City of Sacramento
City Council - 2PM Report
915 I Street Sacramento, CA 95814
www.cityofsacramento.org
File ID: 2025-01221 6/24/2025
Third Amendment to Office Lease Agreement with Skyslope, Inc.
File ID: 2025-01221
Location: 827 K Street, District 4
Recommendation: Pass a Motion: 1) authorizing the Interim City Manager or designee to execute the attached Third Amendment to Office Lease Agreement with Skyslope, Inc. for an additional term of one year for the City-owned real property located at 827 K Street.
Contact: Steve Ward, Real Property Agent, (916) 808-1081, [email protected]; Richard Sanders, Facilities and Real Property Superintendent, (916) 808-7034, [email protected]; James Christensen, Facilities Manager, (916) 808-5863, [email protected]; Department of Public Works Presenter: None
Attachments:
1-Description/Analysis
2-Third Amendment of Office Lease Agreement
Additional Description/Analysis
Issue Detail: The City owned property located at 827 K Street (the “Property”) is a three-story building containing approximately 73,098 gross square feet located in the downtown corridor.
Skyslope, Inc (“Skyslope”) is currently leasing 19,425 square feet on the second floor and their current term is expiring on December 31, 2025. Skyslope has requested to extend the term of the lease for one additional year. To ensure stable rental income at the Property, staff are recommending that the City enter into a Third Amendment of Office Lease Agreement with Skyslope through December 31, 2026.
Policy Considerations: The recommendation in this report is in accordance with City Code section
3.04.020, which requires City Council approval of real property agreements involving expenditures of $250,000 or more.
File ID: 2025-01221 6/24/2025
Economic Impacts: None.
Environmental Considerations: California Environmental Quality Act (CEQA): It has been determined that the proposed activity of entering into an amendment to the lease agreement is not a project pursuant to the California Environmental Quality Act (CEQA) Guidelines Section 15378(b)(2 and 4). The activity described in this report is continuing administrative or activity and government fiscal activity which does not involve any commitment to any specific project which may result in a potentially significant physical impact on the environment. The proposed activity is not subject to CEQA pursuant to CEQA Guidelines Section 15060(c)(3).
Sustainability: Not applicable.
Commission/Committee Action: Not applicable.
Rationale for Recommendation: Skyslope, a Fidelity National Financial subsidiary company, is the leading digital transaction management platform for real estate professionals to collect, store, organize, and review real estate documents from anywhere at any time. Skyslope has occupied the second floor of 827 K Street since 2016 and employs approximately 150 staff from this location. City acquired the property in December 2023 with the original Skyslope lease (as amended) already in place. Execution of the Third Amendment will allow for a one-year extension of their lease which ensures their continued operations at this location through December 31, 2026.
Financial Considerations: The monthly base rent for the extended term running from January 1, 2026, through December 31, 2026, is $26,806 which represents an increase of 3% over current rent.
The leasehold value of the extended term is $321,674. These rental proceeds will be collected by the contracted property management firm (Administrative Services Agreement # 2024-0876-1) and utilized to cover property management fees, on-going repairs & maintenance, building services, and taxes.
Local Business Enterprise (LBE): Not applicable.