06-12-2017 BPU RPT 08 - Laserfiche WebLink

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W A I= R E N E R U Y I I F F PUBLIC UTILITIES BOARD OF PUBLIC UTILITIES RIVERSIDE PUBLIC UTILITIES Board Memorandum DATE: JUNE 12, 2017 ITEM NO: 8 SUBJECT: COMMERCIAL MULTI -TENANT LEASE - TRIPLE NET MISSION SQUARE AGREEMENT WITH MIKE KIM, LAURA KIM AND PARAMOUNT CELLULAR WORLD, LLC, FOR A FIVE-YEAR TERM AT 3750 UNIVERSITY AVENUE, SUITE 110, IN THE AMOUNT OF $169,505.77 ISSUE: Recommend that the City Council approve the Commercial Multi -Tenant Lease — Triple Net Mission Square Agreement with Mike Kim, Laura Kim and Paramount Cellular World, LLC, of Cerritos, California, for a five-year term with an option for a five-year extension, for approximately 1,185 square feet of rentable space located at 3750 University Avenue, Suite 110. RECOMMENDATIONS: That the Board of Public Utilities recommend that the City Council: Approve the Commercial Multi -Tenant Lease — Triple Net Mission Square Agreement with Mike Kim, Laura Kim and Paramount Cellular World, LLC, of Cerritos, California, for a five-year term with an option for a five-year extension, for approximately 1,185 square feet of rentable space located at 3750 University Avenue, Suite 110; and 2. Authorize the City manager, or his designee, to execute the Commercial Multi -Tenant Lease — Triple Net Mission Square Agreement, and the optional five-year extension, with Mike Kim, Laura Kim and Paramount Cellular World, LLC, 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. The space was formerly occupied by Best, Best and Krieger (BB&K) who provided the City with a 30 day notice to vacate the space with an effective termination date of May 12, 2017.