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THIRD AMENDMENT TO THE PROPERTY
MANAGEMENT AGREEMENT
WITH NEWMARK
City Council
March 14, 2023
Public Utilities Department
RiversideCA.gov
5 1. 10/13/2015: The City acquired the Mission Square
Building at 3750 University Avenue funded by RPU.
2. 1/26/2016: City Council approved an Exclusive
Authorization of Lease Agreement with Newmark for
a 5-year term to provide broker leasing services for
the Property.
3. 1/26/2016: City Council approved a Property
Management Agreement with Newmark to
provide property management until 2/8/2026.
BACKGROUND
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6 4. 1/7/2020: City Council approved the First
Amendment with Newmark to
amend the compensation and property management
fee to include additional compensation to NKF not
to exceed 5% of the total project cost for performing
project management oversight services
and to negotiate the project management fee for
projects in excess of $1,000,000 in an amount less than 3% of the total project cost for the Mission Square
Office Building.
BACKGROUND
RiversideCA.gov
7 5. 1/5/2021: City Council approved a First
Amendment to California Exclusive Authorization of
Lease Agreement with Newmark which extended the
Agreement through December 31, 2025.
6. 2/2/2021: City Council approved a Second
Amendment to extend the Property Management
Agreement with Newmark to exercise the option to
renew for a term of 5 years.
BACKGROUND
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8 1. The original Property Management Agreement with
Newmark included a salary allocation for the property
manager in the amount of $4,013 per month.
2. There was no provision to increase the salary allocation.
3. Due to the economic climate an d rising labor costs, it is recommended that the property manager salary
allocation be increased to an amount not to exceed
$5,000 per month.
DISCUSSION
RiversideCA.gov
9 Section 7.1. Payment of Account and Section 9:
Compensation/Property Management Fee. The proposed
fee to Newmark is based on the following:
1. Amended to increase the on-site property manager
salary allocation to not exceed five-thousand dollars
($5,000.00) per month.
2. Other: All other terms and provisions of the Agreement, the First Amendment, Second Amendment and Third
Amendment will remain in full force and effect.
3RD AMENDMENT
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10 Strategic Priority 3 – Economic Opportunity
Goal 3.3 – Cultivate a business climate that welcomes
innovation, entrepreneurship, and investment.
Cross-Cutting Threads
STRATEGIC PLAN ALIGNMENT
RiversideCA.gov
11 That the City Council:
1. Approve a Third Amendment to the Property Management Agreement with G&E Real Estate Management Services, Inc., doing business as Newmark, increasing the property manager salary allocation not-to-exceed $5,000 per month for Property
Management Agreement for the Mission Square Office Building located at 3750 University Avenue; and
2. Authorize the City Manager, or designee, to execute the Third Amendment to the Property Management Agreement, including making minor, non-substantive changes, and to sign all documents and instruments necessary to complete the transaction.
RECOMMENDATIONS
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