AGENDA REPORT
Meeting Date: November 19, 2024
Item Number:
To: Board of Directors, The Parking Authority of the City of Beverly Hills From: Logan Phillippo, Real Property Development Manager Jonathan Gernes, Senior Management Analyst
Subject: THIRD 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 AND 9680
SOUTH SANTA MONICA BOULEVARD
Attachments: 1. Third Amendment to Broker Leasing Commission Agreement
RECOMMENDATION
Staff recommends The Parking Authority Board of Directors approve the Third 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 and 9680 South Santa Monica Boulevard.
INTRODUCTION
The proposed Third amendment extends the existing agreement with CBRE, Inc. (the “Broker”) through November 23, 2025.
DISCUSSION
The Parking Authority entered into a Broker Leasing Commission Agreement on May 24, 2022, which engaged the Broker to further the City’s efforts to lease tenant spaces at 463 North Bedford Drive by providing marketing services. CBRE, Inc. was selected through a Request for Proposals (RFP) process conducted over March and April 2022. The Agreement was subsequently amended on October 11, 2022 to expand the premises covered under the brokerage agreement to include 9680 South Santa Monica Boulevard, the remaining tenant space in the building/parking structure. The agreement now expires November 23, 2024.
Meeting Date: November 19, 2024
The proposed amendment extends the term of the broker leasing commission agreement through November 23, 2025, and includes two, six-month options to extend the agreement through November 23, 2026, upon written notice from The Parking Authority Executive Director or their designee.
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. For any term longer than ten years, no commission is due. 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 would be required to share the commission payment with the tenant’s broker, if the tenant has a broker.
Staff estimates the total commission for both 463 North Bedford Drive and 9680 South Santa Monica Boulevard to be between $347,241.69 and $593,966.04 for a ten-year lease; however, this agreement is subject to the base rent negotiation. Staff will present necessary budget actions, if any, to City Council concurrently with approval of future leases.
Ryan Gohlich,
Assistant City Manager
Approved By
Attachment 1
-1-
B0785-0001\3036224v1.doc
THIRD AMENDMENT TO BROKER LEASING COMMISSION AGREEMENT
This THIRD AMENDMENT TO BROKER LEASING COMMISSION AGREEMENT (“Amendment”) is dated as of _________________, 2024 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, and amended it by an Amendment to Broker Leasing Commission Agreement dated October 11, 2022 and a Second Amendment to Broker Leasing Commission Agreement dated March 16, 2023 (the “Agreement”).
B. The Agreement expires on November 23, 2024, and Broker and Landlord desire to extend the term of the Agreement.
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. Extension; Extension Options. The term of the Agreement is hereby extended to November 23, 2025, and the Executive Director or designee shall have the right to further extend the term of the Agreement for up to two (2) periods of six (6) months each by written notice to Broker.
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:
Lester J. Friedman, Chairperson
BROKER:
CBRE, INC.
By:
Andrew Ratner, Managing Director
ATTEST:
Huma Ahmed, Secretary
Docusign Envelope ID: 1B032D66-20D8-45EC-B779-5722373B0AA9 -2-
B0785-0001\3036224v1.doc
APPROVED AS TO FORM:
Laurence S. Wiener, General Counsel
APPROVED AS TO CONTENT:
Nancy Hunt-Coffey, Executive Director
Sharon L’Heureux Dressel, Risk Manager
Docusign Envelope ID: 1B032D66-20D8-45EC-B779-5722373B0AA9 Certificate Of Completion
Envelope Id: 1B032D6620D845ECB7795722373B0AA9 Status: Sent Subject: Complete with DocuSign: Third Amendment to Broker Leasing Commission Agreement 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: 198.245.189.166
Record Tracking
Status: Original
11/4/2024 3:14:56 PM
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: 192.34.68.250
Sent: 11/7/2024 11:17:24 AM
Viewed: 11/7/2024 11:24:51 AM
Signed: 11/7/2024 11:24:58 AM
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: 208.87.233.201
Sent: 11/7/2024 11:25:00 AM
Viewed: 11/7/2024 12:24:20 PM
Signed: 11/7/2024 12:24:27 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: 11/7/2024 11:25:01 AM
Resent: 11/8/2024 10:47:04 AM
Viewed: 11/12/2024 6:09:50 AM
Signed: 11/12/2024 6:09:57 AM
Electronic Record and Signature Disclosure:
Not Offered via DocuSign
Logan Phillippo
[email protected]
Real Property Development Manager
City of Beverly Hills
Security Level: Email, Account Authentication
(None)
Sent: 11/12/2024 6:10:00 AM
Electronic Record and Signature Disclosure:
Not Offered via DocuSign
Nancy Hunt-Coffey
[email protected]
Security Level: Email, Account Authentication
(None)
Signer Events Signature Timestamp
Electronic Record and Signature Disclosure:
Not Offered via DocuSign
Lester J. Friedman
[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]
Real Property Development Manager
City of Beverly Hills
Security Level: Email, Account Authentication
(None)
Sent: 11/7/2024 11:17:24 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: 11/7/2024 11:17:25 AM
Viewed: 11/7/2024 5:30:17 PM
Electronic Record and Signature Disclosure:
Not Offered via DocuSign
Ryan Gurman
[email protected]
Vice President
CBRE - Corporate
Security Level: Email, Account Authentication
(None)
Sent: 11/7/2024 11:17:25 AM
Viewed: 11/7/2024 12:32:12 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
Keith Sterling
[email protected]
Security Level: Email, Account Authentication
(None)
Electronic Record and Signature Disclosure:
Not Offered via DocuSign
Megan Grilley
[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 11/7/2024 11:17:25 AM
Payment Events Status Timestamps