AGENDA REPORT
Meeting Date: October 11, 2022
Item Number:
To: Parking Authority Board of Directors
From: Logan Phillippo, Policy & Management Analyst
Jonathan Gernes, Management Analyst
Subject: AMENDMENT TO BROKER LEASING COMMISSION AGREEMENT
BY AND BETWEEN THE PARKING AUTHORITY OF THE CITY OF
BEVERLY HILLS AND CBRE, INC. FOR THE LEASE OF TENANT
SPACE AT 463 NORTH BEDFORD DRIVE
Attachments: 1. Amendment to Broker Leasing Commission Agreement
RECOMMENDATION
Staff recommends The Parking Authority Board of Directors approve the Amendment to Broker Leasing Commission Agreement by and between The Parking Authority of the City of Beverly Hills and CBRE, Inc. for the lease of the tenant space at 463 North Bedford Drive.
INTRODUCTION
The proposed amendment expands the leasable area in the existing agreement with CBRE, Inc. (the “Broker”) to include 9680 South Santa Monica Boulevard.
DISCUSSION
The Parking Authority entered into a Broker Leasing Commission Agreement on May 24, 2022, which allows the Broker to assist the City with marketing and leasing the retail space at 463 North Bedford Drive. CBRE, Inc. was selected through a Request for Proposals (RFP) process conducted over March and April 2022.
Rite Aid currently leases this space through March 31, 2023, though has already closed operations at this location as of March 2022. FedEx currently leases the retail space at 9680 South Santa Monica Boulevard, which is adjacent to the former Rite Aid store on the ground level of the same parking structure. The lease with FedEx expires February 28, 2023. The tenant’s lease provides an option to extend for five additional years.
However, on September 21, 2022, a FedEx representative informed Staff that this D-1
Meeting Date: October 11, 2022
location will close at the end of the current term. There are no other tenant spaces in the building/parking structure.
The proposed amendment expands the premises covered under the brokerage agreement to include 9680 South Santa Monica Boulevard.
FISCAL IMPACT
There is no fiscal impact or request for funding at this time.
Per the terms of the existing agreement, the Broker has agreed to a commission consisting of 3% of the base/fixed rent for the first five years of the term and 1.5% of the base/fixed rent for the second five years of the term. If there is a tenant’s broker, these fees would increase to 5% and 2.5% respectively. The commission would be paid in five equal installments, with the first installment due upon the mutual execution of a lease agreement and the tenant’s prepayment of the first month of rent and delivery of the security deposit to the City. The remaining four installments would be paid on each anniversary of the lease term commencement date. The broker will be required to share the commission payment with the tenant’s broker, if the tenant has a broker.
Staff estimates the total commission (including 9680 South Santa Monica Boulevard) to be between $347,241.69 and $593,966.04 for a ten-year lease; however, this agreement will be subject to the base rent negotiation. Staff will present necessary budget actions, if any, to City Council concurrently with approval of future leases.
Gabriella Yap,
Deputy City Manager
Approved By
Attachment 1
B0785-0001\2723415v1.doc
AMENDMENT TO BROKER LEASING COMMISSION AGREEMENT
This AMENDMENT TO BROKER LEASING COMMISSION AGREEMENT
(“Amendment”) is dated as of October 11, 2022 and is entered into by and between THE PARKING AUTHORITY OF THE CITY OF BEVERLY HILLS (“Landlord”) and CBRE, INC. (“Broker”).
RECITALS
A. Landlord and Broker entered into a Broker Leasing Commission Agreement dated May 24, 2022 with respect to the leasing by Landlord of space at 463 N. Bedford Drive, which is referred to as the “Premises” in the Agreement.
B. Broker and Landlord desire to clarify that the Premises includes 9680 South Santa Monica Boulevard.
NOW, THEREFORE, in consideration of the foregoing recitals and other consideration, the sufficiency of which is hereby acknowledged, Landlord and Broker hereby agree as follows:
1. Premises. The term “Premises” as used in the Agreement shall include 9680 South Santa Monica Boulevard.
2. Counterparts. This Amendment may be executed in counterparts, all of which shall be considered one and the same agreement.
3. Entire Agreement. This Amendment constitutes the entire agreement between Landlord and Broker with respect to the subject matter hereof and may not be altered except by a written amendment executed by both Landlord and Broker.
4. Applicable Law. This Amendment shall be governed by the laws of the State of California.
5. DocuSign. This Amendment may be executed by using DocuSign.
LANDLORD:
THE PARKING AUTHORITY OF THE
CITY OF BEVERLY HILLS
By:
Lili Bosse, Chairperson
BROKER:
CBRE, INC.
By:
Andrew Ratner, Managing Director
ATTEST:
Huma Ahmed, Secretary
DocuSign Envelope ID: F6742884-2AD2-4DB5-B4AC-5B80477DA6F4 APPROVED AS TO FORM:
Laurence S. Wiener, General Counsel
APPROVED AS TO CONTENT:
George Chavez, Executive Director
Sharon L’Heureux Dressel, Risk Manager
DocuSign Envelope ID: F6742884-2AD2-4DB5-B4AC-5B80477DA6F4 Certificate Of Completion
Envelope Id: F67428842AD24DB5B4AC5B80477DA6F4 Status: Sent Subject: Complete with DocuSign: Amendment to Broker Leasing Commission Agreement - 463 N Bedford.pdf Source Envelope:
Document Pages: 2 Signatures: 3 Envelope Originator:
Certificate Pages: 3 Initials: 0 Jonathan Gernes
AutoNav: Enabled
EnvelopeId Stamping: Enabled
Time Zone: (UTC-08:00) Pacific Time (US & Canada)
455 N. Rexford Drive
Beverly Hills, CA 90210
[email protected]
IP Address: 104.175.192.151
Record Tracking
Status: Original
10/3/2022 11:41:25 AM
Holder: Jonathan Gernes
[email protected]
Location: DocuSign
Signer Events Signature Timestamp
Andrew Ratner
[email protected]
EMD
CBRE - Corporate
Security Level: Email, Account Authentication
(None)
Signature Adoption: Drawn on Device
Using IP Address: 107.77.230.26
Signed using mobile
Sent: 10/3/2022 11:51:56 AM
Resent: 10/3/2022 3:35:54 PM
Viewed: 10/3/2022 3:38:50 PM
Signed: 10/3/2022 3:39:07 PM
Electronic Record and Signature Disclosure:
Not Offered via DocuSign
Bruce Galloway for
[email protected]
Security Level: Email, Account Authentication
(None)
Signature Adoption: Pre-selected Style
Using IP Address: 208.87.235.180
Sent: 10/3/2022 3:39:10 PM
Viewed: 10/3/2022 3:40:40 PM
Signed: 10/3/2022 3:40:49 PM
Electronic Record and Signature Disclosure:
Not Offered via DocuSign
Sharon L'Heureux Dressel
[email protected]
Risk Manager
Sharon Dressel
Security Level: Email, Account Authentication
(None)
Signature Adoption: Pre-selected Style
Using IP Address: 198.245.189.166
Sent: 10/3/2022 3:39:10 PM
Viewed: 10/4/2022 7:13:05 AM
Signed: 10/4/2022 7:13:19 AM
Electronic Record and Signature Disclosure:
Not Offered via DocuSign
Logan Phillippo
[email protected]
Senior Management Analyst
City of Beverly Hills
Security Level: Email, Account Authentication
(None)
Sent: 10/4/2022 7:13:22 AM
Electronic Record and Signature Disclosure:
Not Offered via DocuSign
George Chavez
[email protected]
Security Level: Email, Account Authentication
(None)
Signer Events Signature Timestamp
Electronic Record and Signature Disclosure:
Not Offered via DocuSign
Lili Bosse
[email protected]
Security Level: Email, Account Authentication
(None)
Electronic Record and Signature Disclosure:
Not Offered via DocuSign
Huma Ahmed
[email protected]
Security Level: Email, Account Authentication
(None)
Electronic Record and Signature Disclosure:
Not Offered via DocuSign
In Person Signer Events Signature Timestamp
Editor Delivery Events Status Timestamp
Agent Delivery Events Status Timestamp
Intermediary Delivery Events Status Timestamp
Certified Delivery Events Status Timestamp
Carbon Copy Events Status Timestamp
Logan Phillippo
[email protected]
Senior Management Analyst
City of Beverly Hills
Security Level: Email, Account Authentication
(None)
Sent: 10/3/2022 11:51:54 AM
Electronic Record and Signature Disclosure:
Not Offered via DocuSign
Neal Golub
[email protected]
CBRE, VP
CBRE - Corporate
Security Level: Email, Account Authentication
(None)
Sent: 10/3/2022 11:51:55 AM
Viewed: 10/3/2022 12:31:38 PM
Electronic Record and Signature Disclosure:
Not Offered via DocuSign
Ryan Gurman
[email protected]
Associate
CBRE - Corporate
Security Level: Email, Account Authentication
(None)
Sent: 10/3/2022 11:51:55 AM
Viewed: 10/3/2022 12:00:18 PM
Electronic Record and Signature Disclosure:
Not Offered via DocuSign
Adrianne Tarazon
[email protected]
Security Level: Email, Account Authentication
(None)
Electronic Record and Signature Disclosure:
Carbon Copy Events Status Timestamp
Not Offered via DocuSign
Dorina Mohan
[email protected]
Security Level: Email, Account Authentication
(None)
Electronic Record and Signature Disclosure:
Not Offered via DocuSign
Flora Flowers
[email protected]
Security Level: Email, Account Authentication
(None)
Electronic Record and Signature Disclosure:
Not Offered via DocuSign
Michael Dunn
[email protected]
Security Level: Email, Account Authentication
(None)
Electronic Record and Signature Disclosure:
Not Offered via DocuSign
Witness Events Signature Timestamp
Notary Events Signature Timestamp
Envelope Summary Events Status Timestamps
Envelope Sent Hashed/Encrypted 10/3/2022 11:51:55 AM
Payment Events Status Timestamps