Title
Government District Parking Deck - Marathon Health Lease
Action
ACTION:
Adopt a Resolution titled, “Mecklenburg County Board of Commissioners Resolution Declaring Intent to Lease Property to Marathon Health, LLC.
Staff Contact: Roberta Whitner, Asset & Facility Management
Presentation: No
BACKGROUND/JUSTIFICATION:
On October 5, 2015, Marathon Health, LLC (“Marathon”) and the County entered into an assignment of lease and consent agreement. Marathon currently leases +/- 3,144 square feet of retail space from the County at the Government District Parking Deck located at 901 E 4th St, Suites C & D, Charlotte, NC. Marathon submitted a proposal to enter into a new lease agreement.
The County’s Asset and Facility Management Department as well as Colliers, the real estate firm secured by the County to obtain tenants for the parking deck, agrees with the proposed major business terms. The County Manager will negotiate a lease consistent with the following business terms.
Proposed Major Business Terms:
Location - 901 E 4th St, Suites C & D, Charlotte, NC
Lease Term - Five (5) years and Two (2) months
Base Rent - $24.38/SF
Services - Tenant is responsible for the payment of utilities and janitorial
Rent Abatement - Tenant to receive the first two (2) months of Base Rent abatement
Annual Increases - 2% Annually
Year 1: $24.38/SF ($6,387.56/month) = $76,650.72
Year 2: $24.87/SF ($6,515.94/month) = $78,191.28
Year 3: $25.36/SF ($6,644.32/month) = $79,731.84
Year 4: $25.87/SF ($6,777.94/month) = $81,335.28
Year 5: $26.39/SF ($6,914.18/month) = $82,970.16
Renewal Option - Tenant shall have one (1) four (4) years and ten (10) months option to renew.
Commission - County shall pay a total of 6% commission on the guaranteed base rent for years 1-5 to County’s broker, Colliers, and the tenant’s broker Curtis Checkerneo. The total commission is $23,932.76 and shall be divided equally between the two brokers.
PROCUREMENT BACKGROUND:
N/A
POLICY IMPACT:
N/A
FISCAL IMPACT:
N/A