06-24-2019 BPU RPT 14 - Laserfiche WebLink

Home

W A T E R E N E R G Y I L F F E RIVERSIDE PUBLIC UTILITIES 1A_AW._ -'W-. - . . W& Board Memorandum PUBLIC U T I L I T I F 5 BOARD OF PUBLIC UTILITIES DATE: JUNE 24, 2019 ITEM NO: 14 SUBJECT: FIRST AMENDMENT TO COMMERCIAL MULTI -TENANT LEASE — TRIPLE NET MISSION SQUARE WITH SWEET TRIO INCORPORATED DBA THE DONUT BAR — 3750 UNIVERSITY AVENUE, SUITE 175, FOR APPROXIMATELY 2,292 SQUARE FEET OF RENTABLE SPACE FOR A FIVE-YEAR TERM AND OPTION TO EXTEND FOR TWO ADDITIONAL FIVE-YEAR TERMS ISSUE: Recommend that the City Council approve a First Amendment to Commercial Multi -Tenant Lease — Triple Net Mission Square with Sweet Trio Incorporated dba The Donut Bar, for a ten-year term and an option to extend for two additional five-year terms, for approximately 2,292 square feet of rentable space located at 3750 University Avenue, Suite 175. RECOMMENDATIONS: That the Board of Public Utilities recommend that the City Council: 1. Approve the First Amendment to Commercial Multi -Tenant Lease —Triple Net Mission Square with Sweet Trio Incorporated dba The Donut Bar, for a ten-year term and an option to extend for two additional five-year terms, for approximately 2,292 square feet of rentable space located at 3750 University Avenue, Suite 175; and 2. Authorize the City manager, or designee, to execute the First Amendment to Commercial Multi - Tenant Lease — Triple Net Mission Square with Sweet Trio Incorporated dba The Donut Bar, including making minor, non -substantive changes, and to sign all documents and instruments necessary to complete the transaction. BACKGROUND: On October 13, 2015, the City acquired the Mission Square Office Building at 3750 University Avenue (Property), which was funded by Riverside Public Utilities (RPU). As such, RPU is now the landlord of the Property. The Property consists of approximately 127,533 square feet of rentable office and retail space in a six -story building, plus a basement level and a 490 parking stall garage situated on approximately 2.5 acres of land. On January 26, 2016, the City Council approved an Exclusive Authorization of Lease Agreement with Newmark of Southern California, Inc. dba Newmark Grubb Knight Frank (NGKF) to provide broker -leasing services for the Property. RPU staff has been coordinating the leasing process for the Property with the Real Property Services Division of the Community & Economic Development Department and NGKF as the broker for the Property.