Administrative
Report
H.11., File # 24-1446 Meeting Date: 9/3/2024
To: MAYOR AND CITY COUNCIL
From: GREG KAPOVICH, WATERFRONT & ECONOMIC DEVELOPMENT
DIRECTOR
TITLE
ADOPT BY TITLE ONLY RESOLUTION NO. CC-2407-073, A RESOLUTION OF THE CITY
COUNCIL OF THE CITY OF REDONDO BEACH, CALIFORNIA, LEASING CERTAIN PROPERTY TO ROSENWALD CAPITAL MANAGEMENT, INC., A NEW YORK CORPORATION APPROVE AN AMENDMENT TO THE LEASE WITH ROSENWALD CAPITAL MANAGEMENT, INC.
FOR A MONTHLY MINIMUM RENT OF $3,487 AND A MONTH-TO-MONTH TERM STARTING SEPTEMBER 3, 2024
EXECUTIVE SUMMARY
In March 2012, the City of Redondo Beach (City) purchased the Pier Plaza leasehold and began the process of direct leasing to various tenants. Pier Plaza is comprised of several buildings totaling approximately 75,000 square feet of office and retail uses. The City of Redondo Beach and Rosenwald Capital Management, Inc. (Rosenwald or Tenant) entered into a lease beginning February 19, 2013 for the space located at 121 West Torrance Boulevard, Suite 100 (Premises). The lease area totals approximately 1,550 square feet.
The proposed amendment to the Lease allows for a month-to-month lease term. The City will allow the first month’s rent to be abated for the Tenant to perform its own interior improvements. Monthly rental revenue to the City’s Harbor Uplands Fund will be $3,487 with an annual 3% increase on the anniversary date.
BACKGROUND
The Pier Plaza leasehold is comprised of buildings 103 to 131 West Torrance Boulevard (on the top level of the Pier Parking Structure) and totals approximately 75,000 square feet of space. The property is comprised almost entirely of office uses, with the lone exceptions being a restaurant and child care center. Rosenwald is a financial investment advisory firm managing over $100 million in assets and is registered with the Securities and Exchange Commission.
On February 19, 2013, the City entered into a lease with Rosenwald for the space located at 121 West Torrance Boulevard, Suite 100, consisting of approximately 1,550 square feet. The original term of the lease expired on February 28, 2018, and has remained, in effect, on a month-to-month basis since that date.
The proposed amendment allows for a month-to-month lease term. Monthly rental revenue to the
H.11., File # 24-1446 Meeting Date: 9/3/2024
The proposed amendment allows for a month-to-month lease term. Monthly rental revenue to the City’s Harbor Uplands Fund will be $3,487, or approximately $2.25 per square foot, with an annual 3% increase on the anniversary date.
As a condition of the proposed amendment, the City will allow the first month’s rent to be abated in order for the Tenant to perform interior improvements.
COORDINATION
The Resolution and lease documents were reviewed and approved as to form by the City Attorney’s Office.
FISCAL IMPACT
Lease revenue from the property will accrue to the City’s Harbor Uplands Fund. The proposed First Amendment will result in monthly rent of $3,487, with an annual total of over $38,000.
APPROVED BY:
Mike Witzansky, City Manager
ATTACHMENTS
· Reso - No. CC-2409-073 Leasing Certain Property to Rosenwald Capital Management, Inc. · Exhibit A - Proposed Amendment to the Office Lease between the City of Redondo Beach and Rosenwald Capital Management, Inc.