HomeMy WebLinkAbout25D - AGMT - COMMERCIAL LEASING SRVSREQUEST FOR
COUNCIL ACTION
CITY COUNCIL MEETING DATE:
AUGUST 6, 2012
TITLE:
AGREEMENT FOR COMMERCIAL REAL
ESTATE LEASING SERVICES
CITY MANAGER
RECOMMENDED ACTION
CLERK OF COUNCIL USE ONLY:
APPROVED
❑ As Recommended
❑ As Amended
❑ Ordinance on 1St Reading
❑ Ordinance on 2nd Reading
❑ Implementing Resolution
❑ Set Public Hearing For_
CONTINUED TO
FILE NUMBER
Authorize the City Manager and the Clerk of the Council to execute the attached agreement with
CIBA Real Estate for leasing services at the Santa Ana Regional Transportation Center, in a total
amount not to exceed $60,000 with an additional 15% contingency, subject to nonsubstantive
changes approved by the City Manager and City Attorney.
DISCUSSION
The Santa Ana Regional Transportation Center (SARTC) is the focal point of transportation in
Orange County, with an overall estimated weekday count of 2,995 visitors a day. The SARTC
building contains approximately 35,000 square feet of rental space. Currently, there is one vacant
5,200- square -foot suite located on the first floor of the SARTC.
The suite was previously occupied by the City's WORK Center for a grant program that expired at
the end of June 2011. Given the conditions of the commercial real estate market, staff has not
been able to acquire a new tenant despite multiple efforts. Therefore, staff recommends retaining
professional commercial real estate leasing services for the vacant space with an added
contingency for additional services should other rental spaces within the facility become available
during the term of the agreement.
Request for Proposals (RFPs) were sent to 20 local and regional commercial real estate firms.
Two proposals were received and evaluated based on the criteria set forth in the RFP as follows:
CRITERIA
CIBA Real Estate
CB Richard Ellis
Responsiveness to RFP
26.7
25.0
Experience of Firm and Personnel
25.0
24.3
Compensation
37.0
29.3
TOTAL
88.7
78.6
25D -1
Agreement for Commercial Real
Estate Leasing Services
August 6, 2012
Page 2
Staff selected CIBA Real Estate based on the thoroughness of its proposal, professional expertise,
and knowledge of the Southern California market, experience working with local government
agencies, and competitive compensation structure. Under the proposed agreement, CIBA will
develop a broad marketing strategy to generate maximum exposure and attract strong prospective
tenants; conduct an extensive market analysis to attain accurate pricing and position for the space;
and assist with negotiating lease terms.
FISCAL IMPACT
CIBA will be compensated a commission equal to five percent of the total lease consideration. The
commission -based compensation structure of the proposed agreement stipulates that CIBA will
only be compensated should the firm successfully place a tenant. Funds are available in the
SARTC program account for professional contract services (accounting unit 06717650- 62300).
Ra Godinez II
Executive Director
Public Works Agency
RG /AF
Exhibits: 1. Agreement
2. CIBA Marketing and Listing Proposal
APPROVED AS TO FUNDS AND ACCOUNTS:
Francisco Gutierrez
Executive Director
Finance & Management Services Agency
25D -2
AGREEMENT FOR PROVISION OF REAL ESTATE SERVICES
THIS AGREEMENT, made and entered into this 6`'' day of August, 2012 by and between
CIBA Real Estate, a general partnership (hereinafter "Broker "), and the City of Santa Ana, a
charter city and municipal corporation organized and existing under the Constitution and laws of
the State of California (hereinafter "City ").
RECITALS
A. The City desires to retain a consultant having special skill and knowledge in the field of
real estate brokerage to provide listing and marketing services for lease space at the
Santa Ana Regional Transportation Center.
B. Broker represents that Broker is able and willing to provide such services to the City.
C. In undertaking the performance of this Agreement, Broker represents that it is
knowledgeable in its field and that any services performed by Broker under this
Agreement will be performed in compliance with such standards as may reasonably be
expected from a professional consulting firm in the field.
NOW THEREFORE, in consideration of the mutual and respective promises, and subject to the
terms and conditions hereinafter set forth, the parties agree as follows:
1. SCOPE OF SERVICES
Broker shall provide real estate listing and marketing services necessary to lease Suite
100, at the Santa Ana Regional Transportation Center ( "SARTC "), 1000 E. Santa Ana Blvd.,
Santa Ana, California. The space is comprised of 5,200 square feet on the ground floor of the
building (the "Premises "). Broker shall market the Premises to obtain a lease term of up to five
years. In providing such services, Broker acknowledges that the proposed lease space is located
in a public building and that City has absolute discretion to accept or reject any proposed lessee
brought by Broker. Further, any lease resulting from the services provided by Broker shall be in
a form approved by City. If additional tenant space becomes available at SARTC during the
term of this Agreement, the City may request Broker's services in writing, to obtain a satisfactory
tenant for such space.
2. REPRESENTATIVES
For purposes of implementing this Agreement, the representative of City shall be the
Executive Director of the Public Works Agency, or his designated representative, and the
representative of the Broker shall be the President or his/her designated representative. Except as
may be otherwise stated herein, such representatives shall have the authority to act on behalf of
their respective parties in carrying out the terms of this Agreement.
3. COMPENSATION
a. City agrees to pay, and Broker agrees to accept as total payment for its services, a
commission equal to five percent (5 %) of total lease consideration. The total sum to be expended
for broker services related to the lease of Suite 100 shall not exceed $60,000.00 during the term
Exhibit 1
25D -3
of this Agreement. A fifteen percent contingency is available should the City request broker
services to lease additional space at the SARTC. The total sum to be expended pursuant to this
Agreement shall not exceed $69,000.
b. Fifty percent (50 %) of the commission payment shall be made within thirty (30) days
following execution of a lease for the Premises.
c. The remaining fifty percent (50 %) of total payment by City shall be made in twenty -
four (24) equal monthly payments, paid on or before the 15t` day of the month. Said payment
shall commence the month following the initial commission payment set forth in paragraph 3.b.,
above. However, if the Tenant does not complete the lease term for any reason, Broker shall
market the unexpired term free of charge.
d. Monthly payment by City shall be made within thirty (30) days following receipt of
lease payment.
4. TERM
This Agreement shall commence on the date first written above and the Broker
authorization shall terminate on June 30, 2013, unless terminated sooner pursuant to Section 13,
below. Notwithstanding the foregoing, the parties agree that the term of this Agreement will
remain open solely for the purpose of paying compensation over the twenty -four month period set
forth in Section 3.c., above. The term of this Agreement may be extended by a writing executed
by the Executive Director of Public Works, City Attorney and Broker.
5. INDEPENDENT CONTRACTOR
Broker shall, during the entire term of this Agreement, be construed to be an independent
contractor and not an employee of the City. This Agreement is not intended nor shall it be
construed to create an employer - employee relationship, a joint venture relationship, or to allow
the City to exercise discretion or control over the professional manner in which Broker performs
the services which are the subject matter of this Agreement; however, the services to be provided
by Broker shall be provided in a manner consistent with all applicable standards and regulations
governing such services. Broker shall pay all salaries and wages, employer's social security taxes,
unemployment insurance and similar taxes relating to employees and shall be responsible for all
applicable withholding taxes.
6. INSURANCE
Prior to undertaking performance of work under this Agreement, Broker shall maintain
and shall require its subcontractors, if any, to obtain and maintain insurance as described below:
a. Worker's Compensation Insurance. In accordance with the provisions of Section 3300
of the Labor Code, Broker, if Broker has any employees, is required to be insured against liability
for worker's compensation or to undertake self - insurance. Prior to commencing the performance
of the work under this Agreement, Broker agrees to obtain and maintain any employer's liability
insurance with limits not less than $1,000,000 per accident.
b. Professional liability (errors and omissions) insurance, with a combined single limit
of not less than $1,000,000 per claim, and $2,000,000 in the aggregate.
25D -4
c. The following requirements apply to the insurance to be provided by Broker pursuant
to this section:
(i) Broker shall maintain all insurance required above in full force and effect
for the entire period covered by this Agreement.
(ii) Certificates of insurance shall be furnished to the City upon execution of
this Agreement and shall be approved in form by the City Attorney.
(iii) Certificates and policies shall state that the policies shall not be canceled
or reduced in coverage or changed in any other material aspect without
thirty (30) days prior written notice to the City.
7. INDEMNIFICATION
Broker agrees to and shall indemnify and hold harmless the City, its officers, agents,
employees, consultants, special counsel, and representatives from liability for: (1) personal injury,
damages, just compensation, restitution, judicial or equitable relief arising out of claims for
personal injury, including death, and claims for property damage, which may arise from the
negligence, recklessness or willful misconduct of the Broker or its contractors, subcontractors,
agents, employees, or other persons acting on their behalf which relates to the services described
in section 1 of this Agreement; and (2) from any claim that personal injury, damages, just
compensation, restitution, judicial or equitable relief is due by reason of the negligence,
recklessness or willful misconduct of Broker arising from this Agreement. The Broker further
agrees to indemnify, hold harmless, and pay all costs for the defense of the City, including fees
and costs for special counsel to be selected by the City, regarding any action by a third party
asserting that personal injury, damages, just compensation, restitution, judicial or equitable relief
due to personal or property rights arises by reason of the terms of, or effects arising from this
Agreement. City may make all reasonable decisions with respect to its representation in any legal
proceeding.
8. CONFIDENTIALITY
If Broker receives from the City information which due to the nature of such information
is reasonably understood to be confidential and /or proprietary, Broker agrees that it shall not use
or disclose such information except in the performance of this Agreement, and further agrees to
exercise the same degree of care it uses to protect its own information of like importance, but in
no event less than reasonable care. "Confidential Information" shall include all nonpublic
information. Confidential information includes not only written information, but also information
transferred orally, visually, electronically, or by other means. Confidential information disclosed
to either party by any subsidiary and/or agent of the other party is covered by this Agreement.
The foregoing obligations of non -use and nondisclosure shall not apply to any information that
(a) has been disclosed in publicly available sources; (b) is, through no fault of the Broker
disclosed in a publicly available source; (c) is in rightful possession of the Broker without an
obligation of confidentiality; (d) is required to be disclosed by operation of law; or (e) is
independently developed by the Broker without reference to information disclosed by the City.
9. CONFLICT OF INTEREST CLAUSE
Broker covenants that it presently has no interests and shall not have interests, direct or
indirect, which would conflict in any manner with performance of services specified under this
Agreement.
25D -5
10. NOTICE
Any notice, tender, demand, delivery, or other communication pursuant to this
Agreement shall be in writing and shall be deemed to be properly given if delivered in person or
mailed by first class or certified mail, postage prepaid, or sent by facsimile or other telegraphic
communication in the manner provided in this Section, to the following persons:
To City: Clerk of the City Council
City of Santa Ana
20 Civic Center Plaza (M -30)
P.O. Box 1988
Santa Ana, CA 92702 -1988
facsimile (714) 647 -6956
With courtesy copies to:
Executive Director of the Public Works Agency
City of Santa Ana
20 Civic Center Plaza (M -21)
P.O. Box 1988
Santa Ana, California 92702
facsimile (714) 647 -5609
and City Attorney
City of Santa Ana
20 Civic Center Plaza (M -29)
P.O. Box 1988
Santa Ana, California 92702
facsimile (714) 647 -6515
To Broker: CIBA Real Estate
233 W. Chestnut Avenue
Monrovia, CA 91016
Facsimile (626) 308 -1758
A party may change its address by giving notice in writing to the other party. Thereafter,
any communication shall be addressed and transmitted to the new address. If sent by mail,
communication shall be effective or deemed to have been given three (3) days after it has been
deposited in the United States mail, duly registered or certified, with postage prepaid, and
addressed as set forth above. If sent by facsimile, communication shall be effective or deemed to
have been given twenty -four (24) hours after the time set forth on the transmission report issued
by the transmitting facsimile machine, addressed as set forth above. For purposes of calculating
these time frames, weekends, federal, state, County or City holidays shall be excluded.
11. EXCLUSIVITY AND AMENDMENT
This Agreement represents the complete and exclusive statement between the City and
Broker, and supersedes any and all other agreements, oral or written, between the parties. In the
event of a conflict between the terms of this Agreement and any attachments hereto, the terms of
this Agreement shall prevail. This Agreement may not be modified except by written instrument
signed by the City and by an authorized representative of Broker. The parties agree that any
terms or conditions of any purchase order or other instrument that are inconsistent with, or in
addition to, the terms and conditions hereof, shall not bind or obligate Broker nor the City. Each
party to this Agreement acknowledges that no representations, inducements, promises or
agreements, orally or otherwise, have been made by any party, or anyone acting on behalf of any
party, which are not embodied herein.
12. ASSIGNMENT
Inasmuch as this Agreement is intended to secure the specialized services of Broker,
Broker may not assign, transfer, delegate, or subcontract any interest herein without the prior
written consent of the City and any such assignment, transfer, delegation or subcontract without
the City's prior written consent shall be considered null and void. Nothing in this Agreement shall
be construed to limit the City's ability to have any of the services which are the subject to this
Agreement performed by City personnel or by other consultants retained by City.
13. TERMINATION
This Agreement may be terminated by the City upon thirty (30) days written notice of
termination. In such event, Broker shall be entitled to compensation in accordance with Section 3.a.,
above in the following instances:
(a) The Premises are leased to Tenant(s) by or through Broker prior to the date of
termination; or
(b) Within three hundred sixty (360) days after the termination, the Premises is leased to
any person or entity with whom Broker has negotiated or to whom Broker has
submitted the Premises prior to such expiration in an effort to effect a transaction
(efforts to effect a transaction shall include but not be limited to individuals or
companies which have been contacted directly, through mailings, phone solicitation,
email or other means and which can be identified by individual or company name)
and whose name appears on any list of such persons or entities which Broker shall
have mailed to City at the address stated in Section 10, above, within thirty (30) days
following such termination, provided that if Broker has submitted a written offer to
purchase or lease, it shall not be necessary to include the offeror's name on the list.
14. DISCRIMINATION
Broker shall not discriminate because of race, color, creed, religion, sex, marital status,
sexual orientation, age, national origin, ancestry, or disability, as defined and prohibited by
applicable law, in the recruitment, selection, training, utilization, promotion, termination or other
employment related activities. Broker affirms that it is an equal opportunity employer and shall
comply with all applicable federal, state and local laws and regulations.
15. JURISDICTION - VENUE
This Agreement and all questions relating to its validity, interpretation, performance, and
enforcement shall be government and construed in accordance with the laws of the State of
California. This Agreement has been executed and delivered in the State of California and the
validity, interpretation, performance, and enforcement of any of the clauses of this Agreement
shall be determined and governed by the laws of the State of California. Both parties further
25D -7
agree that Orange County, California, shall be the venue for any action or proceeding that may be
brought or arise out of, in connection with or by reason of this Agreement.
16. PROFESSIONAL LICENSES
Broker shall, throughout the term of this Agreement, maintain all necessary licenses,
permits, approvals, waivers, and exemptions necessary for the provision of the services hereunder
and required by the laws and regulations of the United States, the State of California, the City of
Santa Ana and all other governmental agencies. Broker shall notify the City immediately and in
writing of her inability to obtain or maintain such permits, licenses, approvals, waivers, and
exemptions. Said inability shall be cause for termination of this Agreement.
17. MISCELLANEOUS PROVISIONS
a. Each undersigned represents and warrants that its signature hereinbelow has the power,
authority and right to bind their respective parties to each of the terms of this Agreement, and shall
indemnify City fully, including reasonable costs and attorney's fees, for any injuries or damages to
City in the event that such authority or power is not, in fact, held by the signatory or is withdrawn.
b. Captions and headings in this Agreement, including the title of this Agreement, are for
convenience only and are not to be considered in construing this Agreement.
c. All Exhibits referenced herein and attached hereto shall be incorporated as if fully set
forth in the body of this Agreement.
IN WITNESS WHEREOF, the parties hereto have executed this Agreement the date and year
first above written.
ATTEST: CITY OF SANTA ANA
MARIA D. HUIZAR PAUL M. WALTERS
Clerk of the Council City Manager
APPROVED AS TO FORM:
SONIA R. CARVALHO
City Attorney
By:
Laura Sheedy
Assistant City Attorney
RECOMMENDED FOR APPROVAL:
RAUL GODINEZ, II
Executive Director
Public Works Agency
CIBA REAL ESTATE
FILIPPO FANARA
Principal
W11,
City of Santa Ana Public Works Agency
Santa Aria Regional Transportation Center
Retailer Outreach and Leasing Services
w
August 10, 2011
Mr. Raul Godinez
Executive Director
Public Works Agency
City of Santa Ana
20 Civic Center Plaza. M -21
Santa Ana. CA 92701
Dear Mr. Godinez:
Pursuant to the Request for Proposals far Real Estate Services, CIBA Real Estate has prepared
the following proposal regarding our retailer outreach and leasing strategy for the 5,200 square
foot space at the Santa Ana Regional Transportation Center. The CIBA team is active in
commercial and retail real estate transactions and we would appreciate the opportunity to market
the property to the myriad of retailers we are in contact with daily.
We feel that the space could be well -used by a quick serve restaurant or a full service operation.
We do work with restaurateurs that cater to similar neighborhoods with a high quality build out
and business platform. In addition. we have consummated deals with national and regional
retailers and quick serve restaurants as well.
We appreciate your consideration and please feel free to contact me at 626-303 -1818 if you have
any questions.
Sincerely.
Ryan E. Garcia
Managing Director
C I _B_X_
Real Estate
25D -10
Company Overview
CIBA is a full- service commercial brokerage firm focused on the Southern California market.
Our scope is local but our abilities have allowed us to operate internationally. CIBA was founded
in 2004 as a boutique real estate firm with the goal of better
serving our clients in a more personal fashion than any C
brokerage firm in the area. Sharing the vision of property
owners by managing. owning and developing our own
properties. CIBA understands the nuances and obstacles that
property owners face in the marketplace. Our agents have
close and long - standing ties to the local communities and are
very involved with community development and service
projects. These include International Council of Shopping
Centers, Urban Land Institute. Association of Commercial Real Estate Executives. multiple
Chambers of Commerce, Kiwanis Club, Ivy League Alumni Network and others.
CIBA is the number one choice for real estate services. We strive to provide our clients with up-
to -date information regarding their real estate assets and the events in their community. By
collaborating with our clients. we enable them to maximize their property's value. Property value
is your concern. Adding value is our goal.
CIBA developed from the mission to provide better assistance to clients seeking real estate
advice and services. By partnering with our clients, we are able to understand their goals and real
estate needs. This approach has enabled us to create long - lasting relationships with our clients.
We are a real estate brokerage based on family values and treat each of our clients the way we
expect to be treated by our service providers — with the utmost respect. in an efficient manner
and with unified ideals and goals. CiBA can be your best real estate partner. We provide the
highest service available and continue to exceed our clients' expectations.
With a combined real estate experience in excess of 40 years, the CIBA
brokerage team can assist you with any real estate transaction. We have
been put to the test and found the solution time and time again. As
commercial and residential property owners, we understand "both sides
of the table" as a buyer and a seller. We can empathize with your
obstacles and difficulties and strive to attain the same positive results we
would expect in our own ventures. We Are Your Partners in Business.
CIBA has grossed over half a million dollars in commissions per year even during this tough
recession. CIBA's financial position is strong and continues to improve with the uptick in the
economy.
CIBA-
Real Estate
25D -11
Team Biographical Information
Ryan E. Garcia, Managing Director
Ryan E. Garcia has extensive real estate acquisition and
disposition experience throughout the U.S.. in particular in the
commercial market. His experience has included providing
dispositions and development services to large corporate entities
such as General Motors. Wal -Mart and Motorola. Mr. Garcia
has designed, developed and implemented various real estate
disposition strategies for various southern California clients.
Education
USC Marshall School of
Business
Masters of Business
Administration (2014)
Ryan E. Garcia began his real estate career in 2001 with Jones
Lang LaSalle in their Chicago -based international headquarters
working with The Property Watch team. a group dedicated to
representing public and private institutions on the disposition of
corporate surplus along with net- leased assets. He continued his
real estate career with the Charles Dunn Company in their West
Los Angeles office working on the acquisition and disposition of
retail and investment properties.
In 2007 CIBA Property Management was created to facilitate
the needs of our commercial and industrial clients. CIBA
manages properties throughout Southern California.
Dartmouth College Ryan currently focuses on the acquisition and disposition of
Bachelor of Arts commercial properties along with leasing activities in the
Southern California market.
Professional Affiliations SELECTED ACCOMPLISHMENTS
Marketed and sold over $100 million in commercial and
• Licensed Real Estate residential real estate properties.
Broker in states Managed and leased over 500.000 sq. ft. of properties
California and Illinois throughout Greater Los Angeles.
Marketed and negotiated multiple redevelopment sites
• Urban Land Institute for the Compton Community Redevelopment Agency
Coordinated the sale of Capital One's Richmond,
• International Council of Virginia 450.000 sq. ft. former headquarters and Capital
Shopping Centers One's Federal Way. Washington 102.000 sq. ft. call
center.
• Kiwanis International Completed lease transactions with Rite Aid. Dominos
Pizza, Little Caesars, U.S. Postal Service and others
• Athlete's Touch
CIBX
Real Estate
25D -12
Stacie Nyborg, Senior Associate
Education
USC Gould School of Law
Juris Doctor
Yale University
Bachelor of Arts
Professional Affiliations
* Urban Land Institute
* International Council of
Shopping Centers
* California Bar
Association
* Los Angeles County Bar
Association
* Latina Lawyers Bar
Association
* American Bar
Association
Stacie is a licensed attorney and a lifelong resident of Southern
California. She has extensive knowledge of the legal and
practical issues facing local businesses and individuals in the
area and the surrounding environs of Southern California.
Because of her legal background. Stacie can help clients to
better understand the purchase and lease process and also help
identify and resolve problems from the outset. Stacie strives to
provide her clients with the best service possible and looks
forward to helping you with your future real estate transactions.
Stacie currently focuses on the acquisition and disposition of
commercial properties along with leasing activities in the
Southern California market.
SELECTED ACCOMPLISHMENTS
Advise on redevelopment projects for the Compton
Community Redevelopment Agency
Chapter 7 Trustee of Axium International in
investigating and negotiating potential litigation claims
against its secured lenders
East West Bank in foreclosure and bankruptcy
proceedings
C I —R-A--
Real Estate
25D -13
Valuable Experience
The team at CIBA has been involved with all aspects of commercial real estate from leasing,
sales, property management and development. Appendix A & B are the current leasing and sales
listings that we are working on for our clients.
In addition, we have worked with the following clients in their property leasing, acquisitions and
dispositions:
Compton Redevelopment Agency
The CIBA Team has assisted the Compton Redevelopment Agency with a variety of marketing,
acquisition and disposition assignments in the City. CIBA has been marketing over a dozen
redevelopment sites for the Agency and is currently negotiating the development of several of
those sites. The CIBA Team has been instrumental in assisting the Agency to create a marketing
campaign for ICSC and the Agency.
Contact: Michael Antwine. Deputy Director of Redevelopment
(310) 605 -5511
Monrovia Redevelopment Agency
The CIBA Team assisted the City of Monrovia in the tenanting of an approximately 6.200 square
foot City -owned building. By reaching out to the database of local and regional restaurateurs
that the CIBA team has relationships with. the City was able to sell the building to T- Phillips and
create a key cornerstone to the Old Town area. In addition, the CIBA Team is currently
marketing a redevelopment property on the Myrtle Avenue corridor which will be worked on
hand -in -hand with the Monrovia Redevelopment Agency.
Contact: Scott Ochoa. City Manager
(626) 932 -5585
Rite Aid
The CIBA Team has been enlisted by Rite Aid Pharmacy as the exclusive representative in the
San Gabriel Valley market to assist with the assessment, analysis and negotiation of relocation
sites.
Tracy Verastegui
CA Real Estate Director
(626) 858 -9227
ORA-
Real Estate
25D -14
Baja Ranch Markets and Maxi Foods
The CIBA Team has worked extensively with the ownership of Baja Ranch Markets and Maxi
Foods in the leasing of their shopping centers and analysis of additional sites for market
locations. The CIBA Team is currently working with Maxi Foods on the negotiation of its first
South Los Angeles location.
Aner Iglesias
CEO & President
(626) 357 -5051
Marketing Campaign
CIBA Real Estate ( "CIBA ") appreciates the opportunity to propose our commercial real estate
services to the City of Santa Ana Public Works Agency ( "Agency') for the 5.200 square foot
space located at the Santa Ana Regional Transportation Center ( "Property "). In order to best
evaluate the Property, CIBA has analyzed the current market. researched prospective tenants.
and has prepared a recommended marketing campaign to attain the Property's maximum value.
CIBA is excited about the prospect of representing you on the leasing of the Property. Our team
of real estate professionals brings you the following benefits:
Maximum Exposure
CIBA proposes a broad marketing approach which will expose the property to the largest number
of prospective tenants. By utilizing the frill spectrum of electronic marketing tools available to
the commercial real estate industry. CIBA will make the right people aware of the Property
offering on a local, regional and national level.
CIBA not only uses the internet effectively but takes a basic "feet on the street" approach of
flooding the local market with information by personally introducing marketing materials to
businesses in the area and placing highly signage on the Property.
Accurate Pricing and Positioning
CIBA prides itself on maximizing a property's value and bringing our clients the highest rental
value. Our team spends much time and effort on evaluating the current market trends and sets
lease pricing according to the market value. Our guidance and advice comes from much research
of in -place leases. market rental rates and available properties. Our goal is to generate intense
interest in the Property - not leave the Property lingering on the market due to overpricing - and
allow for the highest lease price.
CIR&r
Real Estate
25D -15
Effective System
Our process of quickly distributing information regarding the property offering and attracting the
strongest prospects is achievable due to our daily routine of contact management. On a daily
basis, CIBA delivers marketing materials and informational letters to prospective tenants. CIBA
represents numerous commercial property owners and tenants and truly understands the process
of lease transactions.
Preliminary Property Valuation
CIBA evaluated a number of factors to determine the highest lease value of the Property,
including: intended use of the space, prospective tenants and available competing properties.
Rental rates in the retail sector have slid since the U.S. economy, as a whole, has been struggling.
Retail has been one of the sectors most affected by this downturn. Disposable income has
decreased and those with additional funds are holding onto them tighter to weather the economic
storm. Start-up businesses have decreased in the retail markets and decreased business creates a
difficult situation for retail tenants. Deals that have been consummated in this market are
ranging from approximately $1.50 - $2.50 per square foot for similar properties.
Comparable lease listings are approximately $1.50 - $2.50 per square foot for similar properties
within the surrounding area. CIBA suggests marketing the Property's available space at the
comparable rate of approximately $1.50 - $2.50 per square foot. At this pricing, the Property
should gain strong attention and it will allow some room for negotiations.
Initial Outreach
CIBA has already spoken with several operators about the opportunity of placing a location at
the Regional Transportation Center and can have Letters of Interest executed upon our
enlistment as the Agency's representative.
CIR&�
Real Estate
25D -16
Timeline and Action Items
CIBA would like to present the action items and general timeline wherein the following will be
completed during the initial months of our outreach program:
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As you can see above by the general timeline, our initial weeks will consist of compiling
property information and detailed market information for the marketing materials that will be
distributed throughout the campaign. We have already started our initial process of making a
tenant list of usual suspects and will continue to contact additional prospects through the multiple
mediums including phone calls, direct mail and blast emails. We feel confident that this multi -
pronged approach will be fruitful in attracting suitable tenants.
C IBAI'
Real Estate
25D -17
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As you can see above by the general timeline, our initial weeks will consist of compiling
property information and detailed market information for the marketing materials that will be
distributed throughout the campaign. We have already started our initial process of making a
tenant list of usual suspects and will continue to contact additional prospects through the multiple
mediums including phone calls, direct mail and blast emails. We feel confident that this multi -
pronged approach will be fruitful in attracting suitable tenants.
C IBAI'
Real Estate
25D -17
Compensation
CIBA proposes a transaction fee equal to six percent (6.0 %) of the total lease consideration. A
cooperating broker would be compensated at fifty percent (50 %) of the brokerage fee. CIBA is
cognizant of certain municipal financial restraints so the marketing campaign and compensation
structure are flexible and can be customized to meet the needs of the Agency.
Conclusion
CIBA recommends enlisting our services to represent the Property for lease. Our marketing
approach will create a competitive environment for the attainment of the Property's highest
value. CIBA has the market knowledge. experience and creativity to obtain the best results in a
timely fashion for the Agency. Our focused and aggressive approach has pleased our past and
current clients. Our team looks forward to winning this assignment and satisfying you with our
services in this exciting undertaking.
CIBA-
Real Estate
25D -18
Appendix A
CIBk
Real Estate
City of Compton Redevelopment
Marketing Site List
Retail, Mixed -Use and Residential Projects
Address
Size
408 & 412 W. Alondra Blvd
2.03 + /- Acres
13633 S. Central Ave
68.0 + /- Acres
14904 S. Central Ave
11.6 + /- Acres
413 & 415 W. Compton Blvd
0.99 + /- Acres
2008 -2024 W. Compton Blvd
2.03 + /- Acres
501 -537 E. Compton Blvd
2.02 + /- Acres
1425 E. Compton Blvd
1.70 + /- Acres
201 -315 N. Long Beach Blvd
0.86 + /- Acres
1117 S. Long Beach Blvd
1.29 + /- Acres
1113 -1125 W. Rosecrans Ave
1.99 + /- Acres
200 -302 N. Tamarind Ave
2.03 + /- Acres
Total Acreage
86.67 + /- Acres
25D -19
Appendix B
CIBA7--
Real Estate
Available Properties
INDUSTRIAL FOR
LEASE
Square Feet
Type
Price per SF
Lease Type
Location
40,903
Industrial
$0.39
Mod. Gross
4207 S. Baldwin Ave., El Monte
8,000- 10,000
Industrial
S0.60
Mod. Gross
1625 S. Magnolia Ave., Monrovia
2,900
Industrial
$0.70
Ind. Gross
11711 Clark St., Units 102 -103, Arcadia
1,800
Industrial
$0.60
Mod. Gross
2310 Central Ave.44, Duarte
1,800
Industrial
$0.60
Mod. Gross
2310 Central Ave., #12, Duarte
1,800
Industrial
$0.60
Mod. Gross
2320 Central Ave.., #7, Duarte
1,800
Industrial
$0.60
Mod. Gross
2320 Central Ave.., #8, Duarte
2,000
Industrial
S0.70
Mod. Gross
212 Kruse Ave., Monrovia
7,610
Industrial
S0.95
Mod. Gross
2702 Media Center Drive, Los Angeles
3,700
Industrial
50.75
Ind. Gross
114 E. St. Joseph St., Arcadia
14,300
Industrial
S0.75
Ind. Gross
1850 Evergreen St., Duarte
10,750
Industrial
$0.85
Ind. Gross
720 E. Huntington Dr., Monrovia
2,400 -3,100
Industrial
$0.67 -0.72
Ind. Gross
2080 -2082 Lincoln Ave., Pasadena
5,200
Industrial
$0.80
Ind. Gross
1323 S. Shamrock Ave., Monrovia
10,320
Industrial
S0.55
Ind. Gross
749 N. Coney Ave., Azusa
1,450 -2,320
Industrial
50.95
Ind. Gross
1212 S. Fifth Ave., Monrovia
RETAIL FOR
LEASE
1,220
Retail
$1.50
NNN
633 N. Azusa Ave., Azusa
OFFICE FOR
LEASE
3,800
Office
$2.50
Mod. Gross
665 W. Naomi Ave., Arcadia
450
Office
$0.90
Mod. Gross
170 W. Pomona, Monrovia
800
Office
$1.30
Mod. Gross
11728 Goldring Rd., Arcadia
6,600
Office /Flex
57.30
Mod. Gross
2676 Nina, Pasadena
1,800
Office /Flex
$1.00 -1.10
Mod. Gross
128 W. Walnut Ave., Monrovia
1,333
Office
$1.40
Mod. Gross
1230 E. Huntington Dr., #10, Duarte
1,000
Office
$1.25
Mod. Gross
120 -122 W. Pomona Ave., Monrovia
FOR SALE
Square Feet
Type
Sale Price
Location
7,087
Industrial
885,000.00
2030 Central Ave., Duarte
2,400
Industrial
S 432,000.00
2080 Lincoln Ave., Pasadena
3,100
Industrial
$ 558,000.00
2082 Lincoln Ave., Pasadena
9,067
Industrial
S1,498,800.00
611 Duggan Ave., Azusa
16,550
Industrial
S415,000.00
820 Magnolia Ave., Monrovia
4,330
Retail
5575,000.00
1621 N. Garey Ave.. Pomona
LAND FOR SALE
Acres
Sale Price
Location
43.8554
$3,999,999.00
0 N. Las Lomas Rd., Duarte
The information above has been obtained from sources believed reliable While we do not doubt its accuracy. we have not verified it and make no guarantee, warranty or
representation about it.
8110/2011
25D -20