8J
Date: August 5, 2025
To: Honorable Mayor and Members of the City Council
From: Aram Chaparyan, City Manager
By: Carlos Huizar, Management Associate | [email protected] Subject: City Manager – Approve Assignment and Assumption of Ground Lease and Ground Lessor Estoppel Certificate for City -Owned Property Located at 3455, 3511 and 3525 Pacific Coast Highway. Expenditure: None.
RECOMMENDATION
Recommendation of the City Manager that City Council:
1. Approve an Assignment and Assumption of Ground Lease from JAS Madison I, LLC (“Assignor”), to La Caze Development Company, LLC (“Assignee”) for lease of City-owned property located at 3455, 3511, and 3525 Pacific Coast Highway; and
2. Approve a Ground Lessor Estoppel Certificate to JAS Madison, I, LLC for lease of City - owned property located at 3455, 3511 and 3525 Pacific Coast Highway.
FUNDING
None required.
DISCUSSION
The subject lease is for City -owned property located at 3455, 3511 and 3525 Pacific Coast Highway. The property has been improved as a neighborhood commercial shopping center comprised of two retail pad buildings and a single medical office building, commonly known as Madison Park. The Master Tenant (JAS Madison I, LLC) has requested an Assignment and Assumption Agreement, which would reassign the Leasehold to La Caze Development Company, Inc. As part of this request, the Master Tenant is also requesting an Estoppel Certificate from the City.
1 City Council
August 5, 2025
The Estoppel Certificate is a statement by the City that the Lease is in full force and effect and that there is no material defaults against the Lease. The Certificate also verifies that certain salient points of the Lease are valid, such as:
• Tenant is current on the rent
• That the initial term of the Ground Lease commenced on February 20, 1987 and expires on February 8, 2054
• Memorializes all previous Amendments.
The Assignment and Assumption document and Estoppel Certificate has been reviewed and is recommended for approval.
ATTACHMENTS
1. Assignment and Assumption Agreement (Material Available)
2. Estoppel Certificate (Material Available)
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