AGENDA REPORT
Meeting Date:
Item Number:
To:
From:
Subject:
Attachment:
September 9, 2025
Honorable Mayor & City Council
Logan Phillippo, Real Property Development Manager
Jonathan Gernes, Senior Management Analyst
APPROVAL OF FIRST AMENDMENT TO LEASE BY AND
BETWEEN THE CITY OF BEVERLY HILLS AND SUN COAST
MERCHANDISE CORP. AT 239 SOUTH BEVERLY DRIVE
1. First Amendment to Lease
RECOMMENDATION
Staff recommends the City Council approve the First Amendment to Lease by and between the City of Beverly Hills and Sun Coast Merchandise Corp. (the “Tenant”) at 239 South Beverly Drive.
INTRODUCTION
The City’s lease agreement with Sun Coast Merchandise Corp. expires September 12, 2025, and the proposed first amendment of lease extends the term through September 12, 2028.
DISCUSSION
The City of Beverly Hills entered into an initial lease agreement with Sun Coast Merchandise Corp. at 239 South Beverly Drive on April 26, 2022, with no option for the Tenant to renew.
The Tenant operates Sunscope, a merchandise company offering design and sourcing services.
The proposed First Amendment to Lease has the following key terms:
• The lease expiration date shall be September 12, 2028; • Base rent shall be $13,223.62 beginning September 13, 2025, and increase by 3% annually thereafter; and
Meeting Date: September 9, 2025
• Monthly operating expense payments shall be $363.12 beginning January 1, 2026, and increase annually thereafter.
FISCAL IMPACT
The proposed First Amendment to Lease sets the monthly base rent payable to $13,223.62 beginning September 13, 2025, and increases by 3% annually thereafter. The monthly operating expense is $363.12 beginning January 1, 2026, and increases annually thereafter. In total $490,474.68 would be collected in base rent during the three-year extension term.
There is no broker commission payment associated with this First Amendment to Lease and there is no tenant improvement allowance.
Ryan Gohlich,
Assistant City Manager
Approved By
Attachment 1
-1-
B0785-0001\3148109v1.doc
FIRST AMENDMENT TO LEASE
THIS FIRST AMENDMENT TO LEASE (this “Amendment”) is dated as of September 9, 2025 (the “Effective Date”), and is entered into by and between the CITY OF BEVERLY HILLS (“Landlord”) and SUN COAST MERCHANDISE CORP., a California corporation (“Tenant”).
R E C I T A L S
A. Landlord and Tenant entered into that certain Office Lease dated April 26, 2022 (the “Lease”) which affects a portion of the building at 239 S Beverly Drive in Beverly Hills, California (the “Premises”).
B. Landlord and Tenant desire to amend the Lease.
A G R E E M E N T
NOW, THEREFORE, in consideration of the foregoing recitals, and the covenants and conditions contained herein, and for other consideration, the sufficiency of which are hereby acknowledged, Landlord and Tenant hereby agree as follows:
1. Extension of Term. The term of the Lease is hereby extended to September 12, 2028.
2. Base Rent. Commencing on September 13, 2025, monthly Base Rent shall be as follows:
Period Monthly Rent
09/13/2025 - 09/12/2026 $ 13,223.62
09/13/2026 - 09/12/2027 $ 13,620.33
09/13/2027 - 09/12/2028 $ 14,028.94
3. Monthly Expense Payments. Commencing on January 1, 2026, Monthly Operating Expense Payments shall be as follows:
Period Monthly Operating
Expense Payment
01/01/2026 - 12/31/2026 $ 363.12
01/01/2027 - 12/31/2027 $ 453.90
01/01/2028 - 12/31/2028 $ 544.68
4. City Manager Authority. The City Manager of Landlord shall have the authority to execute the Amendment to Memorandum of Lease described in Section 5 below, on behalf of Landlord.
Docusign Envelope ID: 5207B680-F0C9-4DEE-A631-BCC89DCED84B -2-
B0785-0001\3148109v1.doc
5. Amendment of Recorded Memorandum of Lease. Upon its execution and delivery of this Amendment, Tenant shall concurrently execute and deliver a duly acknowledged counterpart of an Amendment to Memorandum of Lease in the form attached hereto as Exhibit “A”.
6. DocuSign. The parties may use DocuSign to execute and deliver this Amendment, but Tenant must deliver an executed original of the Amendment to Memorandum of Lease to Landlord, duly acknowledged, so that it can be executed and recorded by Landlord.
7. Brokers. Tenant shall indemnify, defend and hold Landlord harmless from and against any claims that may be asserted against Landlord by any real estate broker, salesperson or finder in connection with this Amendment that is based on any agreements or communications between Tenant and any such real estate broker, salesperson or finder.
8. Conflict. In the event of a conflict or inconsistency between the terms and conditions of the Lease and the terms and conditions of this Amendment, the terms and conditions of this Amendment shall prevail and control.
9. Continuing Effect. Except as specifically modified hereby, the Lease shall remain unaffected and unchanged. The Lease is hereby ratified and affirmed by Landlord and Tenant and remains in full force and effect as modified hereby.
10. Counterparts. This Amendment may be executed in any number of counterparts, each of which, when executed and delivered, shall be deemed to be an original, and all of which, taken together, shall be deemed to be one and the same instrument.
Docusign Envelope ID: 5207B680-F0C9-4DEE-A631-BCC89DCED84B -3-
B0785-0001\3148109v1.doc
IN WITNESS WHEREOF, Landlord and Tenant have executed this Amendment as of the date and year first above written.
LANDLORD: CITY OF BEVERLY HILLS
By:
Sharona R. Nazarian, PsyD, Mayor
ATTEST:
_________________________________
Huma Ahmed, City Clerk
APPROVED AS TO FORM:
_________________________________
Laurence S. Wiener,
City Attorney
APPROVED AS TO CONTENT:
_________________________________
Nancy Hunt-Coffey,
City Manager
TENANT: SUN COAST MERCHANDISE CORP.,
a California corporation
By: _________________________
Dilip K. Bhavnani, COO
Docusign Envelope ID: 5207B680-F0C9-4DEE-A631-BCC89DCED84B A-1-
B0785-0001\3148109v1.doc
EXHIBIT “A”
FORM OF AMENDMENT TO MEMORANDUM OF LEASE
(Attached.)
Docusign Envelope ID: 5207B680-F0C9-4DEE-A631-BCC89DCED84B A-2-
B0785-0001\3148109v1.doc
RECORDING REQUESTED BY, AND
WHEN RECORDED MAIL TO:
City of Beverly Hills
455 North Rexford Drive
Beverly Hills, California 90210
Attn: City Clerk
(Space Above Line For Recorder’s Use)
Exempt from Recording Fees under California Government Code 27383.
AMENDMENT TO MEMORANDUM OF LEASE
THIS AMENDMENT TO MEMORANDUM OF LEASE (this “Amendment”) is dated as of September 9, 2025, and is entered into by and between the CITY OF BEVERLY HILLS (“Landlord”), and SUN COAST MERCHANDISE CORP., a California corporation (“Tenant”).
R E C I T A L S
A. Landlord and Tenant entered into that certain Office Lease dated April 26, 2022 (the “Lease”) which affects a portion of the building at 239 S Beverly Drive in Beverly Hills, California (the “Premises”).
B. A Memorandum of Lease was recorded on as Document No. in the Official Records of Los Angeles County.
C. Landlord and Tenant have entered into a First Amendment to Lease dated September 9, 2025, and desire to execute and record this Amendment of Memorandum of Lease.
A G R E E M E N T
NOW, THEREFORE, Landlord and Tenant hereby amend the Memorandum to reflect that the Lease has been amended as set forth in the First Amendment to Lease, and now has an expiration date of September 12, 2028.
The Lease, as amended, is incorporated herein by this reference.
Docusign Envelope ID: 5207B680-F0C9-4DEE-A631-BCC89DCED84B A-3-
B0785-0001\3148109v1.doc
IN WITNESS WHEREOF, Landlord and Tenant have executed this Amendment.
LANDLORD: CITY OF BEVERLY HILLS
By:
Nancy Hunt-Coffey, City Manager
TENANT: SUN COAST MERCHANDISE CORP.,
a California corporation
By: _________________________
Dilip K. Bhavnani, COO
Docusign Envelope ID: 5207B680-F0C9-4DEE-A631-BCC89DCED84B A-4-
B0785-0001\3148109v1.doc
State of California )
County of Los Angeles )
On _________________________, before me, ,
(insert name and title of the officer)
Notary Public, personally appeared ,
who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument.
I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct.
WITNESS my hand and official seal.
Signature (Seal)
A notary public or other officer
completing this certificate verifies only
the identity of the individual who signed
the document to which this certificate is
attached, and not the truthfulness,
accuracy, or validity of that document.
Docusign Envelope ID: 5207B680-F0C9-4DEE-A631-BCC89DCED84B A-5-
B0785-0001\3148109v1.doc
State of California )
County of Los Angeles )
On _________________________, before me, ,
(insert name and title of the officer)
Notary Public, personally appeared ,
who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument.
I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct.
WITNESS my hand and official seal.
Signature (Seal)
A notary public or other officer
completing this certificate verifies only
the identity of the individual who signed
the document to which this certificate is
attached, and not the truthfulness,
accuracy, or validity of that document.
Docusign Envelope ID: 5207B680-F0C9-4DEE-A631-BCC89DCED84B Certificate Of Completion
Envelope Id: 5207B680-F0C9-4DEE-A631-BCC89DCED84B Status: Sent Subject: Complete with Docusign: 250909 - Sun Coast Amendment 1 Source Envelope:
Document Pages: 8 Signatures: 2 Envelope Originator:
Certificate Pages: 2 Initials: 0 Logan Phillippo
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
9/2/2025 8:55:35 AM
Holder: Logan Phillippo
[email protected]
Location: DocuSign
Signer Events Signature Timestamp
Bruce Galloway for
[email protected]
Security Level: Email, Account Authentication
(None)
Signature Adoption: Pre-selected Style
Using IP Address: 208.87.233.201
Sent: 9/2/2025 9:02:21 AM
Viewed: 9/2/2025 9:03:28 AM
Signed: 9/2/2025 9:03:37 AM
Electronic Record and Signature Disclosure:
Not Offered via Docusign
Dilip Bhavnani
[email protected]
Coo
Sun Coast Merchandise Corp.
Security Level: Email, Account Authentication
(None)
Signature Adoption: Pre-selected Style
Using IP Address: 47.44.172.178
Sent: 9/2/2025 9:02:22 AM
Viewed: 9/2/2025 11:23:04 AM
Signed: 9/2/2025 11:35:14 AM
Electronic Record and Signature Disclosure:
Not Offered via Docusign
Logan Phillippo
[email protected]
Security Level: Email, Account Authentication
(None)
Sent: 9/2/2025 11:35:24 AM
Electronic Record and Signature Disclosure:
Not Offered via Docusign
Nancy Hunt-Coffey
[email protected]
Security Level: Email, Account Authentication
(None)
Electronic Record and Signature Disclosure:
Not Offered via Docusign
Sharona Nazarian
[email protected]
Security Level: Email, Account Authentication
(None)
Electronic Record and Signature Disclosure:
Not Offered via Docusign
Signer Events Signature Timestamp
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
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Carbon Copy Events Status Timestamp
Jonathan Gernes
[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 9/2/2025 9:02:22 AM
Payment Events Status Timestamps