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THIRD AMENDMENT TO THE PROPERTY
MANAGEMENT AGREEMENT
WITH NEWMARK
City Council
April 25, 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 M anagement 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 and 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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