HomeMy WebLinkAbout07 AMENDED LISTING AGREEMENT WITH CUSHMAN & WAKEFIELD-43 ACRESDocusign Envelope ID: A6BE669C-DB25-44DB-AA21-F69A9AF2C1 F5
Agenda Item 7
AGENDA REPORT Reviewed:
City Manager a`L�
Finance Director
MEETING DATE: FEBRUARY 17, 2026
TO: ALDO E. SCHINDLER, CITY MANAGER
FROM: BRIAN MONCRIEF, DEPUTY CITY MANAGER — REAL PROPERTY
SUBJECT: AMENDED LISTING AGREEMENT WITH CUSHMAN & WAKEFIELD FOR
MARKETING, SOLICITATION, AND NEGOTIATION SERVICES FOR
APPROXIMATELY 43 ACRES OF CITY -OWNED REAL PROPERTY
WITHIN THE TUSTIN LEGACY SPECIFIC PLAN
SUMMARY:
Amended Listing Agreement with Cushman & Wakefield to provide marketing, solicitation,
and negotiation services for approximately 43 acres of City -owned real property within
Neighborhood E (Planning Areas 9-12) and Neighborhood D South (Planning Areas 13-14)
of the Tustin Legacy Specific Plan.
RECOMMENDATION:
Authorize the City Manager to:
1. Negotiate and execute an amended Listing Agreement with Cushman & Wakefield for
the expanded offering area described below, and including a commission in an amount
not to exceed the economic terms described below, in a form approved by the City
Attorney; and
2. Negotiate and execute subsequent amendment(s) to the Listing Agreement provided
the total commission does not exceed the economic terms described below, and the
amendment(s) are in a form approved by the City Attorney.
FISCAL IMPACT:
There will be no impact to the General Fund given that commission to a commercial real
estate broker is paid from the Land Sale Proceeds fund. The City and Cushman &
Wakefield have negotiated the following commission:
Land Sale: 3.0% of gross purchase price up to the first $10,000,000.00
2.0% of gross purchase price between $10,000,000.00 to $20,000,000.00
1.0% of gross purchase price exceeding $20,000,000.00
Docusign Envelope ID: A6BE669C-DB25-44DB-AA21-F69A9AF2C1 F5
City Council Agenda Report
Amended Listing Agreement with Cushman & Wakefield
February 17, 2026
Page 2
Ground Lease: 3.0% of the total lease payments for Years 1-10
*Commission to be capped at first 10 years of ground lease payments.
CORRELATION TO THE STRATEGIC PLAN:
Execution of an amended 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.
BACKGROUND AND DISCUSSION:
On May 20, 2025, the City Council authorized staff to release a competitive offering for
approximately 21 acres of City -owned real property (Site) within a portion of Neighborhood
E (Planning Areas 9-12) of the Tustin Legacy Specific Plan (TLSP) pursuant to City Council
Resolution 25-10. On July 15, 2025, the City Council authorized the City Manager to enter
into a Listing Agreement with Cushman & Wakefield to represent the City on a future Request
for Proposals (RFP) or offering process for the 21-acre Site.
On August 5, 2025, the City Council also authorized staff to release a competitive offering
for approximately 22 acres of vacant land within Neighborhood D South (Planning Areas 13-
14) of the TLSP. Staff is recommending that the City Council expand the RFP or offering and
Listing Agreement to include the additional 22 acres of vacant land for a combined total of
approximately 43 acres, which would accommodate a variety of land uses that may require
a larger footprint than the original 21 acres.
Cushman & Wakefield is a full -service global commercial real estate company with over 100
years of experience, 52,000 professionals and 400 offices worldwide. Cushman & Wakefield
has a market -leading full -service investment sales team located in Orange County, which
has a diverse background in multiple product types, extensive developer/buyer relationships,
and market and analytical expertise to assist the City in the future sale and disposition of the
Site. The Cushman & Wakefield team will continue to be led by Jeffrey Cole (Executive Vice
Chairman, Capital Markets) and Nico Napolitano (Senior Director, Capital Markets).
Cushman & Wakefield will assist the City as follows before an RFP or offering is issued:
- Identify strengths and weaknesses of the properties;
- Research and recommendations on buyers, developers and/or tenants to pursue;
- Develop selection criteria for the developer selection process;
- Prepare sample underwriting, graphics, and 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;
Docusign Envelope ID: A6BE669C-DB25-44DB-AA21-F69A9AF2C1 F5
City Council Agenda Report
Amended Listing Agreement with Cushman & Wakefield
February 17, 2026
Page 3
- Evaluate project feasibility and suggest potential solutions to achieve desired
transaction and development goals of the City;
- 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 properties in
accordance with the City's vision and City standard terms and conditions.
Following the RFP or offering release, Cushman & Wakefield will assist the City with the
marketing process, reviewing proposals, negotiating price and terms, and assisting with
recommending a buyer and/or lessee for City Council consideration. Staff estimates that a
single RFP or offering that includes both sites comprised of approximately 43 acres will be
released in the first quarter of 2026.
Brian Moncrief Ryan Swiontek
Deputy City Manager — Real Property Deputy Director of Real Property