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HomeMy WebLinkAboutExhibitBAJNIKelt 0 FREEMAN PROPERTY GROUP LEASE PROPOSAL May 4, 2018 Adam Freeman: adam@freemanpropertygroup.com RE: 14 NE 1 AVE, SUIT 200, MIAMI, FL 33132 This letter of interest shall outline the general teiiiis and conditions pursuant to which the City of Miami ("Tenant" and/or "City")), would be interested in entering into a Lease Agreement with One Flagler, LLC ("Landlord") at the Property referenced below. This Letter of interest is non -binding and preliminary in nature and reflects only the major points to be included in the Lease Agreement. Upon mutual execution of this proposal, Landlord will draft the Lease Agreement for Tenant's review: 1. THE PROPERTY: 14 NE 1 Ave Suite 200, Miami, FL 33132; Encompassing the entire second floor of the One Flagler Building. 2. RENTABLE SQUARE FEET: 11,390 RSF 3. INTENDED USE: Main office for the City of Miami Department of Community & Economic Development. 4. LANDLORD IMPROVEMENTS: Landlord, at Landlord's sole cost and expense, shall deliver the Property in good, clean, working condition with the improvements listed below, along with any additional improvements listed in Exhibit A: a. Install new carpet in all offices b. Install new kitchen appliances and countertop c. Install entrance door and window as indicated in sketch d. Install new reception desk stem wall with countertop e. Install new bathroom fixtures and door hardware in ADA bathroom f. Clean, buff, repair and polish existing concrete flooring in common areas g. Replace paneling on entrance wall outside elevators with material of Tenant's choice. 5. LEASE TERM: Five (5) years; plus two Three (3) -Year Options 6. LEASE COMMENCEMENT DATE: Upon mutual execution and City Commission Approval of the Lease Agreement. 7. DELIVERY DATE: Upon completion of Landlord Improvements. Estimated to be 30- 1 75 days from Lease Commencement Date. Landlord will provide Tenant with 10 days advanced written notice of the Delivery Date. 8. RENT COMMENCEMENT DATE: The 1" day of the month following Delivery Date. 9. LEASE TYPE:. Modified Gross; Tenant is responsible for Base Rent plus electric, in - suite janitorial, and parking. 10. BASE RENT: If Landlord adds a dropped ceiling as part of Landlord Improvements, base rent will be $23.50 per SF in the first year. If no dropped ceiling is required, base rent will be $22.50 per SF in the first year. The detailed Rent Schedule and annual increases for both options are reflected in Exhibit "B" below. Tenant will provide a certificate of sales tax exemption. 11. ELECTRIC EXPENSE: Estimated at S2 per SF. 12. PARKING OPTIONS: Tenant will be responsible for its own parking. Broker will assist Tenant in securing parking with any privately -owned lots if necessary. 13. ANNUAL INCREASES: Base Rent will increase by 2.5% per year in the Initial Tern. Annual increases in the renewal periods are detailed in both rent schedule options listed in Exhibit "B". 14. SECURITY DEPOSIT: One month's rent due within thirty (30) days following city commission approval and lease execution. 15. ADVANCED RENT: First and Last mnonth's rent, 16. RENEWAL OPTION: Tenant shall have two (2) options to renew the Lease for an additional three (3) years each at the rent increased detailed in Exhibit "B" 17. BROKERAGE: The parties agree to recognize Coldwell Banker as the only broker in this transaction and commissions shall be paid solely by Landlord in accordance with Coldwell Banker's existing listing agreement. 18. DISCLAIMER: It is to be strictly understood and agreed to by all parties involved that all the terns and conditions of this Proposal are only an outline of major contemplated Lease provisions and that these terms and conditions do not constitute a legally binding agreement between the parties to enter into a new Lease. Neither the Tenant nor the Landlord shall have any contractual obligation or liability until a Lease and all related documents have been fully executed and properly exchanged by/between all parties. In the event a Lease document cannot be agreed upon and/or executed by al! parties, or the parties do not approve the transaction hereto, regardless of the reason, then neither party shall have any liability hereunder nor shall have any obligation to continue discussion or negotiations for such Lease, notwithstanding that either or both parties may expand substantial efforts and ruins in anticipation of entering into a Lease document. ;SIGNATURES ON THE FOLLOWING PAGE; 2 Agreed and approved, CITY OF MIAMI DEPT. OF CONIMUNJTY AND ECONOMIC DEVELOPMENT Signature: Name: Title: r" .b e/S-0 ` 1i i/ CS'24/‘ - 'e/ 4/4.9 c.41•// Date: 7 tor' ONE FLACLER, L Signature: 4 Name: Title: Pi' e Date: 3 EXHIBIT "A" Detailed Landlord Improvements • Entrance door to be electronically controlled by receptionist. • Modernized Bathrooms (3) • Drop ceiling to be completed after move in, • Remove walls between 2 offices and add a door in one of the office partitions as shown in the sketch • Paint all offices bone or off white and the column an accent color to be determine by the department, The ceiling should also be painted. • The Department will choose the color of the carpet to be installed • Install blinds in all offices with windows including full wall interior windows 4 EXHIBIT "B" Rent Schedule Options OPTION A: LANDLORD INSTALLS DROPPED CEILING INCREASE FROM TERM YEAR BASE RENT PREVIOUS YEAR INITIAL 1 $ 23.50 - 2 $ 24.09 2.5% 3 $ 24.69 2.5% 4 $ 25.31 2.5% 5 $ 25.94 2.5% 1ST RENEWAL 6 $ 26.59 2.5% 7 $ 27.25 2.5% 8 $ 27.93 2.5% 2ND RENEWAL 9 $ 29.63 2.5% + $1 in Base Rent 10 $ 30.37 2.5% 11 $ 31.13 2.5% OPTION B: NO DROPPED CEILING REQUIRED INCREASE FROM TERM YEAR BASE RENT PREVIOUS YEAR INITIAL 1 $ 22.50 2 $ 23.06 2.5% 3 $ 23.64 2.5% 4 $ 24.23 2.5% 5 $ 24.84 2.5% 1ST RENEWAL 6 $ 26.46 2.5% + $1 in Base Rent 7 S 27.12 2.5% 8 $ 27.80 2.5% 2ND RENEWAL 9 $ 29.49 2.5%+ $1 in Base Rent 10 $ 30.23 2.5% 11 $ 30,98 2,5% 5