The Miami Beach Redevelopment Agency 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 years and expired in 2018.  Pursuant to a professional services agreement with the City, CBRE, Inc. provides real estate brokerage services for the Anchor Shops retail component and serves as the listing agent for the property.  CBRE has identified Marie Blachere, LLC as a prospective tenant for the premises.

Marie Blachere, LLC is a subsidiary of Blachere USA Corp. which is the United States subsidiary of Holding Bernard Blachere (Marie Blachere) which was founded in France in 2004.  Marie Blachere is an authentic French bakery, pastry and sandwich market offering artisanal breads, croissants, pastries, sweets and baguette sandwiches, as well as salads, pizzas, muffins and more.  A sample menu and photos are attached as Exh ibit A.  Marie Blachere currently operates approximately 500 locations in France and is one of the largest bakeries throughout France.  Blachere USA Corp currently operates two locations in Long Island and Manhattan, New York.  Blachere USA Corp’s consolidate financial statements and a summary of Holding Bernard Blachere’s financial statements are attached as Exhibit B.

Subsequent to negotiations, tenant executed a letter of intent, containing the basic terms and conditions outlined below.

Landlord:  Miami Beach Redevelopment Agency (RDA)

Tenant:  Marie Blachere, LLC

Premises:  1560 Collins Avenue, Suite 2, Miami Beach, Florida 33139

 Size:  Approximately 2,697 rentable square feet

Term:  Nine years

Renewal Options:  None 

Lease Commencement:  The lease commencement date will be the earlier of 1) one hundred and eighty days following possession or 2) the date any portion of the premises opens for business.

Rent Commencement:  The rent commencement date will be one hundred and eighty days following the lease commencement date.

Base Rental Rate:  $75.00 per rentable square foot, plus applicable sales tax

Annual Rent Increases:  The base rental rate shall be increased by three percent annually.

Lease Basis:  Triple Net – In addition to the base rental rate, tenant shall pay its proportionate share of the costs of real estate taxes, insurance, and maintenance expenses (currently estimated at $10.00 PSF).

Prepaid Rent:  First month’s rent, including sales tax, in the amount of $20,383.70.

Security Deposit:  Six month’s rent, including sales tax, in the amount of $122,302.20.  If tenant has not been in default of the lease and is current on all rental payments after year two of opening for business, then landlord shall reimburse three month’s rent to tenant.  Landlord shall retain a total of three month’s rent, in the amount of $61,151.10, for the remaining lease term.

Guarantor:  Corporate guaranties from Blachere USA Corp. and Holding Bernard Blachere.

Financial Statements:  This proposal is subject to landlord's review and approval of tenant’s financial statements.

Utilities:  Tenant shall be responsible for the cost of its utilities and trash removal

Construction Allowance:  Tenant shall accept the premises in “as-is” condition and shall perform any necessary work at its sole cost and expense.

Signage:  Tenant shall have the ability to install exterior signage above its space, subject to the approval of landlord in its proprietary and regulatory capacities.

Use:  Marie Blachere Café and Bakery

Agency Disclosure:  CBRE, Inc. represents the landlord in this transaction and New Wave Realty represents the tenant.  CBRE shall be paid a commission by the landlord, in accordance with a separate professional services agreement, in the event a lease is mutually executed and delivered.

Conditions:  The terms and conditions of the letter of intent are subject to approval by the Miami Beach Redevelopment Agency.  The letter of intent is non-binding upon either party, and may be modified or withdrawn by the landlord, without notice, at any time.  Only a fully executed and delivered lease agreement, which shall be negotiated in good faith by both parties, shall serve as a binding agreement in this regard.

Under the previous lease for this space, the tenant was paying a total rental rate of $74.75 per square foot, including operating expenses, during the final lease year.  The lease was subject to three percent annual increases during its 60 month term.  The proposed lease provides for a base rental rate of $75.00 per square foot, plus estimated operating expenses of $10.00 per square foot.  The base rent will be increased by three percent annually.  The proposed rent structure over the nine year term is contained in the chart below.

Additionally, tenant anticipates investing approximately $178,000 in renovations to the space and approximately $250,000 in furniture, fixtures and equipment.  Conceptual renderings and an initial floor plan are attached as Exhibit C.

For comparison purposes, a current rent detail for the existing six retail/restaurant tenants at the Anchor Shops is contained in the chart below.

Leasing Brokerage Commission

CBRE shall be paid a leasing commission pursuant to the Professional Services Agreement dated October 24, 2017 between the City and CBRE, Inc. for real estate brokerage services, as authorized by City Commission Resolution No. 20417-29988.  Per the professional services agreement, the City will be obligated to pay a leasing commission equal to six percent of the gross aggregate base rent over the initial five years of the lease, as contained in the chart below.  The leasing commission will be split evenly between CBRE and the tenant’s broker, New Wave Realty. 

This project aligns with the 2019 strategic plan prosperity vision area to revitalize targeted areas and increase investment.  The administration recommends approving the lease agreement with Marie Blachere, LLC due to: 1) competitive rental rate and favorable lease terms, 2) tenant’s acceptance of the premises in “as-is” condition and 3) tenant’s significant investment into the space.