AGENDA REPORT
Meeting Date: December 3, 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 CUSHMAN AND WAKEFIELD
OF CALIFORNIA, INC. FOR THE LEASE OF TENANT SPACE AT 439 NORTH CAÑON DRIVE, SECOND FLOOR
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 Cushman and Wakefield of California, Inc. for the lease of the tenant space at 439 North Cañon Drive, Second Floor.
INTRODUCTION
The proposed Third amendment extends the existing agreement with Cushman and Wakefield of California, Inc. (the “Broker”) through June 30, 2025.
DISCUSSION
The Parking Authority entered into a Broker Leasing Commission Agreement on May 4, 2021, which engaged the Broker to further the City’s efforts to lease tenant spaces at 439 North Cañon Drive, Suite 220 by providing marketing services. The Agreement was subsequently amended on August 23, 2022 to expand the premises covered under the brokerage agreement to include all unleased office space in the building/parking structure at City Manager’s authorization. The agreement now expires December 31, 2024.
The proposed amendment extends the term of the broker leasing commission agreement through June 30, 2025, and includes one, six-month option to extend the agreement through December 30, 2025, upon written notice from City Manager or their designee.
Meeting Date: December 3, 2024
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 4% of the base/fixed rent for the first five years of the term and 2% 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 6% and 3% 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 Suite 207 and Suite 209 to be between $112,722.37 and $175,961.11 for a five-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
B0785-0001\3038586v1.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 CUSHMAN & WAKEFIELD OF CALIFORNIA, INC., a California corporation (“Broker”).
RECITALS
A. Landlord and Broker entered into a Broker Leasing & Commission Agreement dated May 4, 2021 and amended it by a First Amendment to Broker Leasing & Commission Agreement dated August 23, 2022 and a Second Amendment to Broker Leasing & Commission Agreement dated June 21, 2023 (the “Agreement”).
B. Landlord and Broker now desire to further amend 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 of Term of Agreement. The Term of the Agreement is hereby extended to June 30, 2025, subject to one six (6) month extension by the City Manager of Landlord by written notice to Tenant given prior to the expiration of the then-current Term.
2. Counterparts. This Amendment may be executed in counterparts, all of which shall be considered one and the same agreement.
3. Effect of Amendment. Except as specifically amended by this Amendment, the remaining provisions of the Agreement shall remain in full force and effect.
LANDLORD:
THE PARKING AUTHORITY OF THE
CITY OF BEVERLY HILLS
Lester J. Friedman
Chairperson
BROKER:
CUSHMAN & WAKEFIELD OF
CALIFORNIA, INC.
Eric Olofson
Executive Vice Chairman
ATTEST:
___________________________________
Huma Ahmed
Secretary
Docusign Envelope ID: 428521FF-68C3-46E0-85CB-04EDEDA3B7DA B0785-0001\3038586v1.doc
APPROVED AS TO CONTENT:
___________________________________
Nancy Hunt-Coffey
Executive Director
Sharon L’Heureux Dressel
Risk Manager
APPROVED AS TO FORM:
Laurence S. Wiener
General Counsel
Docusign Envelope ID: 428521FF-68C3-46E0-85CB-04EDEDA3B7DA Certificate Of Completion
Envelope Id: 428521FF68C346E085CB04EDEDA3B7DA Status: Sent Subject: Complete with Docusign: Third Amendment to Broker Leasing Commission Agreement - 439 N Canon Dr 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: 72.134.81.22
Record Tracking
Status: Original
11/12/2024 4:50:07 PM
Holder: Jonathan Gernes
[email protected]
Location: DocuSign
Signer Events Signature Timestamp
Eric Olofson
[email protected]
Executive Vice Chairman
Cushman & Wakefield
Security Level: Email, Account Authentication
(None)
Signature Adoption: Drawn on Device
Using IP Address: 172.112.186.97
Signed using mobile
Sent: 11/12/2024 5:01:59 PM
Viewed: 11/12/2024 5:40:54 PM
Signed: 11/12/2024 5:41:09 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: 208.87.233.201
Sent: 11/12/2024 5:41:11 PM
Viewed: 11/14/2024 7:03:18 AM
Signed: 11/14/2024 7:03:24 AM
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: 11/12/2024 5:41:11 PM
Viewed: 11/12/2024 5:53:34 PM
Signed: 11/12/2024 5:53:45 PM
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: 11/14/2024 7:03:26 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: 11/12/2024 5:02:00 PM
Electronic Record and Signature Disclosure:
Not Offered via DocuSign
Scott Menkus
[email protected]
Security Level: Email, Account Authentication
(None)
Sent: 11/12/2024 5:02:00 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:
Not Offered via DocuSign
Keith Sterling
[email protected]
Security Level: Email, Account Authentication
(None)
Electronic Record and Signature Disclosure:
Not Offered via DocuSign
Carbon Copy Events Status Timestamp
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 11/12/2024 5:02:00 PM
Payment Events Status Timestamps