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.

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).

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.