600-2013 RDA Reso RESOLUTION NO. 600-2013
A RESOLUTION OF THE CHAIRPERSON AND MEMBERS OF THE MIAMI BEACH
REDEVELOPMENT AGENCY("RDA")ACCEPTING THE RECOMMENDATION OF THE
CITY'S FINANCE AND CITYWIDE PROJECTS COMMITTEE ("FCWPC") PERTAINING
TO THE LEASE AGREEMENT BETWEEN THE MIAMI BEACH REDEVELOPMENT
AGENCY("LANDLORD")AND 1560 COLLINS AVENUE,INC.D/B/A SHAN("TENANT"),
IN CONNECTION WITH THE USE OF SUITES B AND C IN THE ANCHOR SHOPS,
LOCATED AT 1560 COLLINS AVENUE, SUITE NO. 2, MIAMI BEACH, FLORIDA
("SPACE")AND APPROVING AND AUTHORIZING THE CHAIRPERSON TO EXECUTE
LEASE AMENDMENT NO. 11, EXERCISING THE RENEWAL OPTION PERIOD,FOR THE
FIVE (5) YEAR PERIOD COMMENCING MARCH 19, 2013 AND ENDING MARCH 18,
2018, BASED UPON THE RENEWAL RENT SCHEDULE APPROVED BY FCWPC.
WHEREAS, Tenant, 1560 Collins Avenue, Inc., a Florida corporation, d/b/a Shan
("Tenant"), currently has a lease with the Miami Beach Redevelopment Agency("Landlord"),dated
October 17, 2007 ("Lease"), for an initial lease term of five (5) years, commencing on March 19,
2008 and ending on March 18, 2013,with one(1)renewal option term for five(5)years("Renewal
Option Period"),for the use of Suites B and C in the Anchor Shops,with a physical address of 1560 Collins
Avenue,Suite 2,Miami Beach,Florida 33139,which space has approximately 2,697 square feet of retail space
("Space"); and
WHEREAS, Tenant desires to exercise its Renewal Option Period;however the Lease does
not address the rent for said period;therefore,during rent negotiations,Tenant has been paying the
Minimum Rent obligations, in accordance with the terms of the initial lease term, pending an
agreement with respect to the Rent for the Renewal Option Period; and
WHEREAS, at the Finance and Citywide Projects Committee meeting of September 19,
2013, Staff presented the Tenant's request to exercise its option for the Renewal Option Period,
based upon a negotiated rent structure(`Renewal Rent"),which the Finance and Citywide Projects
Committee recommended; further directing Staff to finalize a proposed Amendment No. 1 to the
Lease incorporating said Renewal Rent terms for approval by the RDA Board;
NOW,THEREFORE, BE IT DULY RESOLVED BY THE CHAIRPERSON AND MEMBERS
OF THE MIAMI BEACH REDEVELOPMENT AGENCY,That the Chairperson and Members of the
Miami Beach Redevelopment Agency hereby approve and authorize the Chairperson and Secretary
to execute Amendment No. 1 to the existing Lease, exercising the renewal Option Period, for the
five (5) year period commencing March 19, 2013 and ending March 18, 2018, based upon the
Renewal Rent schedule approved by the Finance and Citywide Projects Committee.
PASSED and ADOPTED this 16t' day of October, 2013.
ATTEST:
Rafael E. Gr nado, SECR Y � ':e a t Herrera Bower, CH NPIPPOOB AS TO
t FORM & LANGUAGE
JLM\KGB\MS\GNT :iNCORP RAI-ED. !.,-I FOR EXECUTION
TAAgenda\2013\September 11\RDA oely Suitable han/Shan.RDA Amendment No.1 Reso 1016 13
y Q rnegv,. Date
d
•y.
REDEVELOPMENT AGENCY ITEM SUMMARY
Condensed Title:
A Resolution approving the execution of Amendment No. 1 to the Retail Lease Agreement between the Miami Beach
Redevelopment Agency("Landlord")and 1560 Collins Avenue,Inc.d/b/a Shan("Tenant")for Space in the Anchor Shops,located
at 1560 Collins Ave,Suite 2, Miami Beach,Florida("Space"),exercising the Renewal Option Period for the five(5)year period
commencing March 19,2013 and ending March 18,2018,based upon the renewal rent schedule approved by the city's Finance
and Citywide Projects committee("FCWPC").
Key Intended Outcome Supported:
Increase resident satisfaction with the level of services and facilities.
Supporting Data(Surveys, Environmental Scan,etc.):
Approximately 40%of retail businesses surveyed,rank Miami Beach as one of the best places to do business and 61%of
the same group would recommend Miami Beach as a place to do business.
Issue:
Shall the RDA approve the Renewal Option Period for this Space, based upon the negotiated Renewal Rent approved
bv FCWPC?
Item Summa /Recommendation:
Tenant has proposed to exercise it five(5)year Renewal Option under the lease,for the period from March 19, 2013 through
March 18,2018. During negotiations,Tenant has been paying Minimum Rent,based upon its current rate($47.50/psf);however,
upon approval of the Renewal Option/Renewal Rent structure,commencing November 1,2013,Tenant shall pay the negotiated
Rent,as follows:
Shan Proposal with Miniumum 3%Escalations :annual Rent ?Monthly Rent
Option Yrs. Sp Ft. wA _ Rent/Sa.Ft Collected ;Annual Rent 1(plus sales tax) iTyne „
Year 1 3-19 13/10-31-13 2697 $ 47 50 $ 78,892.87 $ 128,107 $10 675.58 Gross
_. ---w.. _ _ _.. .._.
Year 1 111 1 13/2-28 14 2697 $ 66.41 3 $ 59,702 59 $ 179,108 $14,925.65 Gross
..... ... __ .. ....._ _ _.._.. _....._ }_._.. .._. ._.. p..._ ; ..... ...
Year 2 13-1-2014/2-28-2015 2697 $ 68.40 $ 184,481.00 $ 184,481 $15,373 42 ' Gross
f . ..... .._r_.. .
Year 3 3-1-2015/2-28-2016 2697 $ 70.45 $ 190,015.43 $ 190,015 $15,834.62 Gross
Year4 13-1-2016/2-28-2017 2697' $ 72.57 $ 195,715 90 $ 195,716 $16,309.66 " €'Gross
Year 5 13-1-2017/3-18-2018 2697 $ 74.75 $ 201,587.37 $ 201,587 $16,798 95 !Gross
*Six Month Recapture i $ 25,500
........... ......... __....__ ............................ _.......... ......_............
_. ...... .. ._....._... _.._....... ..._...,._,.... _._ Y.......... ........ __... ....
Total Benefit to Keeping Shan at its current location -$ 935,896 i
Shan's Lease does not include CAM so Shan has increased the rent to$66.41/psf to match the US . ......_
During year one of the Lease, Shan will commence paying the new rate of$66.41/psf on
........... ._._.... ....... ....._.. _._..... ... ....... .... ............. .
November 1,2013;however, under the US Vintage Proposal,the RDA would have had to give Shan a six notice
to move,at Shan's current lease rate of$47.50/psf("Current Rent"),
3
......_. _. .. ,.o...._.-.._- --- ,.-.__. -.. _...
'Six Month Recapture-Savings by leaving Shan in the current space vs.accepting the US Vintage Proposal.
.. ...... ......
$14,925.65-$10,675.58=$4,250.07 x 6=$25,500.42
Pursuant to the recommendation of the FCWPC,having considered the US Vintage Proposal,a 7-Eleven Corporation proposal
and a comparison proposal,based upon current market rental rates,the FCWPC and the Administration recommend executing
Amendment No. 1, approving the Renewal Option Period, based upon the Renewal Rent schedule set forth herein, effective
November 1,2013,and as incorporated in the proposed Amendment No. 1.
Advisory Board Recommendation:
Finance&Citywide Projects Committee,September 19,2013—Recommendation in favor of executing Amendment No.1,
approving the Renewal Option Period, based upon the Renewal Rent negotiated by staff.
Financial Information:
Source of Funds: n/a Amount Account
1 n/a
Financial Impact Summary:
City Clerk's Office Legislative Tracking:
Gisela Nanson Torres, Extension 6955
Sign-Offs:
Depart l fit Diregor Assistant Manager City nager
MS KGB JLM
T:\A NDA 11ctober 16,2013\RDA\Shan Amendment No.1
MIAMI BEA" (L AGENDA ITEM
DATE 10-16-
MIAMIBEACH
City®f Miami Beach, 1700 Convention Center Drive,Miami Beach, Florida 33139,www.miamibeachfl.gov
REDEVELOPMENT AGENCY MEMORANDUM
TO: Chairperson and Members of the Mi i Beach Red velopment Agency
FROM: Jimmy L. Morales, City Manager
DATE: October 16, 2013
SUBJECT:A RESOLUTION OF THE CH RPER ON AND MEMBERS OF THE
MIAMI BEACH REDEVELO ENT AGENCY ("RDA") ACCEPTING
THE RECOMMENDATION OF THE CITY'S FINANCE AND CITYWIDE
PROJECTS COMMITTEE ("FCWPC") PERTAINING TO THE LEASE
AGREEMENT BETWEEN THE MIAMI BEACH REDEVELOPMENT
AGENCY ("LANDLORD") AND 1560 COLLINS AVENUE, INC. D/B/A
SHAN ("TENANT"), IN CONNECTION WITH THE USE OF SUITES B
AND C IN THE ANCHOR SHOPS, LOCATED AT 1560 COLLINS
AVENUE, SUITE NO. 2, MIAMI BEACH, FLORIDA ("SPACE") AND
APPROVING AND AUTHORIZING THE CHAIRPERSON TO
EXECUTE LEASE AMENDMENT NO. 1, EXERCISING THE
RENEWAL OPTION PERIOD, FOR THE FIVE (5) YEAR PERIOD
COMMENCING MARCH 19, 2013 AND ENDING MARCH 18, 20185
BASED UPON THE RENEWAL RENT SCHEDULE APPROVED BY
FCWPC.
ADMINISTRATION RECOMMENDATION
Adopt the resolution.
BACKGROUND
On March 20 2002 the RDA authorized n
a assignment of the Lease from Flagler
System Management, Inc., to CDP Capital/Montreal Mode Investissements, under the
name of 1560 Collins Avenue, Inc., involving the operation of Absolutely Suitable, one of
the first retail businesses to occupy the Anchor Shops since its opening in December,
1998. Absolutely Suitable, which has since been re-branded under the name of Shan
Swimwear, occupies a space having 2,697 square feet, fronting on Collins Avenue,
across the street from the Loews Hotel, selling high-end swimwear and related apparel,
including sun-tanning accessories, hats, skin-care products and sunglasses.
At the time of the assignment, only six years remained on the original lease term,
resulting in the Tenant's request to enter into a new lease, which was approved by the
RDA on October 17, 2007 ("Lease"), with an initial term of five (5) years commencing on
March 19, 2008 and expiring on March 18, 2013, with one (1) renewal option for an
additional five (5) years, upon the expiration of the initial term ("Renewal Option Period").
At the end of the initial term, the gross rent payment was $47.50 per square foot or
$10,667.00 per month, $128,004.00, annually.
Since the current Lease does not address rent during the renewal term, the rent
structure resets to the prevailing market rent. It should be noted that since negotiations
October 16, 2013
Redevelopment Agency Memorandum
Anchor Shops— Shan Swimwear Amendment No. 1
Page 2 of 5
with the Tenant have extended past the March 18, 2013 expiration date of the initial
Lease term, pursuant to the provisions in the Lease, the Term has been extended on a
month-to-month basis at the current rental rate until revised terms are approved by the
RDA for the remaining five-year renewal option.
Based upon an internal analysis of prevailing rents in the area between Collins and
Washington Avenues, between 15th Street and Lincoln Road, as well as along Collins
Avenue, from 12th Street through Lincoln Rd., rents for available retail space range from
a low of $55 to a high of $125 per square foot, with an average of $89.35 per square
foot, quoted on a triple net basis ("Fair Market Rent"), as follows:
Comparable Market Rents for Shan Memo as of July_1_5,_2_013
(Between 15th St.and Lincoln Rd.;from Washington Ave to Collins Ave.;
Along Collins Ave.,from 12th St.through Lincoln Rd.
Address: Sq.Ft Rent/sq.ft._Annual Rent yaiType 'Term Use
1200 Collins Ave 30001 $ 100.00 j $ 300,000 ;NNN "NA ;Retail
1208 Collins Ave 5376 $ 111.61 $ 600,015 i NNN NA Retail
1351 Collins Ave 4500 $ 85.00 $ 382,500 4NNN !NA
1656 Collins Ave ' 3000 $ 125.00 i $_37_5,000 tNNN NA Other
1610 Washington Ave 1847 $ 75.00 ! $ 138,525 NN N NA Retail
1601 Washington Ave 3,917 $ 55.00 $ 215,435 :NNN_;N_A_ lRetail
1542 Washington Ave 5500 $ 82.91 $ _456,005 NNN ANA !Retail
1502 Washington Ave 1741 $ 65.00 $ 1133,,1-6655--NNN NA etail
Total 28881 89.35 2,580,645
'
Source:LoopNet !
* Comparables attached hereto as Exhibit 1"
For further consideration, Staff is providing the RDA with an Anchor Shops — Retail
Tenant Profile as of 10/01/2013, attached hereto as Exhibit "2". You will note that of the
remaining six leases, Vacation Tours located on the corner of Washington and 16th
Street is scheduled to expire in 2014, with no renewal options available; ArtConnection
International, located on 16th Street, is scheduled to expire in 2015, with no renewal
option; Liquor Lounge will expire in five years and has two (2) remaining five (5) year
options and BBQ Beach, Inc. will expire in three years, with one remaining ten (10) year
option. US Vintage, Inc., located on Collins Avenue next to the Tenant, is in the process
of executing a new triple net lease, which was approved by the RDA on September 11,
2013,_having an initial term of three years with two additional renewals of 3 years and 3
years and 364 days, respectively, at the initial base rent of$65/psf, with minimum annual
rent escalations by the greater of CPI or 3%, plus CAM at the initial rate of$1.41/psf.
It is important to differentiate the only other recent triple net lease agreement at the
Anchor Shops, dated October 2, 2012, between the RDA and tenant, Mr. R. Sports, Inc.,
leasing space at 100 16th Street, Suites 1-4, Miami Beach, FL 33139, at the current rate
of $31.00 per square foot. This tenant's rent is lower than the Fair Market Rent for said
Space because Mr. R. Sports, Inc's location fronts 16th Street, instead of Collins Avenue.
In addition, at the time Mr. R. Sports, Inc. negotiated its lease, the space had been
vacant for a period in excess of a year and a half. Mr. R. Sports, Inc. had a successful
October 16, 2013
Redevelopment Agency Memorandum
Anchor Shops— Shan Swimwear Amendment No. 1
Page 3 of 5
track record at its prior location on Lincoln Road, with a strong following in the sports
shoe industry, bringing his brand name recognition as an asset to the Anchor Shops.
At the July 25, 2013 Finance and Citywide Projects Committee ("FCWPC") meeting, the
discussion with respect to the rent for the Renewal Option Period was considered for the
first time by FCWPC. Tenant, citing a reduction in sales since their income stream from
the years prior to 2008, claimed that it could not afford to pay the Fair Market Rent and
proposed to pay gross rent, in the amount of$48.00 per square foot during the first year,
with annual increases thereafter, based upon the CPI index but not to exceed 3% from
the previous year's rent ("Initial Shan Offer"). At this time, US Vintage also presented
Staff with an offer to lease the Tenant's space for $65.00 per square feet, on a triple net
basis, with annual rent increases, by the greater of 3% or CPI, based upon a lease term
of ten years ("US Vintage Proposal"). US Vintage is already leasing the space abutting
Tenant's current space and sells clothing for men, women and juniors, weekend wear,
designer shoes, perfumes, eyewear, and Miami Beach souvenirs. The US Vintage
Proposal was recommended by FCWPC.
Thereafter, Tenant's Montreal-based parent company made the business decision to
keep its presence in Miami Beach, Florida and fund any shortages which Shan may
have during the renewal term, as they had seen steady increases in the gross revenues
in the past months.
Based upon this decision, at the September 19, 2013 FCWPC meeting, Tenant
submitted a proposal to renew its Lease ("Shan Proposal"), based upon comparable
rental terms to those of the US Vintage Proposal ("Renewal Rent"), as follows:
Shan Proposal with Miniumum 3%Escalations —�An—nuaall Rent l onthly Rent
Option Yrs. ,Sq.Ft. Rent/Sq.Ft. C� ollected iAnnual Rent (plus sales tail Type
Year 1 3-19-13/10-31-13 2697 $ 47.50 1 $ 78,892.87 , $ 128,107 i $10,675.58 1 Gross
Year 1 11-1-13/2-28-14 2697 $ 66.41 $ 59,702.59_? $ 179,108 ! $14,925.65 Gross
Year 2 3-1-2014/2-28-2015 2697, $ 68.40 $ 184_,481.00 $ 184,481 i $15,373.42 Gross
Year 3 3-1-2015/2-28-2016 2697 $ 70.45 , $ 190,015.43$ 190,015 , $15,834.62 Gross
Year4 3-1-2016/2-28-2017 2697 $ 72.57 $ 195,715.90 i _$ 195,716 $16,309.66 Gross _
Year 5 3-1-2017/3-18-2018 2697 $ 74.75 $ 201,587.37 $ 201,587 $16,798.95 1 lGross
*Six Month Recapture ; $ 25,500
I�V
Total Benefit to Keeping Shan at its current location $ 935,896
Shan's Lease does not include CAM so Shan has increased the rent to$66.41/psf to match the US Vintage Offer.
"During year one of the Lease, Shan will commence paying the new rate of$66.41/psf on Ti
November 1, 2013; however, under the US Vintage Proposal, the RDA would have had to give Shan a six notice
to move, at Shan's current lease rate of$47.50/psf("Current Rent"), p—r�--
i
*Six Month Recapture-Savings by leaving Shan in the current space vs. accepting US Vintage Proposal
1$14,925.65-$10,675.58= $4,250.07 x 6=$25,500.42
At the September 19, 2013 FCWPC meeting, Staff additionally presented the US
Vintage Proposal; a New Tenant Proposal, based upon Fair Market Rent; and a
previously submitted proposal from 7-11, Inc., all based upon a five year period, as
follows:
October 16, 2013
Redevelopment Agency Memorandum
Anchor Shops— Shan Swimwear Amendment No. 1
Page 4 of 5
US Vintage Proposal with Minimum Woo'Annual Escalations
Sa.FT. Rent/Sq.Ft.
Years 1 2697 $ 65.00 $ 175,305 N N N Retail
Years 2 2697 $ 66.95 J $ 180,_ 564 INN Retail
Years 3 2697 $ 68.96 $ 185,981 NN Retail
Years 2697 $ 71.03 $ 191,561 'NNN Retail
Years 5 2697 $ 73.16 $ 197,307 N N N Retail
Total i _ $ 930,718
In addition, US Vintage would be paying CAM at the initial rate of$1.41/psf, which makes
the total payment for the first year$66.41/psf. —�� �T I
New Tenant Proposal-Best Case Scenario,based upon five year Lease with 30%CPI increases
Sq.Ft. Rent/Sq.ft.I_ i Rent Type '11 Use
Years 1 �� 2697T $ 89.35 ` $ 240,977 INNN Retail
Years 2 2697 $ 92.03 $ 248,206
• Years 3 2697 $ 94.79 l $ 255,652
Years 4 2697 $ 97.64 $ 263,322
Years 5 2697 $ 100.56 $ 271,222 `
Total Rent for Five years I j $ 1,279,379
Less Commissions $ (51,175.17)
Less Six months of Rent Concess $ (120,488.48)
Less nine month vacancy during marketing I $ (180,732.71)
Less Built Out Concessions J_J$ (50,000.00)J_J
Net Rent to City at end of 10 years $ 876,983
On or about September 22, 2012, staff received a letter of Intent, for a proposed lease
between the City and 7-Eleven, Inc. (7-11 Offer"), in connection with the subject Space,
for an initial lease term of five years, with four additional lease options of five years each
(with a 10% rent increase during each renewal term), for a total maximum lease term of
twenty-five years. The proposal was based upon a site with 2,000 square feet; however,
the subject site has 2,697 square feet. The proposed rent for the initial five years is
$73.00 per square foot, on a triple net basis. Assuming the offer applied to the entire
space, triple net rent, pursuant to the 7-11 Offer, would be $196,881.00/year and
$16,406.75/mo, with a total five year rental income of$984,405.00.
Total Rental Income for five years: $984,405.00
Less expenses in connection with said five years:
1. Landlord Construction allowance $ 50,000.00;
2. Rent Commencement delay of six months $ 98,440.50;
3. Real estate commission for initial five year lease term (4%)$ 39,376.20;
Total Expenses $187,816.70
Net Rental Income at end of the initial five year term: $7969588.30
Based upon the aforementioned, FCWPC recommend moving forward with the Tenant's
Proposed Renewal Rent schedule, in that, monetarily the Shan Proposal matches the
US Vintage Proposal and it would keep the diversity of merchandise being sold at the
f
October 16, 2013
Redevelopment Agency Memorandum
Anchor Shops— Shan Swimwear Amendment No. 1
Page 5 of 5
Anchor Shops, while at the same time diversifying the risk of a default. Shan is current
in its leasehold obligations and has been a compliant Tenant throughout its tenancy.
RECOMMENDATION
The Administration recommends that the Chairperson and Members of the Miami Beach
Redevelopment Agency approve a resolution accepting the recommendation of the
City's Finance and Citywide Projects Committee, approving and authorizing the
Chairperson to execute Amendment No. 1 to the Lease between the Miami Beach
Redevelopment Agency ("Landlord") and 1560 Collins Avenue, Inc. d/b/a Shan
("Tenant"), involving Suites B and C in the Anchor Shops, having a physical address of
1560 Collins Avenue, Suite 2, Miami Beach, Florida 33139 ("Space"), exercising the
Renewal Option Period, for the five (5) year period commencing March 19, 2013 and
ending March 18, 2018, based upon the Renewal Rent schedule approved by FCWPC.
A copy of the proposed Amendment No. 1 to the Lease is attached hereto and made a
part hereof as Exhibit 'W'.
It should further be noted that since Anchor Garage and Shops is owned by the RDA, it
is not subject to the public hearing requirements set forth under Section 82-39 of the City
Code that would normally apply to the lease of City property. Proposed retail leases
involving the Anchor Shops may be approved during and as part of the RDA Board's
regul r genda.
JLM174 NT
F:\$All\RHCD\Asset\Anchor_Ret\Absolutely Suitable_Shan/Shan RDA Renewal Memo 10162013
Enclosures:
-Market Comparable Summary Matrix-Exhibit"l"
-Anchor Shops Retail Tenant Profiles as of 0410112013—Exhibit"2"
-Letter of Intent from 7-Eleven, Inc. —Exhibit"3"
-Proposed Amendment No. 1 to Retail Lease Agreement—Exhibit"4"
Prepared for Presented by Gisela Torres
Miami Beach-office of Real Estate,Housing&
7/10019 Community Development
(305)673-7000
giselatorres@miamlbeachfl.gov
Properties for Lease
Address 1208 COLLINS AVE 1502 Washington 1601 Washington 1200 Collins Ave 1656 Collins 1351 Collins
Miami Avenue Avenue Mlami Avenue Avenue
Beach,F133139 Miami Miami Beach,FL33139 Mwrni Miami
Beach,FL33139 Beach,FL33139 Beach,FL33139 Beach,FL33139
Retail Retail Retail Retail Retail '
Property Type Retail '
Property Subtype Free Standing Bldg Restaurant Strip Center Restaurant Street Retell Restaurant
Zoning
Building Size 11,378 SF Bldg 1,741 SF Bldg 5,822 SF GLA 15,000 SF Bldg 16,726 SF Bldg 16,186 SF Bldg
1941
Year Built
No.Stories
7,000 SF i
Lot 8118
APN I Parcel ID
Space Available 5.376 SF 1,7413E 823-3,094 SF 3,000 SF 3.000 SF 4,500 SF
Asking Rent $111.61 ISFNr $651SFNr $65/SF1Yr $100/SF/Yr $125lSF/Yr $85/SF1Yr
1 Space 1 Space 2 Spaces 1 Space 1 Space 1 Space
Spaces
Property -Iconic;stand alone Fully built out Located one block Great turnkey class With frontage along Nearly 40 feet of
Description retail building in the Fully brent space south of Lincoln A restaurant space Collins Avenue,this frontage on Collins
heart of South with all Impact fees Road.Within in the heart of newly available Avenue.High
beach-Inc edibile paid Ideal cafib walking distance of south beach.The Sublease space visibility to the
visibility and space with large retail shops and Marlin Hotel is one has dedicated 27,000 cars that
fronts a on Collins outdoor seating restaurants. of the world HVAC,Electric,Store trealong this
North/South
i Ave Floor to ceiling area Adjacent to famous icons on Bathrooms,Sto primary
windows with.i Five Guys Burgers Miami Beach and Entrance and more. corridor daily.
and Fries... hosts fir... Space was...
Location -Nearby tenants Compbtery On the northeast Marts Hotel at the Across the street Adjacent to the
Description Include:Bamsy's renovated building corner of corner of Collins from the Ritz Clifton and
Co-op,Guess, Near Llncotn Road Washington Avenue and 12th Carlton and steps neighboring several
Puma,Banana and the City Center Avenue and 16th street away from many of other holes)
Republic,Diesel, area with abundant Street the World's Leading Including the
Armani AlX, office space and hotels.Parking Is Beachcomber,
Quicksilver, hotels in the available in South Beach Plaza,
Victoria's Secret- immediate area numerous nearby Dream South
Next door to luxury lots.On the comer Beach,Kent and
mufti-brand of Lincoln Road& Lords.One block
mul
bout-bra The Collins Avenue. west of Ocean
Drive,one block
Webster
Notes
EXHIBIT 1
C2017 Gisela Torres.Warm Beech•Office of Rest Estate ffout,ng d Community Dacalopmem
Address 1610 Washington 1542 Washington
Avenue Ave
vow warm
Beech,FL33139 Beach,RM139
Property Type Retail Retail
Property Subtype Retail(Other) Restaurant
Zoning
Building Size 266,729 SF Bldg 5,108 SF Bldg
Year Built
No.Stories
Lot Size 84,639 SF 6,520 SF
APN/Parcel ID
Space Available 1,847 SF 5,5w SF r
Asking Rent $75/SF/Yr $82.91/SF/Yr
1
Spaces 1 Space 1 Space
Property Frontage along High-end
Description Washington restaurant/private
Avenue.Space dub.All new built-
consists of a out kitchen with
ground floor and equipment$1001(
mezzanine level for granite statue,
r a total of 1,647 water walls pool,
square feet.Co- reclaimed wood
tenancy with and granite Roo...
McDonald's...
Location Located one half Miami Beach prime
Description block from Lincoln location within
Road.Project walking distance to
includes a now the beach,Lincoln
600•space parking Road and Espafiola
garage.Strong Way•
pedestrian traffic of
20,000 at the
corner of Lincoln
Road and
Washington
Avenue.
Notes
02013 Olson Torros.Mlam.Beach office of Real Estate.wousm0 8 COmmtindy Dayetopmens
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EXHIBIT 2
aMn
_;,�.
7-Eleven,Inc.
September 22nd,2012
City of Miami Beach
CITY HALL
1700 CONVENTION CENTER DR
MIAMI BEACH FL
33139-1819
Re: Letter of Intent—Building Lease
1560 Collins Ave. Miami Beach,FL—Space currently occupied by Shan Swimwear in the building commonly
known as Anchor Shops
Dear City of Miami Beach,
The following is a summary of prospective terms and conditions relative to a proposed lease agreement between City of
Miami Beach("Landlord')and 7-Eleven,Inc.("Tenant"). This Letter of Intent has been prepared to set forth the business
terms that will form the basis of negotiation of an agreement between the parties and this Letter of Intent is not intended to
create a legally-binding obligation or commitment on the part of either party hereto.
LANDLORD: City of Miami Beach
TENANT: 7-Eleven,Inc.
One Arts Plaza
1722 Routh Street,Suite 1000
Dallas,Texas 75201-2506
LEASE: Tenant form of Building Lease
BUILDING: 1560 Collins Ave,Miami Beach,FL,as shown on the Preliminary Site/Floor Plan
attached hereto as Exhibit A.
PREMISES: Approximately 2,000 square feet of ground floor retail space as shown on the Preliminary
Site/Floor Plan. i
SITE PLAN: Landlord and Tenant will confer and agree on a mutually acceptable final site plan(s)for
the Premises.
LEASE TERM: 5 years ;I
In the event that Tenant is delayed in its construction or build-out of the Premises due to
any act or omission of Landlord,its agents,contractors or employees,or as a result of any
condition existing at the Shopping Center as of the date hereof(a"Landlord Delay"),
then the aforementioned(60)day period shall be extended three(3)days for every day of
Landlord Delay,or Tenant may terminate the Lease and be reimbursed all expenses in
pursuing the lease.
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EXHIBIT 3
JPEARCE16962567.3/087509.0001 1
OPTION FOR Four(4)options periods of five(5)years consecutive,each exercisable upon no less than
EXTENDED TERMS: 120 days prior written notice.Tenant shall have 6 months free rent as a remodel
allowance in years 11 and 21 if option(s)to extend is/are exercised
BASE RENT: Years 1-5:$147,000/yr (based on 2,000 sq ft)
Tenant shall be provided a rent reduction if the Building is less than seventy percent
(70%)leased.
Base Rent shall increase ten percent(10%)following the primary term and upon every
five(5)years thereafter.
RENT Rent will commence one hundred eighty(180)days following the latter of(a)the date all
COMMENCEMENT: necessary permits for construction of the Premises are obtained(see conditions)or(b)the
date of Delivery(as defined in attached Construction Addendum).
USE: The Premises may be used up to twenty-four(24)hours per day for the retail sale,rental or
provision of merchandise and services customarily sold,rented or provided from time to
time,at stores operated or franchised by Tenant or any other lawful purpose which is not in
direct conflict with any exclusive uses granted to other tenants or occupants of the Building
prior to the parties commencement of Lease negotiations.
CONDITIONS This lease is subject to Tenant's ability to satisfy its conditions for construction and opening
of a 7-Eleven Store in the Premises.
Conditions:
a. Receipt of all permits and licenses to open and operate a 7-Eleven Store.
b. Property to be delivered clear and free of all hazardous materials per Tenant's
satisfaction.
c. Landlord to deliver a clean Title Report to Tenant
Tenant will have the limited right to enter upon the premises during negotiation of the lease
to conduct such testing as may be appropriate to satisfy the above conditions. If Tenant
does not indicate satisfaction with the conditions within 60 days of Lease execution,
either party may terminate the Lease.
EXCLUSIVES: Landlord will not permit any occupant of the Building,other than existing tenants
identified in the Lease and Tenant,to(i)operate a business which provides or offers,
banking or other financial services or(ii)offers for sale or rental,in connection with all or
any part of its business operations,any grocery items,including snacks,foods and beverages
commonly sold at a first class convenience store cigarettes and tobacco products,unless
vended by machine;beer and wine for off premise consumption;health and beauty aids;
frozen or semi-frozen carbonated beverages;candy,unless gift boxed or sold in bulk;coffee
or hot chocolate by the cup,newspapers,magazines and paperback books;lottery ticket,
money orders,phone cards;and gift/cash cards(other than gift cards for the particular
business occupying the space)..
LANDLORD'S WORK: Landlord's work at the Premises will be constructed in accordance with the Construction
Addendum attached hereto. Landlord shall deliver the Premises to Tenant with
Landlord's Work complete on or before the date that is 60 days following Tenant's
satisfaction or wavier of the Conditions,with late delivery subject to some of all of the
following consequences to be specified more fully in the lease:three(3)days free rent for
every day Landlord is late,termination and reimbursement to Tenant of Tenant's
expenses incurred in pursuing the Lease,and the right of Tenant to assume the work and
be reimbursed fully by Landlord plus an administrative fee.
TENANT IMPROVEMENT Landlord will contribute to Tenant's construction costs an allowance of$25.00 per square
ALLOWANCE: foot of the Premises.
JPEARCF/69625673/087509.0001 2
TENANT'S IMPROVEMENTS: Tenant may make alterations,and install such improvements and FF&E in the Premises
as Tenant deems necessary or desirable for Tenant's operations,consistent with Tenant's
current trade dress and standards. Tenant may remove its improvements and FF&E when
it vacates the Premises.
MAINTENANCE: Landlord will maintain at its sole expense the exterior,roof,foundation,slab and
structural soundness of the Building,and any heating and air conditioning equipment
(unless installed by Tenant).
Tenant will maintain in good repair,at Tenant's sole expense the interior and exterior non-
structural portions of the Building,including electrical,plumbing,heating and air
conditioning equipment(if installed by Tenant).
TAXES: Tenant shall pay all taxes on its personal property. Tenant shall reimburse Landlord for
all taxes and assessments levied against the Premises,based on the square footage of the
Premises in proportion to the total square footage of all buildings within the applicable
tax parcel(Pro Rata Share).
UTII.ITIES: Tenant shall pay all charges for electric,gas(if applicable),water,sewer,cable and
telephone utilities serving the Premises. Landlord shall provide separate utility company
meters or sub-meter(excluding telephone and sewer)to the Premises.
COMMON EXPENSES: Tenant shall pay its pro rata share of common area maintenance charges("Common
Expenses"). The estimated expenses for Common Expenses(including taxes and
insurance)are currently$3.00 per square foot annually. The first year of Common
Expenses shall not exceed such estimate and annual increases in Common Expenses shall
not exceed 3%on a non-cumulative basis. Common Expenses shall not include any
management or administrative fees and shall be determined in accordance with Generally
Accepted Accounting Principals(GAAP). Capital expenditures that do not pertain to
common area maintenance shall not be charged to Tenant in any manner. Tenant shall
not share in any expenses for elevators,stairwells or other common areas that are not
used by Tenant. Tenant shall have audit rights as provided in the Lease.
SIGNAGE: Subject to Tenant's receipt of any required local governmental approvals,Tenant may
install its standard signage. Tenant shall share in all common signage,and shall be
allowed promotional banners and awnings in and around the Premises and common area
in connection with its grand opening programs during the first 12 months of the Term.
ASSIGNMENT AND Tenant shall have the right to assign the Lease or sublease the whole or any part of the
SUBLETTING: Premises,provided Tenant shall remain primarily liable for the payment and performance
obligations under the Lease.
SALE OF PREMISES: If Landlord decides to market the Premises for sale,Landlord shall notify Tenant on or
before listing the Premises for sale and provide Tenant a right of first refusal.
BROKER: Landlord and Tenant warrant that they have had no dealings with any real estate
broker(s)or agent(s)in connection with the negotiation of this transaction except for
Behar Real Estate Group,Inc.who represent the Tenant. Behar Real Estate Group,Inc.
shall be compensated by Landlord per separate agreement.
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Within 5 days following the date of Landlord's execution of this Letter of Intent,Landlord shall provide Tenant with copies !
of the following,to the extent in Landlord's possession: (i)all surveys pertaining to the Premises and the Building;(ii)all
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JPEARCE/6962567.3/087509.0001 3
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association requirements,declarations,covenants and/or rules(if any)governing the Premises and Building;(iii)the most
current title commitments or binders pertaining to the Premises and Building; (iv) all environmental reports and records
applicable to the Premises.
Landlord agrees not to negotiate with any other prospective tenant for the Premises while negotiating the lease agreement
with Tenant I look forward to your confirmation of these terms and to proceeding with the preparation of a formal lease
agreement.
Sincerely,
Cale
7-Eleven Real Estate Manager
Approved this 24`h day of September,2012
LANDLORD: City of Miami Beach
By:
Name:
Title:
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JPEARCE/69625673/087509.0001 4
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LANDLORD'S WORK AND CONDITION OF PREMISES
Conditions of Premises:
Tenant will provide the Landlord notice, in writing, the scope of work and specifications for the
following requirements, outlining the details of the existing conditions for each item listed that Landlord
will be required to repair prior to delivery of the Premises. Tenant shall deliver notice to Landlord prior
to the expiration of the Preliminary Term of the Lease.
• STRUCTURAL: Landlord shall be responsible for the baseline structural integrity of the
building and structures to be used by, surrounding, or affected by, Tenant, their use,
equipment and loading. Minimum load to meet or exceed building codes when built for retail
floor space(100 lbs. per square foot minimum.)
■ ROOF: Landlord shall be responsible for maintaining the roof and building such that Tenant's
space and common areas remain watertight. Landlord shall provide roof certification providing
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the results of a water tightness test and roof inspection.
■ ENTRANCES, EGRESSES AND COMMON AREAS: Landlord shall be responsible for
maintaining all building entrances and egresses, including stairs, walkways, sidewalks, and
common spaces.
Landlord shall upgrade, maintain and irrigate the landscaping throughout the center with low
maintenance plantings. j
Landlord shall repair any cracks in the parking lot, repave and restripe the parking lot.
Landlord to provide exterior lighting and lighting of the exterior signage from dusk to dawn with
the maximum allowable foot-candles by code or average 10 luminaries per square foot
throughout the parking lot.
Landlord warrants to the best of their knowledge that all handicap ramps and Shopping Center
are ADA compliant.
Landlord shall repair and damaged fascia and soffit directly around the Premises.
Landlord shall repaint the exterior of the Shopping Center every two years and prior to
Tenant's acceptance of the Premises.
Landlord's Work:
The following work outlined will be considered Landlord's Work to demise the Premises for Tenant's
use of the Premises. The following work will be permitted and constructed by Landlord at Landlord's
expense as part of the Delivery Date.
• ELECTRICAL SERVICE: Landlord to provide Tenant with separately metered dedicated 600
amp, 120/208 volts, 3-phase, and 4-wire electrical service to be located in Tenant's space.
Service to be brought to a MDP(main disconnect panel)with service disconnect.
• E NVIRONMENTAL SURVEYS AND ABATEMENT: The Landlord to provide Tenant's
environmental consultant access to all areas to be disturbed by Tenant construction activities
including the lease area, common areas and areas for utility/HVAC and refrigeration
equipment and penetrations, mechanical, electrical and plumbing lines and penetrations,
sign/exterior lighting facades and penetrations, etc. Tenants consultant may provide a lead
]PEARCFJ6962567.3/087509.0001 S
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and asbestos survey at Tenant's expense. Landlord shall be responsible for abatement of
lead and asbestos as identified to be abated and shall provide Tenant with a confirmatory
report before acceptance of Premises in accordance with State guidelines.
• WATER SERVICE: Landlord shall provide Tenant with a dedicated water service and water
meter. Service size and type shall be one inch (1") copper or PE. Service upgrades shall be
the responsibility of the Landlord, the location shall be mutually agreed to between the
Landlord and Tenant. Details of existing service to be provided by Landlord including service
type, size, age, condition, account number, configuration by providing the As-Built surveys for
the Center. The Landlord to provide access to Tenant and their contractor to investigate the
adequacy of the service.
• STORM AND SANITARY SEWER SERVICE: Landlord to provide sanitary waste disposal
systems and grease trap with adequate capacity to accommodate unimpeded flows from
Tenant's restrooms, equipment and floor..drains as required by code and Tenant's
development plans. Minimum service size and slopes shall accommodate 20 gallons per
minute sanitary waste flow. Location for
connections to services to be identified y
m ry
Landlord on plans. Any modifications or tie-ins outside the demised space will be the
Landlord's responsibility. Modifications, connections or disconnects of any roof or storm
drains will be the responsibility of the Landlord.
• HEATING/COOLING AND REFRIGERATION EQUIPMENT: Landlord to provide 15 tons of
HVAC equipment and duct work as specified by Tenant. Landlord will allow Tenant roof
access-for its remote condensing units for refrigeration and HVAC units.
• FIRE PROTECTION SYSTEMS AND ALARMS AND BUILDING IMPROVEMENTS:
Landlord will be responsible for designing, permitting, connections, installations, testing and
certifications of all fire alarm and central monitoring systems as required by applicable codes,
laws, regulations and/or jurisdictional agencies. Landlord to provide: alarm plans, current fire
alarm tests and certifications by licensed fire alarm and the contact information for the
Landlord's alarm and central monitoring contractors.
• TRASH: Landlord to provide 2 dumpsters to accommodate recycling and regular trash.
DEMISING WALLS: Landlord shall provide demising walls to the underside of
the roof with metal studs and drywall taped and sanded to the floor. Walls shall cant'a fire rating as
per local code. Walls shall be insulated (R19).
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JPEARCFJ6962567.3/087509.0001 6
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COM MISSION AGREEMENT
THIS AGREEMENT made as of September 23,2012 by and between City of Miami Beach("Owner")having an
address of 1700 Convention Center Drive Miami Beach,FL 33139 and BEHAR REAL ESTATE GROUP,INC.
having an address at 18321 West Dixie Highway Suite 204 Miami,FL 33160(`Broker").
WITNESSETH:
WHEREAS,Owner is the owner of a certain property located at 1560 Collins Ave,Miami Beach,FL 33139(Folio
#:02-3234-019-1090;Legal Description:ALTON BEACH 1ST SUB PB 2-77 LOTS 8 THRU 13 BLK 57 AKA
LOEW'S PARKING GARAGE LOT SIZE 65701 SQ FT)
WHEREAS,Broker is hereby registering and is negotiating for the benefit of Tenant a lease("the Lease")for the
certain premises(the"Leased Premises")at the Property comprising approximately 2000+/-Square Feet(the"Floor
Area")with 7 Eleven,Inc.and/or assigns(The"Prospective Tenant");and
NOW,THEREFORE,in consideration of the mutual covenants herein contained and other good valuable
consideration,the receipt and sufficiency of which are hereby acknowledged,it is as follows:
1. Subject to the terms and conditions set forth in this Agreement;Owner(City of Miami Beach)
shall pay Broker(Behar Real Estate Group,Inc.),and Broker(Behar Real Estate Group,Inc.)
shall accept,as its full and complete compensation for procuring the Lease contemplated
herein with the Prospective Tenant(7 Eleven,Inc.and/or assigns),a commission equal to
Four percent(4%)of the aggregate net lease value for the initial term that Owner collects rent
(the"Commission")which shall be payable as follows:
(i) Fifty Percent(50%)of the Leasing Commission shall be due upon full execution of the lease.
(ii) Fifty Percent(50%)of the Leasing Commission shall be due upon Tenant opening for business.
In the event Tenant exercises its First Option Term,Landlord shall pay Behar Real Estate Group,
Inc.a commission equal to three percent(3%)of the aggregate net lease value for said term.
In the event Owner sells Property prior to complete payment of the full Commission,said
Commission balance shall be due to Broker upon sale of Property.
2 The Commission shall be earned and paid to Broker in the manner set forth above.Any amount of
commission that remains unpaid for more than thirty(30)days after coming due shall bear interest at a
rate of 18%until said balance(including accrued interest)is paid in full.
3 The lease(s)evidencing this transaction shall provide that should any part of the Commission not be
paid within fifteen(15)days from its due date,Behar Real Estate Group,Inc. may notify Prospective
Tenant of Landlord's non-payment and Prospective Tenant shall have the right to pay the unpaid
commission amount directly to Broker as an offset against any rent due under the Leases(s).
4 The covenants and agreements contained herein shall apply to,insure to the benefit of,and be binding
upon the parties hereto and their respective heirs,personal representatives,successors and assigns.
5 The signatories of this document each represent that he or she is an officer of the party he or she
represents,and is duly authorized to execute this Agreement.
6 Broker represents and warrants that they are licensed in the State of Florida.
7 Owner represents that Behar Real Estate Group,Inc.represents the Tenant and Koniver Stem
represents the Owner and are the only brokers that Owner has dealt with in connection with this
transaction and agrees to indemnify Brokers against any claims,which may be brought as a result of
this transaction.
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8 In the event of any dispute between the parties arising out of or in connection with this Agreement,the
prevailing party shall be entitled to recover its reasonable attorneys' fees and costs incurred in
connection therewith from the other party.
9 The Florida Commercial Real Estate Licensing Commission Lien Act provides that when a broker has
earned a commission by performing licensed services under a brokerage agreement with you,the
broker may claim a lien against your interest in the property of the broker's commission.The broker's
lien rights under the act cannot be waived before the commission is earned.
10 This Agreement contains the entire agreement between the parties hereto with respect to the subject
matter hereof.This Agreement may not be modified,changed or supplemented,and no obligation
hereunder may be waived,except by a written instrument signed by the party against whom the
enforcement is sought.
IN WITNESS WHEREOF,the parties hereto have executed this Agreement as of the date first above written.
LANDLORD:City of Miami Beach WITNESS'
Name
City of Miami Beach
Name
BROKER:Behar Real Estate Group,Inc. WITNESSES:
David Behar,President Name
Behar Real Estate Group,Inc. Name
Faxed,Portable Document Format or electronic signatures are acceptable as authentication.
AMENDMENT NO. 1 TO RETAIL LEASE AGREEMENT BETWEEN THE MIAMI BEACH
REDEVELOPMENT AGENCY AND 1560 COLLINS AVENUE, INC., DATED OCTOBER 17,
2007, INVOLVING THE LEASE OF APPROXIMATELY 2,697 SQUARE FEET OF GROUND
FLOR RETAIL SPACE AT THE ANCHOR SHOPS GARAGE, LOCATED AT 1560 COLLINS
AVENUE, SUITE NO. 2. MIAMI BEACH, FLORIDA 33139
This Amendment No. 1 to Retail Lease ("Amendment"), is made and executed as of this 16th
day of October, 2013 ("Effective Date"), relating to a lease dated October 17, 2007 (the
"Lease"), by and between the MIAMI BEACH REDEVELOPMENT AGENCY, a public body
corporate and politic ("Landlord") and 1560 Collins Avenue, Inc., a Florida corporation, d/b/a
Shan ("Tenant"), relating to approximately 2,697 square feet of ground retail space, described
as Suites B and C of The Anchor Shops, having a physical address of 1560 Collins Avenue,
Suite 2, Miami Beach, Florida 33139 ("Premises").
RECITALS:
WHEREAS, on or about October 17, 2007, the Miami Beach Redevelopment Agency
("RDA") executed the Lease in connection with the Premises, for an initial lease term of five (5)
years , commencing on March 19, 2008 and terminating on March 18, 2013, with one (1)
renewal option of five (5) years; and
WHEREAS, on September 19, 2013, the Finance and Citywide Projects Commission
Committee ("FCWPC") recommended that the RDA renew the Lease for the remaining five year
option period, based upon an initial Minimum Rent of $66.41 per square foot with subsequent
annual rent escalations by the greater of the CPI Index increase or 3% ("Renewal Rent"); and
WHEREAS, during the rent negotiations, in connection with determining the Renewal
Rent, Tenant has been paying the Minimum Rent, as determined for the final year of the initial
lease term, in the amount of$47.50 per square foot, $11,423.00 per month, plus sales tax; and
WHEREAS, on October 16, 2013, pursuant to Resolution No.
, the RDA approved the recommendation of the FCWPC,
authorizing the Chairperson to execute this
Amendment, exercising the renewal option period, commencing March 19, 2013 and
terminating March 18, 2018 ("Renewal Term"), based upon the recommended Renewal Rent.
NOW THEREFORE, Landlord and Tenant, in consideration of the mutual covenants,
agreements and undertakings herein contained, do by these presents mutually covenant and
agree to amend the Lease, based upon the following terms and conditions:
1. Tenant hereby exercises the Renewal Option and Landlord hereby approves said
Renewal Option under the Lease, pursuant to paragraph 13 of the Lease Summary,
for the Renewal Term commencing March 19, 2013 and terminating March 18, 2018.
2. Paragraph 14 of the Lease summary, "Minimum Rent" (section 2.2), is hereby
amended to add the following:
EXH I BIT 4
Lease between RDA and Shan
Amendment No. 1
RDA October 16,2013
RENEWAL RENT FOR RENEWAL OPTION PERIOD
MONTHLY
PAYMENT
PERIOD ANNUAL MINIMUM RENT (PLUS SALES TAX)
Option Year One
March 19, 2013- October 31, 2013 $128,106.96 $10,675.58
November 1, 2013— February 28, 2014, $179,108.00 ($66.41/psf) $14,925.65
Note (*) Beginning on March 1, 2014, and at the beginning of each succeeding year thereafter
during the Renewal Term of the Lease, the Minimum Rent shall be adjusted by the greater of
three (3%) annually or the CPI increase, as determined in accordance with the following
formula: The CPI increase shall be determined by multiplying the Minimum Rent then being
paid by a fraction, the numerator of which shall be the Consumer Price Index - U.S. City
average for urban wage earners and clerical workers all items (1982-84 equals 100) ("CPI") for
the third month-preceding the month of adjustment, and the denominator of which shall be the
CPI for the fifteenth month preceding the month of adjustment. Should the CPI become
unavailable, a reasonable substitute prepared by the U.S. Department of Labor or other source,
as designated by Landlord, shall be used. Minimum Rent shall continue to be payable in
monthly installments as otherwise described above until Landlord notifies Tenant of the new
monthly Minimum Rent installment amount. Landlord shall attempt to so notify Tenant prior to
the commencement of each adjustment date. However, failure of Landlord to timely notify
Tenant of the new monthly Minimum Rent installment amount shall not be deemed a waiver by
Landlord of the increased rental; the new monthly amount (or any portion to previously paid)
shall be payable, retroactive to the commencement of the new adjustment date, upon
notification by Landlord to Tenant of the new monthly Minimum Rent installment amount.
Notwithstanding the foregoing, the annual Minimum Rent shall not be less than the Minimum
Rent payable for the immediately prior year, plus the minimum three (3%) annual increase.
The projected Minimum Rent for Option Years two through Five, assuming that the CPI
increases, as described herein, stay below 3%, shall be as follows:
Renewal Rent for Renewal Option Per!od
Monthly Rent
Option Yrs. °Sq. Ft. Rent/Sq Ft. Annual Rent lus sales tax
Year 1 1;3-19-13/10-31-13„ 2697 $ 47.50 _$ 128,107 $ 10,675.58
Year 1 -11-1-13/2-28-14 2697; $ 66.41 $ 179,108 $ 14,925.65
Year 2 3-1-2014/2-28-2015 f 2697 $ 68.40 $ 184,481 : $ 15,373.42
Year 3 =3-1-2015/2-28-2016 2697 $ 70.45 $ 190,015 : $ 15,834.62
... _. .
Year 4 #3 1 2016/2 28--2017 2697 $ 72.57 $ 195,716 i $ 16,309.66
Year 5 =3-1-2017/3-18-2018 2697 $ 74.75 $ 201,587 $ 16,798.9!
3. Except as amended herein, all other terms and conditions of the Lease shall remain
in full force and effect and are hereby ratified and confirmed by the parties.
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Lease between RDA and Shan
Amendment No. 1
RDA October 16,2013
IN WITNESS WHEREOF, this Amendment No. 1 has been duly executed by the parties
hereto as of the day and year first above written.
ATTEST: LANDLORD:
MIAMI BEACH REDEVELOPMENT
AGENCY
Print Name: Chairperson
day of , 2013.
Print Name:
Print Name: Secretary
day of , 2013.
Print Name:
ATTEST: TENANT:
1560 Collins Avenue, Inc., a Florida corporation
By:
Print Name: Title:
day of , 2013.
Print Name:
CORPORATE SEAL
(affix here)
F.IRHCDI$ALLIECOM$ALLIASSE71Anchor ReMbsolutely Suitable Shanl ftendment No. 1
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