for other good and valuable consideration, the receipt and sufficiency of which is
hereby acknowledged, it is agreed by the parties to this Agreement as follows:
ARTICLE I
Transfer of Property
1.1
Preambles. The preambles to this Agreement are hereby incorporated
into this Agreement and made an integral part of this Agreement by this reference.
1.2
Subject Property. The Subject Property is located at 7656 S. Colfax Avenue,
Chicago, Illinois 60649, including all personal property.
1.3
Agreement to Transfer. Subject to the terms and conditions of this
Agreement, LOFTY agrees to sign a Quit Claim Deed transferring the Subject Property to
LOFTY HOLDING 7542 & 7656 S. COLFAX AVENUE DAO LLC, A DECENTRALIZED
AUTONOMOUS ORGANIZATION LIMITED LIABILITY CORPORATION (“DAO”)
subject to the Wyoming Limited Liability Company Act, and the Wyoming Decentralized
Autonomous Organization Supplement, and NEW HEIGHTS DEVELOPMENT LLC, an
Illinois Limited Liability Corporation, as TENANTS IN COMMON, on behalf of the
Corporation, successors, representatives and assigns, for and in consideration of the sum of ONE
DOLLAR AND NO/100th DOLLARS, and other valuable consideration, in hand paid, under the

terms of Article I.
1.4
Closing Date. The execution of the Agreement to transfer the Subject
Property shall be consummated and closed on August , 2025 (the “Closing Date”).
1.5

Terms to Transfer the Subject Property:

(a)

Upon the execution of this Agreement, LOFTY shall execute a Quit Claim
Deed transferring the Subject Property to DAO and NEW HEIGHTS.

(b)

The Quit Claim Deed in 1.5 (a) shall be immediately recorded by the
Attorney for the transaction, after payment of the current water bill in
full and for the Full Payment Water Certification by LOFTY/DAO.