Resolution 2018-30339RESOLUTION NO
2018 -30339
A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE
CITY OF MIAMI BEACH, FLORIDA, AUTHORIZING THE CITY
MANAGER TO ISSUE A NOTICE TO PROCEED, PURSUANT TO THE
PROFESSIONAL SERVICES AGREEMENT BETWEEN THE CITY AND
CBRE, INC., FOR REAL ESTATE BROKERAGE SERVICES,
PURSUANT TO RFQ 2016- 152 -WG, TO LIST SUITE 2 OF THE ANCHOR
SHOPS RETAIL SPACE, CONSISTING OF APPROXIMATELY 2,957
SQUARE FEET, LOCATED AT 1560 COLLINS AVENUE.
WHEREAS, the Anchor Shops and Garage is located at 1560 Collins Avenue,
Miami Beach, Florida ( "Property ") and is owned by the City of Miami Beach
Redevelopment Agency ( "RDA "); and
WHEREAS, the Property contains six (6) floors, including retail and restaurant
users on the ground floor, and serves as a municipal parking garage, consisting of 820
parking spaces, on the upper floors; and
WHEREAS, the RDA and 1560 Collins Ave, Inc. were parties to a 10 -year lease
agreement for Suite 2 of the Anchor Shops, which expired in April 2018 and left the
space vacant; and
WHEREAS, in October 2017, the City executed a Professional Services
Agreement ( "Agreement ") with CBRE, Inc., ( "CBRE ") for Real Estate Brokerage
Services, pursuant to RFQ 2016 - 152 -WG; and
WHEREAS, CBRE is a full service real estate company with international reach
and local retail expertise that is well qualified to identify a quality tenant in an
expeditious manner; and
WHEREAS, pursuant to the Agreement, the City would be obligated to pay a
commission of four percent (4%) of the Base Rent, payable if tenant is not represented
by a broker, or six percent (6 %) of the Base Rent if tenant is represented by a broker;
and
WHEREAS, the commission is paid fifty percent (50 %) upon lease execution and
fifty percent (50%) upon occupancy and rent commencement; and
WHEREAS, based upon the estimated monthly rent revenue of $18,000 -
$21,000, the City will be obligated to pay a leasing commission of approximately
$44,000 (if tenant is unrepresented) or $75,000 (if tenant is represented); and
WHEREAS, the Administration recommends that the Mayor and City
Commission authorize the City Manager to issue a Notice to Proceed, as required
pursuant to the Agreement, substantially in the form attached to the City Commission
Memorandum accompanying this Resolution.
NOW, THEREFORE, BE IT DULY RESOLVED BY THE MAYOR AND CITY
COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, that the Mayor and City
Commission hereby authorize the City Manager to issue a Notice to Proceed, pursuant
to the Professional Services Agreement between the City and CBRE, Inc., for Real
Estate Brokerage Services, pursuant to RFQ 2016- 152 -WG, to list Suite 2 of the Anchor
Shops Retail Space, consisting of approximately 2,957 square feet, located at 1560
Collins Avenue.
PASSED and ADOPTED THIS day of Jne- 2018.
ATTEST:
Rafael E. anado, City Clerk
Dan Gelber, Mayor
APPROVED AS TO
FORM & LANGUAGE
F E ECUTIO vt t
City Attorney
Date
MIAM
BEACH
Resolutions - C7 V
COMMISSION MEMORANDUM
TO: Honorable Mayor and Members of the City Commission
FROM: Jimmy L. Morales, City Manager
DATE: June 6, 2018
SUBJECT: A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF
MIAMI BEACH, FLORIDA, AUTHORIZING THE CITY MANAGER TO ISSUE A
NOTICE TO PROCEED, PURSUANT TO THE PROFESSIONAL SERVICES
AGREEMENT BETWEEN THE CITY AND CBRE, INC., FOR REAL ESTATE
BROKERAGE SERVICES, PURSUANT TO RFQ 2016- 152 -WG, TO LIST SUITE 2
OF THE ANCHOR SHOPS RETAIL SPACE, CONSISTING OF APPROXIMATELY
2,957 SQUARE FEET, LOCATED AT 1560 COLLINS AVENUE.
RECOMMENDATION
Adopt the Resolution.
BACKGROUND
The Anchor Shops and Garage, located at 1560 Collins Avenue, Miami Beach, Florida ( "Property "),
is owned by the City of Miami Beach Redevelopment Agency ( "RDA "). The Property contains six (6)
floors, including ground floor retail and restaurant uses, and serves as a municipal parking garage,
consisting of 820 parking spaces, on the upper floors.
The RDA and 1560 Collins Ave, Inc. were parties to a lease agreement for 1560 Collins Avenue,
Suite 2, dated October 17, 2007. The lease was for a period of approximately ten (10) years, recently
expiring in April 2018 and leaving the space vacant. In October 2017, the City executed a
Professional Services Agreement ( "Agreement ") with CBRE, Inc. ( "CBRE "), for Real Estate
Brokerage Services, pursuant to RFQ 2016- 152 -WG.
ANALYSIS
CBRE is a full service real estate company with international reach and local retail expertise. They
are well qualified to identify a quality tenant in an expeditious manner. Upon successfully finalizing a
new lease agreement for Suite 2, pursuant to the Agreement, the City would be obligated to pay a
commission of four percent (4 %) of the Base Rent, payable if the tenant is not represented by a
broker, or six percent (6 %) of the Base Rent if the tenant is represented by a broker. The
commission is paid fifty percent (50 %) upon lease execution and fifty percent (50 %) upon occupancy
and rent commencement. Based upon the estimated monthly rent revenue of $18,000 - $21,000, the
City will be obligated to pay a leasing commission of $44,000 (if tenant is unrepresented) or $75,000
(if tenant is represented).
CONCLUSION
The Administration recommends that the Mayor and City Commission authorize the City Manager to
issue a Notice to Proceed to CBRE, attached hereto as Exhibit A.
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ATTACHMENTS:
Description
o Exhibit A^ Notice to Proceed toCBRE
o Resolution
Page 647 of 1103
City of Miami Beach, 1700 Convention Center Drive, Miami Beach, Florida 33139, www.miamibeachfl.gov
OFFICE OF THE CITY MANAGER
June 6, 2018
Shay Pope
Senior Vice President
CBRE, Inc.
777 Brickell Avenue
Miami, FL 33131
Re:
Professional Services Agreement (PSA) between the City of Miami Beach,
Florida (City) and CBRE, Inc. (CBRE) for real estate brokerage services,
pursuant to RFQ 2016 - 152 -WG'
Subject: Notice to Proceed - Suite 2 of the Anchor Shops Retail Space, consisting of
approximately 2,957 square feet of ground floor retail space, located at
1560 Collins Avenue, Miami Beach, Florida (Property)
In accordance with Section 2.2. of the above- referenced PSA, the City hereby requests that you
commence providing real estate leasing services for the Property identified above, for a period
of 12 months, at which point the listing will terminate, and should the City wish to continue listing
the property, a new Notice to Proceed will be issued. Notwithstanding, the City shall have the
option to terminate the real estate leasing services for the Property at any time upon providing
thirty (30) days written notice,
Should you have any questions, please do not hesitate to contact Mark Milisits, Office of Real
Estate, at (305) 673 -7000 ext, 6443.
Sincerely,
Jimmy Morales
City Manager
cc: Mark Milisits, Division Director
NOTICE TO PROCEED RECEIVED AND ACKNOWLEDGED BY CBRE, INC.:
Signature:
Print Name:
Title:
Date:
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