Item 199/2026
Final
City of Garden Grove
INTER-DEPARTMENT MEMORANDUM
To:
Lisa L. Kim From: Ursula Luna-Reynosa
Dept:
City Manager Dept: Economic Development and
Housing
Date: 6/9/2026
Subject: Approval of the Second Amendment to the Lease Agreements with Orange County Asian and Pacific Islander Community Alliance, Inc., for office space located at 12966 Euclid Street, Garden Grove. (Action Item)
OBJECTIVE
For the City Council to consider the Second Amendment to the l ease agreements between Orange County Asian and Pacific Islander Community Alliance, Inc. and the City of Garden Grove for the lease of office space in the Garden Office Plaza located at 12966 Euclid Street, Garden Grove.
BACKGROUND
On November 30, 2023, the City acquired the office building and surface parking lot located at 12966 Euclid Street (the “Property”) from LT Properties Company (the “Previous Owner”).
The Property is improved with a five-story office building containing 64,402 rentable square feet. The office building was constructed in 1985, and at the time of acquisition, the building was configured with 25 tenant suites, of which 8 were unoccupied, resulting in a vacancy rate of 32%. Since acquisiti on, the City, as successor in interest to the Previous Owner (the “Lessor”), has renewed certain leases and secured new tenants to occupy the Property. The current vacancy rate is 19% (see Attachment 1).
Orange County Asian and Pacific Islander Community Alliance, Inc. (the “Lessee”) entered into a lease agreement with the Previous Owner on June 7, 2023 (the “Suite 495 Agreement”) to lease Suite 495, consisting of approximately 7,859 rentable square feet. The Lessee entered into another lease agreement with the Previous Owner on September 28, 2023 (the “Suite 425 Agreement”) to lease Suite 425, consisting of approximately 1,905 rentable square feet. As part of the Suite 425 Agreement, the demising wall between Suites 425 and 495 was removed, combining the suites into one connected office space totaling approximately 9,764 rentable square feet. Amendments to both lease agreements were executed on October 21, 2024, aligning the expiration dates for Suites 425 and 495 to June 30, 2026 (collectively, the “First Amendment”). The Lessee is currently the second -largest tenant in the building, occupying approximately 15 percent of the Property.
Item 199/2026
DISCUSSION
The Lessee desires to enter into additional amendments to extend the lease terms for Suites 425 and 495 by twelv e (12) months beyond the current expiration date of June 30, 2026, resulting in a new expiration date of June 30, 2027 (collectively, the “Second Amendment”).
According to the City’s retained leasing agent, the proposed rental rates are consistent with current market rates. The Lessee will renew the leases in an as -is condition, with no Lessor or tenant improvement allowance provided.
Lease Amendment Details
Premises: Suite Nos. 425 and 495, 12966 Euclid Street, Garden Grove, CA 92840. Lease Term: Twelve (12) months, commencing on July 1, 2026, and expiring on June 30, 2027.
Suite 495 Base Rent: $16,661.08 per month.
Suite 425 Base Rent: $4,038.60 per month.
Brokerage: CBRE (the City’s leasing agent) commission is $14,903.77.
FINANCIAL IMPACT
The City wi ll receive monthly lease revenue of $20,699.68 through June 30, 2027. The Lessee’s annual proportionate share of the building’s operating expenses will be 15 percent.
RECOMMENDATION
It is recommended that the City Council:
Approve the Second Amendment to the lease agreements with Orange County Asian and Pacific Islander Community Alliance, Inc. (Lessee), for office space located at 12966 Euclid Street, Garden Grove; and
Authorize the City Manager, or designee, to execute the Second Amendment, including any minor modifications or amendments as appropriate, and any other pertinent documents necessary to effectuate and/or implement the Second Amendment on behalf of the City.
By: Henry Surjono, Administrative Analyst
ATTACHMENT(S)
1. Leasing Chart
2. Second Amendment to the Agreement for Suite 495
3. Second Amendment to the Agreement for Suite 425