HomeMy WebLinkAbout10 SELECTION OF A REAL ESTATE BROKER FOR MARKETING AND SOLICITATION SERVICES FOR APPROXIMATELY 61 ACDocusign Envelope ID: C1EA196D-5BA2-4ECD-9D59-E3EE3CFF8CE2
MEETING DATE
TO
FROM
Agenda Item 10
Initial
Reviewed: ra`L�
City Manager
Finance Director 9
MAY 6, 2025
ALDO E. SCHINDLER, CITY MANAGER
BRIAN MONCRIEF, DEPUTY CITY MANAGER — REAL PROPERTY
SUBJECT: SELECTION OF A REAL ESTATE BROKER FOR MARKETING AND
SOLICITATION SERVICES FOR APPROXIMATELY 61 ACRES OF
CITY -OWNED REAL PROPERTY WITHIN NEIGHBORHOOD G
(PLANNING AREAS 15-A AND 15-C) OF THE TUSTIN LEGACY
SPECIFIC PLAN
SUMMARY:
Request for selection of a real estate broker to provide marketing and solicitation services
for approximately 61 acres of City -owned real property within Neighborhood G (Planning
Areas 15-A and 15-C) of the Tustin Legacy Specific Plan.
RECOMMENDATION:
Authorize the City Manager to negotiate and execute a Listing Agreement with CBRE, Inc.,
subject to non -substantive additions or modifications as may be deemed necessary and/or
recommended by the City Attorney.
FISCAL IMPACT:
There will be no impact to the General Fund given that commission to a real estate broker
will be paid at the close of escrow on a land sale. The City and CBRE, Inc. have negotiated
the following commission:
Land Sale: 1.0% of the gross purchase price paid by future buyer
CORRELATION TO THE STRATEGIC PLAN:
Execution of a Listing Agreement for real estate brokerage services contributes to the
fulfillment of the City's Strategic Plan Goal A: Economic and Neighborhood Development.
Specifically, this item implements Strategy 1, which is to develop critical phases of Tustin
Legacy.
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City Council Agenda Report
Selection of Real Estate Broker
May 6, 2025
Page 2
BACKGROUND AND DISCUSSION:
On April 15, 2025, the City Council authorized staff to release a competitive offering for
approximately 61 acres of City -owned real property (Site) within a portion of Neighborhood
G (Planning Areas 15-A and 15-C) of the Tustin Legacy Specific Plan (TLSP) pursuant to the
procedures recently approved by the City Council in Resolution 25-10.
Staff is recommending the use of a real estate brokerage firm to assist in finalizing the
marketing and solicitation for a future Request for Proposals (RFP) or offering for the Site.
Staff has found the use of real estate brokerage firms to be useful in market research, drafting
of offering documents, targeting and interviewing potential developers, managing the offering
process, and assisting in recommending developers and/or prospective buyers to the City
Council for consideration.
Staff requests authorization for the City Manager to enter into a Listing Agreement with CBRE
for the Site. CBRE has successfully represented the City on a number of offerings and
dispositions at Tustin Legacy including the Flight office campus and the pending Irvine
Company multifamily community. CBRE is a Fortune 500 and S&P 500 company with
operations in over 100 countries and a global workforce of more than 115,000. CBRE is the
world's largest commercial real estate services and investment firm based on 2024 revenue.
The CBRE team will be led by Michelle Jefcoat, Senior Associate, and Chris Bates, First Vice
President. Ms. Jefcoat has been involved in the sale of more than 24,455 apartment homes
and 26 land sites for residential development of both for -sale homes and apartments
throughout California during her 25-year tenure. Mr. Bates is responsible for more than two
million square feet of commercial property and has completed over $1 billion in lease and
sale transactions at CBRE. Both Ms. Jefcoat and Mr. Bates have been involved in
solicitations and dispositions of property at Tustin Legacy.
Following the negotiation and execution of a Listing Agreement, CBRE will assist the City as
follows over the next several months before an RFP or offering is issued:
- Identify strengths and weaknesses of the property;
- Research and recommendations on buyers, developers and/or tenants to pursue;
- Develop selection criteria for the developer selection process;
- Prepare sample underwriting, graphics, market research with comparable analysis on
the subject property/City/region market for inclusion in the RFP or offering and prepare
a Broker's Opinion of Value;
- Evaluate project feasibility and suggest potential solutions to achieve desired
transaction and development goals of the City;
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City Council Agenda Report
Selection of Real Estate Broker
May 6, 2025
Page 3
- Provide appropriate software to enable initial developer document disclosure,
execution, developer submittals, and developer questions; and,
- Prepare, distribute, and administer the RFP or offering for the subject property in
accordance with the City's vision and City standard terms and conditions.
Following the RFP release, CBRE will assist the City by reviewing proposals, negotiating
best and final price and terms, and assisting with recommending a buyer or lessee for City
Council consideration.
If approved by the City Council, the City will execute a Listing Agreement with CBRE. The
Listing Agreement with CBRE is proposed as a sole -source contract due to their expertise
and proven success in offerings and dispositions at Tustin Legacy. CBRE has previously
partnered with the City on a similar offering in the same neighborhood of the TLSP, giving
them a unique advantage and positioning them to bring a new offering to market more
quickly, with staff anticipating a release in June/July 2025.
Signed by:
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Brian K Aoncnef
Deputy City Manager — Real Property
Signed bye�:
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Kenne iguPee
Real Property Manager
by:
F�Signed
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Ryan wiontek
Deputy Director of Real Property