Resolution No. 7213r I$
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RESOLUTION NO. 7213
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
VERNON APPROVING AND AUTHORIZING THE EXECUTION
OF AMENDMENT NO. ONE TO THE CONFIDENTIAL
AGREEMENT FOR REAL ESTATE CONSULTING AND
REPRESENTATION SERVICES BY AND AMONG THE CITY OF
VERNON, THE REDEVELOPMENT AGENCY OF THE CITY OF
VERNON AND MCKINNEY TRAVERS • ONCOR
INTERNATIONAL
WHEREAS, Resolution No. 7000 was adopted by the City
Council on August 5, 1997, approving and authorizing the execution
of a Confidential Agreement for Real Estate Consulting and
Representation Services ("Agreement") by and among the City of
Vernon ("Vernon"), the Redevelopment Agency Board of Directors
("Agency") and McKinney Travers • ONCOR International
("Consultant"); and
WHEREAS, the Agreement provides for an expiration date of
August 5, 1998; and
WHEREAS, Vernon and Consultant desire to extend the term
of the Agreement through and including December 31, 1998.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE
CITY OF VERNON AS FOLLOWS:
SECTION 1: The City Council of the City of Vernon hereby
finds and determines that the recitals contained hereinabove are
true and correct.
SECTION 2: The City Council of the City of Vernon hereby
approves the Amendment No. One to the Confidential Agreement for
Real Estate Consulting and Representation Services, a copy of
which has been presented to the City Council concurrently with
this resolution, and the City Council hereby orders said Amendment
to be received and filed by the City Clerk.
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SECTION 3: The City Council of the City of Vernon hereby
authorizes the Mayor and the City Clerk to execute said Amendment
for, and on behalf of, the City of Vernon.
SECTION 4: The City Clerk of the City of Vernon shall
certify to the passage of this resolution and thereupon and
thereafter the same shall be in full force and effect.
APPROVED AND ADOPTED this 8th day of September, 1998.
EONIS C. MALBUkRG, Mayo
ATTEST•
BRUCE V. MALKENHORST, City Clerk
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STATE OF CALIFORNIA )
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COUNTY OF LOS ANGELES )
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I, BRUCE V. MALKENHORST, City Clerk
of the City of
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Vernon, do hereby certify that the foregoing
Resolution, being
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Resolution No. 7213, was duly adopted by the
City Council of the
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City of Vernon at an adjourned regular meeting
of the City Council
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duly held on Tuesday, September 8, 1998, and
thereafter was duly
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signed by the Mayor of the City of Vernon.
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BRUCE V. MALKENHORST, City Clerk
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(SEAL)
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SUPPORTING
DOCUMENTS
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AMENDMENT NO. ONE
TO THE
CONFIDENTIAL AGREEMENT FOR REAL ESTATE
CONSULTING AND REPRESENTATION SERVICES
THIS AMENDMENT NO. ONE is made and entered into and
executed in triplicate originals, either copy of which may be
considered and used as the original hereof for all purposes this
day of , 1998
BY AND AMONG
AND
THE CITY OF VERNON, hereinafter
referred to as "Vernon,"
4305 Santa Fe Avenue
Vernon, California, 90058
THE REDEVELOPMENT AGENCY OF THE
CITY OF VERNON, hereinafter
referred to as "Agency,"
4305 Santa Fe Avenue
Vernon, California, 90058
MCKINNEY TRAVERS • ONCOR
INTERNATIONAL, hereinafter
referred to as "Consultant,"
2833 Leonis Blvd., Suite 311
Vernon, California 90058
RECITALS
WHEREAS, CITY, AGENCY and CONSULTANT entered into a
Confidential Agreement for Real Estate Consulting and
Representation Services Agreement on August 5, 1997, which
provided for expiration on August 5, 1998; and
WHEREAS, CITY, AGENCY and CONSULTANT desire to extend
said Agreement through and including December 31, 1998.
NOW, THEREFORE, FOR AND IN CONSIDERATION OF THE
'MLTTUAL
PROMISES, COVENANTS AND CONDITIONS HEREIN CONTAINED, IT IS
MUTUALLY AGREED BY AND BETWEEN THE PARTIES HERETO TO AMEND THE
AGREEMENT AS FOLLOWS:
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SECTION 1: The first paragraph of Section 2 of said
Agreement is amended as follows:
"The term of this agreement shall be from August 5,
1997 through and including December 31, 1998, subject to
Vernon and Agency's right to terminate the services
provided for herein on thirty (30) days" written notice."
SECTION 2: In all other respects the terms and conditions
of the Agreement shall remain in full force and effect.
IN WITNESS WHEREOF, the parties hereto have caused this
Amendment No. One to be executed on the month, day and year first
written above.
REDEVELOPMENT AGENCY OF THE
CITY OF VERNON
BY:
LEONIS C. MALBURG, Chairman
ATTEST:
BY:
BRUCE V. MALKENHORST, Secretary
APPROVED AS TO FORM:
BY:
DAVID B. BREARLEY, Legal Counsel
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CITY OF VERNON
BY:
LEONIS C. MALBURG, Mayor
ATTEST:
BY:
BRUCE V. MALKENHORST, City Clerk
APPROVED AS TO FORM:
BY: mv;� . v
DAVID B. BREARLEY, City ttorney
MCKINNEY TRAVERS • ONCOR
WTL7
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BY. y2=7=,
Name: �/Ti �l� 7,
Title: SPA✓/dam .�iE'd%��'/Q
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AMENDMENT NO. ONE
TO THE
CONFIDENTIAL AGREEMENT FOR REAL ESTATE
CONSULTING AND REPRESENTATION SERVICES
THIS AMENDMENT NO. ONE is made and entered into and
executed in triplicate originals, either copy of which may be
.considered and used as the original hereof for all purposes this
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day of , 1998
BY AND AMONG THE CITY OF VERNON, hereinafter
referred to as "Vernon,"
4305 Santa Fe Avenue
Vernon, California, 90058
AND THE REDEVELOPMENT AGENCY OF THE
CITY OF VERNON, hereinafter
referred to as "Agency,"
4305 Santa Fe Avenue
Vernon, California, 90058
AND MCKINNEY TRAVERS • ONCOR
INTERNATIONAL, hereinafter
referred to as "Consultant,"
2833 Leonis Blvd., Suite 311
Vernon, California 90058
RECITALS
WHEREAS, CITY, AGENCY and CONSULTANT entered into a
Confidential Agreement for Real Estate Consulting and
Representation Services Agreement on August 5, 1997, which
provided for expiration on August 5, 1998; and
WHEREAS, CITY, AGENCY and CONSULTANT desire to extend
said Agreement through and including December 31, 1998.
NOW, THEREFORE, FOR AND IN CONSIDERATION OF THE MUTUAL
PROMISES, COVENANTS AND CONDITIONS HEREIN CONTAINED, IT IS
MUTUALLY AGREED BY AND BETWEEN THE PARTIES HERETO TO AMEND THE
AGREEMENT AS FOLLOWS:
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SECTION 1: The first paragraph of Section 2 of said
Agreement is amended as follows:
"The term of this agreement shall be from August 5,
1997 through and including December 31, 1998, subject to
Vernon and Agency's right to terminate the services
provided for herein on thirty (30) days' written notice."
SECTION 2: In all other respects the terms and conditions
of the Agreement shall remain in full force and effect.
IN WITNESS WHEREOF, the parties hereto have caused this
Amendment No. One to be executed on the month, day and year first
written above.
REDEVELOPMENT AGENCY OF THE
CITY OF VERNON
BY:
ONIS C. MAL G, Ch irman
ATTEST:
BY: /�-
BRUCE V. MALKENHORST, Secretary
APPROVED AS TO FORM:
BY: �c � C
DAVID B. BREARLEY, Legal Counsel
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CITY OF VERNON
BY:
E- NIS C. MALBUR , Mayor
ATTEST
BY:
BRUCE V: MALKENHORST, City Clerk
APPROVED AS TO FORM:
BY:
DAVID B. BREARL Y, City torney
MCKINNEY TRAVERS • ONCOR
INTERNATIONAA'L
BY :11A
Name:i/i/rl���/,+
Title:-5016A AO0J(-e-
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07/09/03 15:39 '013235899375
CITY OF VERNON U 001/005
MrcKinnay . T,rarvers
l%'lllllllllll�lllllllll/lll
WarldWde Rea! EoMM Services
2833. Leonis Boulevard
Suite 311
vernon, CA 90058
Ph. ' 323.589.1800
Fmc 323.589.9375
FACSIMILE TRANSMITTAL COVER SHEET"
To be transmitted to FAX number: . (323) 826-1438
Date: July 9, 20 Time:.
To: r. Bruce Malkenhorst From: 'Philip T. Attalla
Company: f Verno _ Number of Pages' 5
(including this page)
Re: 3170 East Washington Boulevard; rnon, California el�
Dear Mr. Malkenhorst:
Attached please find a DRAFT Letter of Intent to Purchase the above referenced
property which is Toeing occupied by Cleveland Wrecking, Inc.
With your. permission and,the City Attorneys review and approval, McKinney Travers
would like to begin the process of acquisition.
Please contact me with any questions.
Sincerely,
Philip T. Attalla
Attachment
cc: Mr. Eddie Qlivo — (562) 86971883
Mr. Chris Romero — (323) 826-1438.
Fpmrffa)6709031mp
Offices In 180 CMOs • unlrea States. Ausino; Belgium, Conodo, Czech Republic, Denmarle, Fronce, Germany, Hang Kong; Japan, The Netherlands. Sweden. United Kingdom
07/09/03 15:39 '&13235899375 4-+4 CITY OF VERNON 2 002/005
,July S, 2003
Ms. Dione R. Fenning
405 Homewood Road
Los Angeles, CA 90049-2713
1V�cKinr�ey .Tr�veN'�
:. l %lllllllllllF1111lllllllllll "
Worldwide Read Estar2 5eo1wLEs
2833 WON$ Boulevard
Suite
311
Vernon,
FT
CA 90058
LJR A
Ph. 323.589.1800
Fox 323.589.9375
Re: Letter of Intent to Sell the real property comprised of building improvements
located on approximately 73,000 square feet of land, which is commonly known
as: 3170 E. Washington Boulevard, Vernon, CA 9o023.:, See Exhibit "A".
Please note, a portion of th'e subject property is located in the City of Vernon and
a portion is located in the City. of Los Angeles.
Dear Ms. Fenning:
McKinney Travers Realty Corporation is pleased to present you with the following Letter
of Intent to Sell the above -referenced property. This Letter of Intent is by and between
The Redevelopment Agency -of the City of Vernon ("Agency' or "Buyer") and Dione R.
Fenning ("Seller"), and summarizes the basic terms and conditions under which Ms.
Fenning would. be interested in -entering into a Sale Agreement for the property.
[. Purchase Price:
$1.150,000.00, all cash to Seller (subject to I_R.S. Section 1033 - Tax Deferred
Exchange), at the close of escrow. The purchase price constitutes all,
consideration due from Agency to Seller for the subject property and any
relocation assistance Seller may be entitled to under state or federal law.
2. Deposit:
Five percent '(5%) of the purchase price shall be delivered to escrow upon
execution of the Purchase Agreement. The deposit shall be placed into an
interest bearing account and all interest shall accrue to Buyer.
3. Cash Balance due uponClosing:
On or before the closing date (defined below), Buyer shall deliver the balance of
'the purchase price, in cash, into escrow.
ntflres in 180 Cities • United States. Au4da Selglurn, Canada, Czech Republic. Denmark, France, Germany, Hong Kong. Japan. The Netherlands, Sweden, united Knodom
07/09/03 15:40 '013235899375 CITY OF VERNON 2 003/005
Ms. Dionne R. Fenning
July 8, 2003
Page 2 ;
4. Inspection Period:
Thirty (ao) days from execution of the Purchase Agreement (the "Inspection
Period") Buyer shall inspect the property, all title matters, all information and
documents in Seller's possession, including without limitation, all financial
information relating to the property and all other matters relating to the property;
provided, however, Buyer shall have no less than fourteen (14) days after
Buyer's receipt of any information in Seller's possession to review and
disapprove of the same. Upon mutual execution of this Letter of Intent, Seller
shall deliver or make accessible'to Buyer all property information, including,
without limitation, past and current rent rolls and operating statements; a
preliminary title report for the property to be issued by North American Title
Company, and any end-all reports, including environmental 'assessments, and
plans relating to the property.
5. Condition of the Property upon :Delivery to Buyer:
Seller shall deliver the property to Buyer at the close of escrow in an "As Is"
condition except, Seller will remove one underground fuel tank that exists at'
the site. Further, the property shall be free and clear of all -other hazardous
and/or toxic materials and waste (as those terms are defined and used in
applicable federal and state environmental laws), exceptes specifically agreed to
by Buyer in writing on such terms and conditions that Buyer, in its sole discretion,
may approve. In addition, Seller shall obtain appropriate closure confirmation
documents from the applicable local, regional or state governmental agency with
respect to clean up or removal of underground tanks, hazardous materials or
toxic materials from the property.
Lastly, Seller will agree to demolish all -building(s) above ground, but the timing of
such demolition will be determined by the Seller's Leaseback (see Paragraph
10). Should Seller leaseback site and wishes to use existing building(s),
demolition will occur after the leaseback period, and Seller will instruct
Escrowholder to retain $50,000 deposit to ensure demolition is completed after
leaseback period.
6. indemnification:
Seller shall remain responsible for any contamination of the -property due to
hazardous substances caused or created prior to the close of escrow, and shall
indemnify, defend and hold Agency harmless from any and all liability related to
such contamination.
A=fla/DFcn=91,np
07/09/03 15:40 V13235899375 CITY OF VERNON 191004/005
Ms. Dionne R. Fanning
July 8, 2003
Page 3
7. Closing Date:
Sixty (60) days after execution of the Purchase Agreement.
g. Title and Escrow:
North American Title Company shall underwrite title and Commerce Escrow
Company shall be the escrow company.
g, Fee and Costs:
Seller shall pay (a) the costs for the standard title insurance policy, and
commercially reasonable endorsements; (b) all transfer taxes, if any; (c) any
title exam fees, and (d) one-half (1/2) of the escrow fees. Buyer shall pay (a)
the additional costs for an ALTA policy requested by Buyer; (b) one-half (1/2) of
the escrow fees; and (c) the recording fees for the grant deed.
10. Seller Leaseback:
Seller. may consider leasing and subsequently subleasing the subject property
from Agency at the following summarized terms and canditions:
Leaseback
Premises: Entire property, including existing building(s).
Leaseback Term: Close of Escrow through September 30, 2004. Should the
parties agree, leaseback term may be extended for thirty
(30).day intervals.
Leaseback Rate: $1.00 (one dollar) per month, on a Modified Net basis.
Agency shall pay property taxes, but. Seller/Lessee shall
pay property insurance, property maintenance and any
warehousing parcel tax.
All other terms and conditions of the Leaseback Agreement shall be agreed
upon in escrow.
11. Broker Fees:
Seller shall pay broker; McKnney Travers Realty Corporation, a real estate
brokerage fee equal to six percent (60/6) of the purchase price, which shall be
paid at the close of escrow out of the sale proceeds.
AVa11&DFannin9/-P
07/09/03 15:41 %213235899375 444 CITY OF VERNON 2 005/005
Ms.. Dionne R: Fenning
July 8, 2003..
Page 4
12. Purchase Agreement:
Within ten (10) business days after execution of this Letter of Intent, Agency
shall deliver to Seiler a formal Purchase Agreement for its review and approval.
This Letter of Intent is non -binding and merely delineates the proposed terms and
conditions of the transaction contemplated. -by the parties. if the terms and conditions
herein are acceptable, please deliver a signed copy to my office on or before 5:00 p.m_,
Los Angeles time, on Thursday, July 17, 2003. Please call if you have any questions.
Sincerely,
McKinney Travers • ONCOR Internatiich.al
Philip T. Attalla John J. Whalen
Senior Associate Senior V.P. & Managing Director
PTA/JJW/ly
Reviewed and Approved
Proposed Seiler: Dione R. Fenning
Owner Jul 2003.
By: Title
Dione R. Fenning
Accepted and Agreed
Proposed Buyer: The Redevelopment Agency of the City of Vernon
Executive Director : Jail 2003
By: Title Date
Bruce Malkenhorst
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AMENDMENT NO. ONE
,TO THE
CONFIDENTIAL AGREEMENT FOR REAL ESTATE
CONSULTING.AND REPRESENTATION SERVICES
THIS AMENDMENT NO. ONE is made and entered into and
executed in triplicate originals, either copy of which may be
considered and used as the original hereof for all purposes this
day of , 1998
BY AND AMONG THE CITY OF VERNON, hereinafter
referred to as "Vernon,"
4305 Santa Fe Avenue
Vernon, California, 90058
AND THE REDEVELOPMENT AGENCY OF THE
CITY OF VERNON, hereinafter
referred to as "Agency,"
4305 Santa Fe Avenue
Vernon, California, 90058
AND MCKINNEY TRAVERS • ONCOR
INTERNATIONAL, hereinafter
referred to as "Consultant,"
2833 Leonis Blvd., Suite 311
Vernon, California 90058
RECITALS
WHEREAS, CITY, AGENCY and CONSULTANT entered into a
Confidential Agreement for Real Estate Consulting and
Representation Services Agreement on August 5, 1997, which
provided for expiration on August 5, 1998; and
WHEREAS, CITY, AGENCY and CONSULTANT desire to extend
said Agreement through and including December 31, 1998.
NOW, THEREFORE, FOR AND IN CONSIDERATION OF THE -MUTUAL
PROMISES, COVENANTS AND CONDITIONS HEREIN CONTAINED, IT IS
MUTUALLY AGREED BY AND BETWEEN THE PARTIES HERETO TO AMEND THE
AGREEMENT AS FOLLOWS:
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2E
SECTION 1: The first paragraph of Section 2 of said
Agreement is amended as follows:
"The term of this agreement shall be from August 5,
1997 through and including December 31, 1998, subject to
Vernon and Agency's right to terminate the services
provided for herein on thirty (30) days' written notice."
SECTION 2: In all other respects the terms and conditions
of the Agreement shall remain in full force and effect.
IN WITNESS WHEREOF, the parties hereto have caused this
Amendment No. One to be executed on the month, day and year first
written above.
REDEVELOPMENT AGENCY OF THE
CITY OF VERNON
BY:
LEONIS C. MALBURG, Chairman
ATTEST:
BY:
BRUCE V. MALKENHORST, Secretary
APPROVED AS TO FORM:
BY:
DAVID B. BREARLEY, Legal Counsel
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CITY OF VERNON
BY:
LEONIS C. MALBURG, Mayor
ATTEST:
BY:
BRUCE V. MALKENHORST, City Clerk
APPROVED AS TO FORM:
BY: V
DAVID B. BREARLEY, City ttorney
MCKINNEY TRAVERS ONCOR
INTERN T ONAL
T BY:
Name : A, �I�
Title: SPA✓/ ,��el�%'Gie
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CITY COUNCIL
LEONIS C. MALBURG
Mayor
THOMAS A. YBARRA
Mayor Pro-Tem
Wm. 'BILL" DAVIS
Councilman
H. "LARRY" GONZALES
Councilman
W. MICHAEL McCORMICK
Councilman
BRUCE V. MALKENHORST CITY HALL
City Administrator/City Clerk 4305 SANTA FE AVENUE, VERNON, CALIFORNIA 90058
FAX: (213) 581-7924 TELEPHONE (213) 583-8811
September 22, 1998
McKinney Travers • Oncor International
2833 Leonis Blvd., Suite 311
Vernon, CA 90058
Attn: Mr. Philip T. Attalla
DAVID B. BREARLEY
City Attorney
FAX: (818) 330-5818
KEVIN WILSON
Director of Community Services & Water
FAX: (213) 588-2761
KENNETH J. DeDARIO
Director of Light & Power
FAX: (213) 583-1983
DAVE TELFORD
Fire Chief
FAX: (213) 581-1385
LOUIS ROSENKRANTZ
Police Chief
FAX: (213) 581-1178
Re: Amendment No. One to the Confidential Agreement for
Real Estate Consulting and Representation Services
Dear Mr. Attalla:
Enclosed herewith is a duplicate original of the above referenced
Agreement, which was approved by the City Council of the City of
Vernon on September 8, 1998 by Resolution No. 7213.
An original has been retained by this office and the by the
Redevelopment Agency.
If you have any questions, please give this office a call.
Ver truly yours,
i�a"J. o cow
Chief Dep y City Clerk
GJO:rcw
08/05/98 10:10
FAX 213 589 9375
MCKINNEY & CO. —) CITY OF VERNON Q 007/007
August 5, 1998
Ms. Gloria Orasco
Chief Deputy City Clerk
City of Vernon
4305 Santa Fe Avenue
Vernon, CA 90058
McKinney Travers
Worldwide Rea! Fatwte Services
2833 Leonis Boulevard
Suite 311
Vemon, CA 90058
Ph. 323.589,1800
Fax 323.589,9375
Re: Agreement for consulting services by and between
The City of Vernon, The Redevelopment Agency of the City of Vernon
and McKinney Travers • ONCOR International
Dear Gloria: ,
The above -referenced consulting agreement expires on or about August 20,
1998.
McKinney Travers would like to request an extension of the contract until
December 31, 1999. This date corresponds with the projected close of escrow
for the Redevelopment Agency's acquisition of the AKZO-Nobel property (along
with its surrounding sites), which must occur after all environmental remediation
has been completed.
If there are any questions, please contact either one of us at (323) 589-1800.
Sincerely,
McKinney Travers • ONCOR International
The Industrial Division of Travers Realty Corporation
Ted Attalla Jack Whalen
Senior Broker ' Senior Broker
TA/JWlly
cc: Bruce Malkenhorst, City Administrator, City of Vernon
Damian' McKinney, McKinney Travers • ONCOR International
rAdnCAntalorosco
�Q Tr
avers Realty
VllllllllllllllllllllllllllllllIII •
FACSIMILE �$MtTT, LA SHEET
Wo�YgWvl� Rea! Utate 5�rvlr�s
I
TOTAL NUMBER OF PAGr=s 550 South'Hope'Street
INCI.UDiNG FAX COVER PAGE Suite 26WLos Angeles, CA 90071
Ph. 213-683.1500
Fax 213, 955.9850
4
'� - Industrial Real E_
�. st ire
a2833 Laonis Boulovara, Suite 311 • V9rnon. Callforrnia 90p58 • Tel: (213) 589-1800 • Fax: (213) 589.9375
July 21,'1997
Mr. Bruce Malkenhorst Mr. David B. Brearly
City Administrator City Attorney
City of Vernon City of Vernon
4305 Santa Fe Avenue 4305 Santa Fe Avenue
Vernon, CA 90058 Vernon, CA 90058
Dear Messrs. Malkenhorst & Brearly:
This letter is to confirm that you have given us the exclusive right to represent
The City of Vernon and/or its Redevelopment Agency ("The City") in
conjunction with the acquisition of properties by the City of Vernon . Further, you
have granted us permission to contact prospective property owners on your
behalf and to solicit information which we will then present to you.
McKinney Travers • ONCOR International ("McKinney Travers") services
provided during the acquisition process shall include providing market
information, negotiation of the business terms including purchase price and
transaction timelines, supervision of the escrow transfer process, review of Title
Insurance documentation, review of environmental and soils Phase I & Phase it
reports, review of construction and development analysis, and submittal of full
documentation of all transaction information to the City Attorney.
McKinney Travers shall provide a review of sites located in the City and it's
Redevelopment Zone and shall make recommendations on potential sites for
possible acquisition by The City.
McKinney Travers shall not obligate you in any way without your express written
approval and all detailed negotiations with any property shall only be undertaken
with your knowledge and consent. It is further agreed that McKinney Travers
shall seek a commission or fee as your representative from the property selected
by you in conjunction with your purchase agreement. No commissions or fees
shall be owed to us by you for the services rendered herein,
Los Angeles Office Orange County Office
550 South Hope sveai, suite 2600 4V5 MacArthur Court, Suite 1210
Log Angeles, California 90071 'NBWpOrt Saach, California 92660
Teo (213) 683-1500 • Fax: (213) 955-98.50 Tel: (71 a) 156.5900 - FAX: (714) 758-2020
Za'd Wd9b:S0 L66T-Tz—La
Messrs. Malkenhorst & Brearly
July 21, 1997
Page 2 of 3
Further; McKinney Travers shall contribute up to fifty (50%) percent of any and
all real estate brokerage commissions earned by McKinney Travers on
successfully, consummated transactions to The City. Such City commissions
shall be applied towards transactional costs to the benefit of The City such as:
Escrow Fees and Closing Costs, Title Fees, City Attorney Fees and any and all
Independent Consultant Reports related to the transaction which shall include
Environmental Reports, Appraisals, and Surveys. Any remaining balance of City
commissions shall be credited toward the purchase price on behalf of The City at
the close of escrow. In the event the foregoing commissionsplit arrangement
becomes unequitable for either party, The City and McKinney Travers agree to
discuss alternative compensation arrangements with respect to the real estate
brokerage commissions.
This exclusive authorization has been granted by you and The City for a period
of twelve (12) months, commencing as of the date accepted below. It is
understood and agreed that you will not enter into any purchase agreement for
any property without McKinney Travers recognized as your exclusive agent_
The City and McKinney Travers agree to discuss at a later date the marketing
and disposition of the sites which are successfully acquired by The City.
The City shall, at The City's sole and absolute discretion, have the unilateral right
to terminate the services of McKinney Travers if The City is dissatisfied with such
real estate brokerage service as rendered, but The City must state the reason for
their dissatisfaction and prior to The City's termination of McKinney Travers
services The Citymust have a face-to-face meeting with McKinney Travers to
discuss their termination.
Lastly, after the expiration of this agreement, McKinney Travers shall be
recognized as The City's broker in accordance with the terms hereof with respect
to any properties which McKinney Travers has submitted to you for consideration
of purchase opportunity for a period of six (6) months following the expiration of
this agreement, or for the duration of any specific pending purchase
negotiations.
c;ldocslptalmalkcnho
�O'd Wd9b:SO L66T—ZZ—LO
PO' d -1d101
Mr. Bruce Malkenhorst
July 21, 1997
Page 3 of 3
If the foregoing meets with your
understanding and approval, please sign in the
space provided below.
Sincerely,
AGREED TO AND ACCEPTED:
The City of Vernon
Philip T. Attalla
This day of , 1997
Senior Broker
By:
Title_
Damian McKinney
Senior Broker
John J. Whalen
Senior Broker
CITY OF VERNON
A PROPOSAL FOR TENANT REPRESENTATION SERVICES
Prepared for
Mr. Bruce Malkenhorst
City Administrator
July 18, 1997
Prepared by.
Damian McKinney
Senior Broker
Philip T. Attalla
Senior Broker
TraVBI"8 Realry
550 South Hope St., Suite 2600, Los Angeles, CA 90071
Tel. (213) 683-1500
Fax (213) 955-9850
w HdWa rreat.r.. rare servx�
2833 Leonis Blvd., Suite 311, Vernon, CA 90058
Tel. (213) 589-1800
Fax (213) 589-9375
4675 MacArthur Ct., Suite 1210, Newport Beach, CA 92660
Tel. (714) 756-5900
Fax (714) 756-2020
4370 La Jolla Village Dr., Suite 655, San Diego, CA 92122
Tel. (619) 646-7400
Fax (619) 646-7404
TABLE OF CONTENTS
1. MISSION STATEMENT
2. ONCOR INTERNATIONAL - LEADERS IN WORLDWIDE REAL ESTATE SERVICES
3. SELECTED PICTORIAL OF COMPLETED TRANSACTIONS
4. MCKINNEY TRAVERS - ONCOR INTERNATIONAL PROFILE
5. SCOPE OF SERVICES
6. PROJECT TEAM AND BIOGRAPHIES
7. PARTIAL CLIENT LIST
8. REFERENCE LIST
9. ARTICLES
MISSION STATEMENT
The foundation of McKinney Travers • ONCOR International is summed by the following four core
concepts:
TRUST
McKinney Travers • ONCOR International is recognized as the "Founding Father" of tenant brokerage
in Southern California. As the Tenant Broker for the past 18 years we have eliminated any conflict of
interest. Therefore, the integrity of our philosophy has gained the trust and confidence of our clients.
STRENGTH
The national recognition our firm has gained is based upon our negotiating skills. Your firm will have
the benefit of knowing that McKinney Travers • ONCOR International has the strength and expertise
in negotiating similar sized transactions in all of the markets you would like to explore.
VALUE
We recognize the impact that your real estate obligations can have on your firm's profitability. Our
goal is to create the most competitive real estate transaction in each marketplace.
RESULTS
Francis Bacon once said: "Wise men create more opportunities than they find." Once we determine
your objectives, we will find a way to create the right opportunity for you. We have the market
knowledge and negotiating experience to create and implement transactions similar to City of Vernon.
ONCOR INTERNATIONAL - WORLDWIDE REAL ESTATE SERVICES
ONCOR International is an organization of leading independent commercial real estate firms
dedicated to providing the highest quality services to clients in all sectors and regions. We offer a
highly -controlled system based on the philosophy that superior service and results are best achieved
by merging an understanding of the client's needs with local market knowledge worldwide. The
varying requirements of our clients are met by teams of specialists drawn from over 6,000 real estate
professionals in more than 200 markets and 40 countries worldwide. The following provides a brief
overview of our organization, our services and products, and the reasons why so many clients believe
in and use the ONCOR system.
• Services and Products
Building Consultancy - Computer Aided Design - Feasibility Studies - Interior Design - Project
Development / Construction Supervision - Refurbishment Advice
• Corporate Real Estate
Asset Management - Corporate Services - Facilities Planning - Options Appraisal - Real Estate
Strategy - Space Utilization
• Development Consultancy
Design - Feasibility Analysis / Market Studies - Project Monitoring / Project Management
• Investment
Acquisitions - Development Financing - Disposals / Dispositions - Fund Management - Sale &
Leaseback
• Office / Industrial
Acquisitions / Compulsory Purchase - Development Consultancy - Disposals - Lease Renewals /
Rent Reviews - Local Taxation - Sale & Purchase of Land - Tenant Representation
• Planning
Appeals and Inquiries - Applications & Negotiations - Development Plans Monitoring -
Environmental & Economic Impact - Regeneration & Development - Site Assessment
• Research
Demographic Studies - Forecasting - Market Research - Portfolio Analysis
• Retail
Acquisitions - Compulsory Purchase - Development Consistency - Disposals - Lease Renewals -
Local Taxation - Rent Reviews - Shopping Center Management - Shopping Center Marketing
Sale & Purchase of Land - Tenant Representation
• Specialty Services
Capital Markets Group - Life Sciences Group - Operating Expense Audit Group
• Valuation /Appraisal
_ Confidential Strategic Reviews - Corporate Accounts - Highest & Best Use Studies - International
Asset Valuation (Appraisal) - Litigation Advice - Mortgage / Securitization - Periodic Real Estate
Valuation - Public Floatation Advice - Taxation / Rating
SELECTED PICTORIAL OF COMPLETED TRANSACTIONS
The following section includes a brief description of several transactions that we have
concluded on behalf of our corporate and professional clients. In each transaction, McKinney
Travers • ONCOR International increased its clients' profitability by substantially reducing
their occupancy costs.
\ \
DAVIDSON AND ASSOCIATES
19840 PIONEER AVENUE
Torrance, California
Square Feet: 80,000
Type of Transaction. Land Sale /Build -to -Suit
TRAVERS REALTY CORPORATION
TENANT:
TORRANCE MEMORIAL HOSPITAL
3275 SKYPARK DRIVE
Torrance, California
Square Feet: 20,000
Type of Transaction: Building Sale
TRAVERS REALTY CORPORATION
TENANT:
MOLINA MEDICAL CENTER HEADQUARTERS
ONE GOLDEN SHORE
Long Beach, California
Square Feet: 38,000
Type of Transaction: Lease
TRAYERS REALTY CORPORATION
TENANT:
NORTHROP / GRUMMAN
4900 ALEXANDER STREET
City of Commerce, California
Square Feet: 190,000
Type of Transaction: Lease
T'RAVERS REALTY CORPORATION
TENANT:
TRIC®R
(Division of US Freightways)
tt
C _
-- ,
s
Ali
ie
— 4651 East Brickell Street
Ontario, California
Square Feet: 237,000
— Type of Transaction. Lease
— TRAVERS REALTY CORPORATION
COMPANY PROFILE
McKinney Travers • ONCOR International, Southern California's largest independent tenant
representation firm, has always been guided by one premise: to increase its corporate and
professional clients' profitability by reducing their occupancy costs. Founded in 1978, McKinney
Travers • ONCOR International currently maintains its Corporate Headquarters in Los Angeles,
California, and employs a total of twenty-five real estate brokers supported by ten full-time staff
members.
As a member of the ONCOR team of top -ranked independent commercial real estate firms around
the world, McKinney Travers • ONCOR International provides its customers and clients with in-depth
knowledge of more than 200 markets internationally, and is dedicated to serving client companies
with needs in multiple locations worldwide.
McKinney Travers • ONCOR International has executed some of the largest and most complex real
estate transactions on behalf of its clients. It is Travers' diverse experience and knowledge that gives
it the ability to execute the most creative real estate transactions including building and land
acquisitions, build -to -suits, renegotiated leases, leases with purchase options or equity participation,
straight lease transactions and sale/leasebacks. Its transaction portfolio includes every type of
building: high-rise, low-rise, R&D and industrial.
Specializing in the representation of professional and corporate clients over past eighteen years,
McKinney Travers • ONCOR International has negotiated over 2,000 transactions valued in excess of
$1 billion. Travers' success throughout this time can be attributable to its high level of client service,
sophisticated market knowledge and personal commitment to negotiating the smartest possible
transaction. These qualities have made it possible for McKinney Travers • ONCOR International to
establish long-term relationships with clients such as: 20th Century Insurance; SunAmerica;
Kaufman & Broad; Trust Company of the West; Countrywide Home Loans; and Fannie Mae.
COMPANY PROFILE
McKinney Travers staffs each project with an experienced group of real estate professionals from
Travers` Consulting Group. From lease administration, market research, financial analysis to
construction -related items, Travers is able to offer a complete range of professional services to
complement its brokerage services. This approach of providing professional expertise in conjunction
with our brokerage skills leverages our knowledge and experience, thereby maximizing the value that
Travers brings to City of Vernon.
Brokerage Services
Los Angeles Office
Orange County Office
James N. Travers
Steven T. Card
Geoffrey S. Barton
Reynolds T. McCabe
Forrest Blake
Randall S. Parker
Charles P. Charis
Matthew F. Wiley
Jason S. Corbett
Steven N. Eyler
Industrial Office
Howard B. Feuerstein
Philip T. Attalla
James L. Fish
Damian McKinney
Jay Hanley
Thomas Montgomery
Michael G. Jones
John Jack Whalen
George C. Katunich
W. Lawson Martin, III
San Diego Office
Jeffrey D. Mintz
Edward L. Bushor, Esq.
Dennis E. Smith
Stephen R. Lloyd
Consulting Services
Michael D. Bloes — Financial Analysis
Daisuke Yamada — Market Research Associate
Donald W. Kopp — Lease Administration
COMPANY PROFILE
Offices
Services
Los Angeles
Brokerage Services
Orange County
Consulting Services
Vernon
Market Research
San Diego
Financial Analysis
—
Lease Administration
Legal Review
SCOPE OF SERVICES
The following Scope of Services has been developed by McKinney Travers • ONCOR International
with one concept in mind: to reduce its clients' occupancy costs. This Scope of Services can be
revised to reflect the unique real estate requirements of City of Vernon.
PHASE I - ORIENTATION & ADMINISTRATION
Review and abstract existing leases on City of Vernon's behalf. Prepare comprehensive
schedules summarizing lease expirations and other critical occupancy dates.
Determine City of Vernon's Real Estate Requirements by meeting with its corporate
management, as well as applicable local division senior management, to listen to their ideas with
respect to each individual office's real estate requirements. Based on the information obtained locally
and at the corporate level develop occupancy standards, including:
• Short and long-term needs.
• Future expansion issues.
• Usable square foot per employee ratios.
• Building quality standards to be met by City of Vernon.
• Image identification, including signage.
PHASE ll - STRATEGY
Prepare a strategic plan that outlines City of Vernon's real estate goals and objectives.
Evaluate occupancy alternatives for each location including:
• Long Term Lease Transaction
• Build -to -Suit / Lease Transaction
• Build -to -Suit / Purchase Transaction
• Purchase an Existing Building Transaction
Present the results of our preliminary evaluation work. Assist City of Vernon in determining how
each individual real estate requirement fits into its overall operating strategy.
PHASE Ill - PROJECT SCHEDULING
Prepare a responsibility timetable that outlines the nature and timing of all critical dates with
respect to any particular transaction, and include a tickler file that specifies target dates for upcoming
negotiations.
Assemble a list of recommended consultants including interior architects, construction managers,
contractors, and telephone/cabling vendors. Centralize the outside consultant function as much as
possible in order to develop uniformity.
SCOPE OF SERVICES
Present the above information to City of Vernon's management for their discussion, input and
modification based on the unique conditions of their particular requirements.
PHASE IV- TRANSACTION PROCESS
Recommend the projects in the survey that would best accommodate the requirement and
maximize leverage in negotiations with existing landlord.
Contact City of Vernon's Landlord in order to begin renegotiating the existing lease.
Prepare proposals to be submitted to qualified projects outlining the major legal and economic
issues that need to be addressed in negotiating the real estate transaction. Develop standardized
proposals that extensively address major lease and legal issues up -front, thereby streamlining
negotiations with the responding landlords.
Negotiate the most favorable real estate transaction possible by creating leverage among the
competing projects.
Provide ongoing financial and economic analyses of the proposed transactions in order to assist
in evaluating the progress of negotiations.
Review and critique the proposed lease and workletter in order to ensure that all issues
addressed during the course of negotiations are included in these documents.
Monitor construction of City of Vernon's premises in order to ensure that the lease commences
on a timely basis and that commencement is consistent with the lease document.
PHASE V - ONGOING SERVICES
Monitor the transaction after occupancy in order to ensure that future space requirements such as
expansions, contractions or renewals are executed in City of Vernon's favor.
Offer subleasing services in the event of an under utilization of leased space or other needs arise
to dispose of leased facilities.
Orchestrate a review of City of Vernon's operating expense escalations over its lease term to
determine if any overpayment has occurred. This review will ensure that City of Vernon's Landlord
complies with the terms of the new lease document.
Meet with City of Vernon's management on a regular basis to keep them apprised of the status of
its real estate position.
PROJECT TEAM
McKinney Travers • ONCOR International has selected a Project Team that is commensurate
with the size and scope of City of Vernon's project.
TRAVERS BROKERAGE
Damian McKinney and Philip T. Attalla
Senior Broker, will act as project manager and will personally be involved with this project on a day-
to-day basis. Mr. McKinney and Mr. Attalla will conduct all the negotiations.
TRAVERS CONSULTING
Michael D. Bloes
Michael D. Bloes joined McKinney Travers • ONCOR International in 1992 as a Real Estate Analyst
in Travers' Los Angeles office. In this capacity, he is responsible for managing the financial analysis
and market research functions of Travers' Consulting Group. Mr. Bloes is involved in all phases of
client transactions and projects.
Daisuke Yamada
Market Research Associate, will be responsible for providing general support services, including
detailed market information, demographic studies and property profiles.
DAMIAN McKINNEY
Biography
Damian McKinney has teamed up with Travers Realty • ONCOR International to provide the
Travers organization with additional 16 years of experience in Tenant Representation. Mr.
McKinney founded McKinney & Company, Inc. in 1982, and quickly became one of the
preeminent brokers in Southern California specializing in representing firms such as Hughes,
Northrop, Burlington Northern Air Freight, Bell and Howell, and Bekins.
Since 1987, Mr. McKinney has been a distinguished lecturer at USC and UCLA, as well as
other California State Universities. In 1992, Mr. McKinney was honored as Broker of the Year
for handling the largest transaction at McDonnell Douglas. In 1994, he represented the
largest office lease for a law firm in the City of Pasadena for a total consideration of
$14,000,000. Mr. McKinney reduced the law firm's rental rate from $3.07 per square foot to
$1.62 per square foot.
Below is a partial list of transactions handled by Mr. McKinney:
Bell & Howell / For a combined sale lease -back, acquisition and dispositions of
approximately 300,000 square feet in the cities of New York, Atlanta, Los Angeles, Santa Ana,
Long Beach and Houston;
Molina Medical Centers (HMO) /The acquisition of 70,000 square feet of office throughout
Southern California. This included the leasing of One Golden Shore in downtown Long Beach
at $0.65 per square foot modified net with a ratio of 5 parking spaces per 1,000 square feet
leased, free of charge for a ten year term. One Golden Shore is known as one of the highest
quality buildings in the center of downtown Long Beach;
Hewlett-Packard/ In the disposition of 71,000 square feet of office space in Hawthorne, CA;
Davidson & Associates /The acquisition of their corporate headquarters. This transaction
included the purchase of the land as well as assistance in providing a build -to -suit for
eventually 80,000 square feet of office. On behalf of Davidson, Mr. McKinney located and
negotiated the lowest lease rate in the Greater South Bay area of Los Angeles when he
leased a 100,000 square foot state-of-the-art concrete tilt -up for $0.14 per square foot,
modified gross, when other tenants were paying $0.25 to $0.32 per square foot.
DAMIAN McKINNEY
Biography
In September of 1996, Mr. McKinney represented Davidson in the acquisition of a 350,000
square foot industrial land office complex. The purchase price was approximately 15% below
the average comparables in the market;
Northrop /The acquisition of 700,000+ square feet of warehouse and research and
development facilities;
Hughes/Mr. McKinney has represented Hughes since the early 1980's in the acquisition of
approximately 200,000 square feet of research and development, as well as warehouse
space, throughout the Los Angeles basin. When representing Hughes, Mr. McKinney
introduced the concept of acquiring property through a "blind offer" which effectively reduced
their cost per square foot by as much as 20% to 30%;
Dairy Fresh / Mr. McKinney provided Dairy Fresh with an investor for the sale -leaseback of
their corporate headquarters in Ontario for 268,000 square feet;
U.S. Freightways - (TR/COR Warehousing Division) / Mr. McKinney represented U.S.
Freightways in the leasing of a 250,000 square foot warehouse in Ontario, California. The
warehouse was under construction, therefore, U.S. Freightways was able to receive a building
with many build -to -suit features not available in existing buildings. With many extra tenant
improvements, U.S. Freightways was still 15% below all comparable new building lease rates.
Prior to Mr. McKinney entering the Commercial Real Estate Business, he graduated from the
University of Southern California with a Major in Business Administration with an emphasis on
Finance. He has served as a Member of the Board of the American Cancer Society as well
as volunteered for other philanthropic organizations.
PHILIP T. ATTALLA
Biography
Philip Attalla has focused exclusively on the corporate real estate market for the past six years. Mr.
Attalla has also been an active member of the American Industrial Real Estate Association for the
last six years. Mr. Attalla has primarily represented corporations in the acquisition of industrial real
estate, helping to facilitate the negotiations at below market rates, as well as having an in-depth
understanding of the governmental permitting and licensing process. Some of Mr. Attalla's
transactions include:
M & M Distributors /40,000 square foot lease of cold storage industrial space in the heart of the
Downtown Los Angeles Produce Market;
Baby Guess Jeans, Inc. /30,000 square foot lease of industrial warehouse in Los Angeles;
Expressway Apparel150,000 square foot lease transaction of an industrial warehouse in the City
of Vernon;
LA Industrial Laundry/55,000 square foot relocation of industrial space in the City of Vernon;
Armstrong Environmentals/30,000 square foot industrial warehouse lease transaction in the City
of Vernon;
Benji Electronics/30,000 square foot industrial sale in Los Angeles;
Samson Electronics/26,000 square foot lease transaction in the City of Commerce;
S & S Supplies / 131,000 square foot industrial warehouse sale in the City of Commerce.
Continued Real Estate Education & Training
-- "Legal Aspects of Commercial/Industrial Lease Transactions"
"Commercial Property Appraisal"
"Real Estate Practice"
"Critical Success Factors in Commercial Real Estate"
"Communications & Negotiating Techniques for Real Estate Transactions"
"Analysis of Commercial Leases"
"Real Estate Law"
MICHAEL D. BLOES
Biography
Michael D. Bloes joined Travers Realty • ONCOR International in 1992 as a Real Estate
Analyst in Travers Realty • ONCOR International's Los Angeles office. In this capacity,
he is responsible for managing the financial analysis and market research functions of
Travers Realty • ONCOR International's Consulting Group. Mr. Bloes is involved in all
phases of client transactions and projects.
In addition, Mr. Bloes is responsible for:
• Sophisticated real estate financial analysis including: (i) lease analysis, including lease
with equity analysis; (ii)lease vs. buy comparisons; (iii) financing alternatives; (iv) asset
valuations; and (v) feasibility studies.
• Proposal development and recommendation.
• Presentation creation and development.
Mr. Bloes has been involved with some of Travers Realty's most valued and important
clients, including:
• 20th Century Insurance Company
• SunAmerica Inc.
• Gibson, Dunn & Crutcher
• Trust Company of the West
• The Fuji Bank, Ltd.
• Countrywide Credit Industries
Prior to joining Travers Realty • ONCOR International, Mr. Bloes worked in the Los
Angeles office of Cushman Realty Corporation, where he managed various real estate
brokerage assignments on behalf of Cushman's clients.
Mr. Bloes has also worked for over three years as a CPA for the accounting firm of Arthur
Andersen in San Francisco. He was responsible for providing audit and accounting
services to some of the largest corporations in the Bay Area. Mr. Bloes received his
Masters Degree in Accounting from the University of Southern California.
DAI S u KE YAMADA
Biography
Daisuke Yamada joined Travers Realty • ONCOR International in 1996 as a Real Estate
Analyst specializing in market research. His involvement in a project is providing up-to-
date market data.
Mr. Yamada's responsibilities include:
• Detail market survey of Southern California office and industrial markets;
• General market survey of outer regions and international markets;
• Providing clear and informative market survey result to the clients.
In addition, Mr. Yamada is also responsible of:
• Creation of market database and its maintenance;
• Semiannual market survey of Los Angeles, Orange County and Inland Empire
markets.
Mr. Yamada has been involved with major transactions such as:
• 20th Century Insurance Company
• Asahi Bank, Inc.
• Countywide Credit Industries
Prior to joining Travers Realty, Mr. Yamada worked at Marcus & Millichap and Coldwell
Banker Real Estate as a market researcher. Through his experience, he has become
familiar with the market conditions of investment properties and the residential market in
the San Diego region.
Mr. Yamada received two Bachelor of Art Degrees in Economics and Urban Planning
from the University of California at San Diego. His emphasis was urban economics of
Southern California.
PARTIAL CLIENT LIST
The following represents Travers Realty • ONCOR International's partial client list.
Travers Realty • ONCOR International has represented over 3,000 clients since its inception
in 1978.
— ACCOUNTING
Automobile Club of Southern
INSTITUTIONAL FINANCE
Caruthers & Skeffington
California
Algemene Bank
Deloitte Haskins & Sells
County of Los Angeles
Nederland N.V.
— Pannell Kerr Forster
Forty Plus of Southern CA
Amplicon Financial
Phillips, Rosen & Company
Japan Business Association
Australia & New Zealand
Portfolio Management &
Los Angeles Community
Banking Group, Ltd.
— Accounting
College District
Banamex
Rivin, Wenzel & Co.
Los Angeles Olympic
Banca Serfin, S.N.C.
Roth, Bookstein & Zaslow
Organizing Committee
Banco de Estado de Sao
— S.K. Kojima & Co.
Southern California
Paulo
Association of
Banco de Exterior de Espana
ADVERTISING
Governments (SCAG)
Banco de la Provincia de
—
American Association of
Buenos Aires
Advertising Agencies
Banco do Brasil, S.A.
West
DIVERSIFIED FINANCE
Bancomer, S.N.C.
Cohen/Johnson, Inc.
Cohen/Johnson, —
Foothill Capital Corp.
Bank Hapoalim B.M.
Davis, Johnson, Mogul &
FNRS Financial Corporation
Bank of America
CInc.
tto
Hambrecht & Quist
Bank of China
one &Belding
Footee,, Cone
Harbor Employees Federal
Bank of New Zealand
Grey Advertising
Credit Union (Harbor
Banque Franciase du
Malone Advertising
General Hospital)
Commerce Exterier
— McCann Erickson
Heller Financial, Inc.
California Federal Bank
N.W. Ayer
Huntington Advisors
California Korea Bank
Omnicom Group
Kleinwort Benson
California Pacific National
—
Parker Mulcahy & Assoc.
Chuo Trust Banking Co. Ltd.
Resources Trust Company
Commerce National Bank
ARCHITECTURE/DESIGN
Trust Company of The West
Commercial Bank Korea, Ltd.
CRS Sirrine
United Resources
Community Bank
_
Daniel L. Dworsky, FAIA and
Yaeger Capital Markets
Coolzone
Associates, Inc.
Countrywide Credit Industries
Gensler & Associates
—
INDUSTRIAL
Credit Suisse
Gin Wong Associates
Avery Dennison
Daiwa Bank, The
HNTB
Exxon Company, USA
Federal Deposit Insurance
Kaplan McLauglin Diaz
—
Fluor Corporation
Corporation
Liminality
Hershey Oil Company
Federal National Mortgage
Richard Magee & Associates
PertamAssociation
na
Tetra Design, Inc.
Unocal
U
Unocal
First Boston Corporation
— Westfall Interior Systems
First Interstate Bancorp
Witco
Witco Corporation
First Interstate Bank of
ASSOCIATIONS
California
_
Actor's Fund of America
Fuji Bank, Limited, The
American Cancer Society
Glendale Federal Bank
American Heart Association
Griffin Financial
—
Hanil Bank
PARTIAL CLIENT LIST
Hokkaido Takushoku Bank,
Ltd.
Home Federal Savings &
Loan
Home Savings of America
Hong Kong & Shanghai
Banking Corporation
Imperial Thrift & Loan
Association
Imperial Premium Finance
Independence Bank
Industrial Bank of Japan
Kerr Group, Inc.
Korea Exchange Bank
Kyowa Bank of California, The
Liberty National Bank
Long Beach Savings and
Loan
Long Term Credit Bank of
Japan
Metrobank
Mitsubishi Bank of California,
Mitsubishi Trust and Banking
Corporation
Mitsui Manufacturers Bank of
California
National Australia Bank
Nippon Credit Bank of Japan,
Palm Desert National Bank
Scandinavian Bank Group
Security Pacific National Bank
(Bank of America)
Shizuoka Bank
Sumitomo Bank of California
Sumitomo Corporation
TCW Realty Advisors
Taiyo Kobe Bank
Tokai Bank of California
Trust Company of the West
United Savings Bank
Union Bank of Switzerland
Union Federal Bank
Wells Fargo Bank
World Savings and Loan
INSURANCE/HEALTHCARE
Adams Clay Insurance
Brokers
Alta Health Strategies, Inc.
Airport Healthcare Medical
Group
American Benefit Plan
Administrators
BPS Healthcare
California Medical Review
Candland, Kindschi &
Associates
Chicago Title Insurance
Continental Land Title Co.
Crum & Forster
Crump, Kinder, Laucci
Farmers Insurance Company
Fireman's Fund
Fort Dearborn Life Insurance
Guaranty National Insurance
Companies
Great American Insurance
Hayward, Mason & Rolapp
Health Net.
Industrial Indemnity Company
Industrial Underwriters Inc.
John Hancock Mutual Life
Insurance
Kaiser Permanente
LA Insurance Broker
Mercury Casualty Insurance
Company
Molina Medical Centers
National American Life
Insurance
National General Insurance
Company
Nissan Fire and Marine
Insurance Co.
Orion Medical Sciences
Institute
Pacific Rim Assurance
Company
Phoenix Home Life
Prudential Insurance
Company
Republic Indemnity Insurance
Royal Insurance
SunAmerica
Sun Life Insurance Company
of America
Surety Company of the Pacific
TMIC Insurance Company
Ticor Title Insurance Group
Transamerica Insurance
Travelers Insurance
Twentieth Century Insurance
Company
Underwriters Reinsurance
Company
Wellington Ross Insurance
Services
Worldwide Facilities
Yasuda Fire and Marine
LEGAL
Allen, Matkins, Leck, Gamble,
& Mallory
A.S. Golbert & Associates
Barger & Wolen
Belin & Rawlings
Bollington, Stiltz, Bloesser &
Curry
Bronson, Bronson &
McKinnon
Berke, Daley & Burford
Burke, Williams & Sorensen
Caldwell & Toms
Clinnin & Clinnin
Coudert Brothers
Dennis, Juarez, Reeser,
Shafer & Young
Engstrom, Lispcomb & Lack
Fragomen, Del Rey &
Bernsen
Geragos & Geragos
Gibson, Dunn & Crutcher
Goldman & Kagon
Graiwer & Goldberg
Grogin, Samaha & Stulberg
Hagenbaugh & Murphy
Halstead, Baker & Olson
Hart & Watters
Heller & Owen
Hillsinger & Costanzo
Heller & Owen
Hillsinger & Constanzo
Neil Howard & Associates
(bold & Anderson
Ivanjack & Lambirth
Jeffer, Mangels, Butler &
Marmaro
PARTIAL CLIENT LIST
Jue & Wong
Stevens, Berg, Lasater,
California Pizza Kitchen
— Kadison, Pfaelzer, Woodard,
Schulman & Rogers
Cast Management
Quinn & Rossi
Stone & Dolginer
Consultants
Kagel & Steiner
Straw & Gilmartin
Centennial Civil Engineers
— Kirtland & Packard
Stroock & Stroock & Lavan
Century Parking, Inc.
Knapp, Marsh, Jones & Doran
Stutman, Treister & Glatt
Charles Bradley Professionals
Kroll & Tract
Tharpe & Howell
DuCharme, McMillen &
— Kutak, Rock & Huie
Thorpe, Sullivan, Workman &
Associates, Inc.
Law -in -Motion
Thorpe
Dun and Bradstreet
Lawler, Felix & Hall
Tuttle & Taylor
EOS Technologies
— Lillick & McHose
Valensi, Rose & Magaram
Executrain
Margolis, Ryan, Burrill, &
Weissburg & Aronson
Fashion Institute of Design
Besser
Walleck, Shane, Stanard &
and Merchandising
— McKiernan, Gurrola, Moriwaki
Blender
Freeman Health Services
& Brady
White & Case
GTE California
Meadows, Smith, Lenker,
Wilner, Klein & Siegel
Georgette Klinger, Inc.
— Sterling & Davis
Hay Associates
Mudge, Rose, Guthrie,
REAL ESTATE
International Film Guarantors
Alexander & Ferdon
Benefit Land Title
International Payment
— Murphy, Schrenger, Weiss &
Continental Land &Title
Systems
Associates
Gateway Title
Itochu International
Nelson, Seligmann & Wright
Independent National
Japan Leasing
Nilsson, Robbins, Dal arn,
g
Mortgage Corporation
Japan Life International
Carson & Wurst
Kaufman & Broad
Corporation
Nishiyama, Mukai, Leewong,
Leisure Technology, Inc.
Japan Travel Bureau
Evans, Saldin &Friedberg
Mortgage Corporation
International
_
Nossaman, Guthner, Knox &
Orange Coast Title
LEK/Alcar Consulting
Elliot
Pacific Office Centers
L.R. Linn &Associates
Ochoa & Sillas
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Progressive Title
Marshall and Stevens, Inc.
Petillon & Davidoff
Property Sciences Group
Metropolitan Talent Agency
Pettit & Martin
Ryland Homes
Mercatus Group
Poindexter-Doutre
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Title Land Company
Mitsubishi International
Quinn, Kully and Morrow
United Title Company
Mobile Installations
Renton, Nichols & Brigham
Watson Land Company
Morrison Knudsen Co.
Richards, Watson & Gershon
—
Westfield Holdings
Nabisco
Rose, Klein & Marias
Nichimen America, Inc.
Rosenfeld, Lindsey & Wolff
Nissho Iwai American
Rosenfeld, Meyer & Susman
SERVICE
Corporation
— Ross, Ross & Dyer
A.C. Neilsen
Okura & Company
Sacks & Zweig
American Benefit Plan
Orient U.S. Leasing
Saltzburg, Ray & Bergman
Administrators
Orion Medical Sciences
— Sheldon & Mak
American Messengers
Institute
Sheppard, Mullin, Richter &
International
Pacific Clinics
Hampton
Arthur Consulting Group
Pacific Creative Services, Inc.
— Sherman & Sterling
Arthur D. Little Valuation, Inc.
Pacific Fuel Trading Corp.
Shield & Smith
Avionet USA, LTD.
Reed Travel Group
Silverberg, Katz, Thompson &
Benefit Systems, Inc.
Rich Entertainment
— Braun
Booz, Allen & Hamilton
Sawyer, Ferguson & Walker
Stanard, Blender & Schwartz
Business Telemanagement
Scandinavia Trading
PARTIAL CLIENT LIST
Sigoloff & Associates, Inc.
Smith, Fause & Associates
Source Services Corporation
Statistical Sciences, Inc.
Taco Bell
Technical Connections
T.H. Export/Import
Thrifty Corporation
Trans Union System
Corporation
Transport Employees
Benefits, Inc.
W.C. Service, Inc.
TECHNOLOGY
Cambridge Technology
Partners
Data General Corporation
Dun & Bradstreet Software
CSC / Index
Falcon Cable Systems
General Telephone (GTE)
Kerr Glass
K.T.I. Corporation
Lincom Corporation
Mason Electric
M.I.S.I. Ltd.
Newport Corporation
NTT America
Panavision International L.P.
Paradigm Systems
Peter Norton Computing, Inc.
Pharmacia Intermedics
Opthalmics
R.J.S. Corporation
TRANSPORTATION
Aero California
Aeroflot Russian International
Airlines
Air New Zealand, Ltd.
Barber Wilhemsen Agencies
Direct Travel
Greyhawk Systems, Inc.
Itochu Aviation, Inc.
JALPAK
Japan Air Lines Limited
Jetour USA Inc.
Lilly Steamship Agency
Merit Steamship
Agency/Japan Line
National Space Development
Agency of Japan
Nippon Travel Agency Pacific
NTK Aviation America, Inc.
Pacific Liner Agency
Pony Travel
Sumitrans Corporation
Trans America Steamship
Agency
Varig Airlines
Zim Container Services
WKINNEY TRAVERS REFERENCE LIST
• Award Packaging
Mr. AI Espinosa
President
(213) 727-1200
• Christie Parker & Hale
Mr. Rod Dorman
Partner
(818) 795-5843
• Davidson Group
Mr. Bob Davidson
Chief Executive Officer
(310) 540-2740
Mr. Mark Herron
President
(310) 540-2740 x 102
• U.S. Freightways / Interamerican
Mr. Larry Pittman
_ President
(909) 591-4949
• Molina Medical Centers
Mr. John Molina
Executive Vice -President
Mr. Joe Heinz
Vice -President x 1121
(562) 435-3666
James Travers
Travers Realty
Los Angeles
Mr. Travers
was one of the
pioneers in
exclusive ten-
antrepresenta-
tion in South-
ern California
17 years ago,
and his firni—
recently
selected as the Oncor Inter-
national affiliate in Greater Los
Angeles —is now one of the area's
foremost office/industrial realty
organizations in this specialty. He
etuTently oversees the activities of
22 associate brokers operating at
three primary locations.
Prior to founding his company,
he was a tenant broker xith Milton
Meyer Co. focusing on tenant -
based negotiations, and earlier
began his career with the Edward
S. Gordon Co. in New York. A
graduate of the University of
Cincinnati with a B.S. degree in
political science, he was named
Los Angeles' top tenant represen-
tative in 1995 by die Los Angeles
Business Journal, which the year
before had voted him one of the
area's 10 most influential people
in conunercial real estate.
In July of last year, Mr. Travers
negotiated for Panavision Inc. in
its 16-year lease for 152,454 sq.
ft. at an ruridentifred location. The
$20 million deal resulted in a
rental rate approximately 25%
below the "above -market" rate
that the previous user was paying.
The new tenant, which had been
housing its manufacturing, rental
and administrative operations in
multiple locations in the San
Fernando Valley, north of Los
Angeles, will now have all these
operations under one roof.
1995 TRANSACTIONS
Total Deals: 64 leases
Aggregate Value: $211 million
Total Space: 1.5 million sq. ft.
46 ■ REAL ESTATE FORUM w JANUARY 1996
Travers Relishes Confrontation Role as Tenant Strong Man
rokers are supposed to adhere to
the unspoken principle that if
they drive for deals too tough
today, their clients of tomorrow will
suffer at the hand of the landlord when
the market turns. However, Jim
Travers never met a building owner
that refused to go toe -to -toe with a
cement contractor over their price.
That is why Travers, the 45 year -old
founder, president and CEO of Travers
Realty in Los Angeles, relishes his rep-
utation as a negotiating expert that
tends to beat up landlords.
"I like confrontations when I have a
strong client behind us," Travers said.
1 understand construction costs, enti-
tlements and other details that other
brokers don't. I know the costs for
developers. We do a lot of analysis. I
like to make a sharp deal.
"When a landlord buys steel and signs
contracts, they are very tough and sharp,
so why shouldn't we be?" he stated.
"When we say we deliver, we deliver."
Travers is so confident of his negoti-
ating ability that he has turned around
his perception of what the market
should accept when he's at the deal
table. "We're not market -driven so we
want to make sure the market meets
the tenant. We don't tell them what the
market wants; they tell us what they
want to pay and we'll meet it."
Travers founded his firm as its sole
broker in 1978, based on what he saw
as a needed service in commercial real
estate: tenant representation. Although
he said there are disputes as to who
actually started the tenant rep business
in the West, he claims it usually comes
down to himself and John Cushman.
Travers, who grew up in New York,
went to New York University's law
school and then went into real estate
because "it was an opportunity that
came up," he said. He started at Douglas
Elliman & Co. in 1970 as a broker and
two years later moved to Edward S. Gor-
don Co. where he stayed until 1974. He
left for Los Angeles and landed a job at
Milton Meyer Co., representing 5900
Wilshire Boulevard. That is when lie saw
the opportunity for a tenant rep -only
firm in the city.
He will not
handle deals for, -
landlords —which
helps maintain
integrity with his �
clients, he said
and in an age of�.�'
broadbased ser-
vice firms, his 20
brokers have con-
sistently grabbed
some of the
West's top deals.
Over the past 15 years, Travers Real-
ty has negotiated more than 8 million
square feet of space requirements with
1992 being the firm's best year yet. The
brokerage represented tenants in about
1 million square feet worth of transac-
tions last year and opened its second
office, in Newport Beach, Calif'.
But ask Travers how many deals he
personally closed last year and he can
not give an answer. "My whole person-
ality is not geared toward volume. 1 just
make sure the deals are right," he said.
One of Travers' "right" deals is the.
ongoing 412,000-square-foot headquar-
ters assignment for 20th Century Insur-
ance Co. in Woodland Hills, Calif.
Travers is also handling 230,000 square
feet worth of other deals for the firm,
ranging from 1,000-square-foot drive-in
claims centers to regional offices.
Among his firm's deals last year,
Travers closed on a 300,000-square-
foot, 42-acre headquarters deal in Simi
Valley, Calif., for Countrywide Credit
Industries. The firm is one of the top
loan originators in the West, he said,
facilitating the need for new space.
"We moved Countrywide into Pasade-
na eight years ago into about 80,000
square feet," he
said. `Now, they
are in 200,000
When a land- feet. We wanted
lord buys steel to expand into
and signs con- either a new con-
tracts, they are porate headquar-
very tough and ters or move into
sharp, so why an additional
shouldn't we operations
facili—ty. We wanted to
'Travers Realty
president & CEO stay in Pasadena
Jim Travers. but the cost of
space was going
to be very expensive."
Then Travers looked west. "We went
to Simi Valley and saw the property and
it was at such a good price. We bought
it in 30 days," he said. "The challenge
on that transaction was that we were
leasing new space every week but want-
ed to do away with that. We wanted to
go somewhere to meet our future needs.
We will build on the land as needed to
have a corporate services campus."
Travers also set a 195,000-square-foot
office deal for Health Net Corp. in
Woodland Hills plus other national
requirements, 85,000 square feet of
space for Pacific Rim Assurance Co. in
Encino, Calif'., and 65,000 square feet
for law firm Stradling, Yocca, Carlson
& Rauth in Irvine, Calif. a
-Ken Hunter. S'eiiior Editor
Lehman Debt 'Firsts' Meld Bagger Equity Deals
Mikulich Hopes to Leverage MPS into Broader REIT Play
By Doug Doiwky the mid-1980s.—decisions that still pinch
look at our accord and our real estate
Associate Editor profits and lead to speculation over the
capabilities, you see lot of us being on
New York --From his seat on Shear- possibility of the investment bank being
the cutting edge of the innovations
son Lehman Brothers' eight -member dumped by its likewise troubled parent,
going on in the business."
investment committee, managing direc- American Cypress Co.
Innovator. Creator. Tinkerer. All.
for Ray Mikulich has a bird's-eye view Yet. as head of Lehman Brothers'
words that apply to Lehman Brothers'
of a heap of lousy" real estatr deci- real estate investment banking group,
blossoming real estate program which in
sion: made by the firm ; former brass u1 Mikulich has another view few ever see:
a little over two years is now trying to
One in which a combined
threaten the likes of Goldman, Sachs,
10•member real estate and
Merrill Lynch and Morgan Stanley, the
Without any fanfare; mortgage effort breaks
recognized "Big Three" in real estate
but mith plenty of new ground in commercial
finance and advisory work. Lehman is
sec-uritrzation, notching
iiilovatlon, "Firsts,"
one.of the few. groups aggressively look-
industry and
ing to expand operations (particularly, its
- ,Mikiilich hTas;=beenassisting in the recapital-
underwriting of real estate investment
nuTtLlTing Lehmann tzation of mday's real
trusts) as well as strategically add staff.
BTOti}1e�5' Te8l estate estate market.
"Lehman
Puffing nut his chest, Mikulich
Brothers is
boasted: 'We're the only growing mort-
program into,a top very well-known, but our
gage and teal estate group on The
Wall StreetCon- zeal estate and mortgage
Street." Other shops re either happy
tende>< effort is not," lamented
with their size or stumbling. In fact, two
Mikulich. "But when you
(Continued on page 70)
Ron Ravevich Jeff Toin
Toga Rolls Out
Pru Leasing Arm;
Targets 40 MSF
By End of 1994
A,i' Ken. Hunter
Sentiar Editor
Newark, NJ-- inter more than a
year of quietly testing the waters: The
Prudential Realty Group (PRG) has
formally launched an in -horse unit to
handle lea •uag for its office and indus-
trial projects around the country.
Premiss, Marketing Services
("Marketing") will operate as a divi-
sion of Premisys Real Estate Services
("Premisys"), the property manage-
n1Pnt subsidiary of PRG Premisys
it r if wr crCatc.d four years ago to
ar he il).t;W-LiTe giant better con-
t I rt building opwations at PRG's
t, u; r rti ::. Today, the Premisys port-
fnh,. whirr, will 1.1611 he rn,rsewl by
�I
MARCH 10,1993
jEdward Uarey ' kelvin Davis
`New' Investors
Dworman, Rowe:
Tale Aim for
Workout Assets
By lien Bunter
Senior Editor
New York Traditional investors,
the insurance companies and pension
I funds, have surrendered the buyers'
market, instead concentrating on
their internal struggles over how
much new money should go into real
estate and whether cash reserve reg-
ulations are being met.
For precision buyers --those that
seriously study their markets and
will produce the cash up from -
these are the glory dnvs and a new
crop of million;dres is being made. i
"The buyers are out Finding the
guys ,in trouble where a bank is
involved," said Ross Dworman, pre.-
ident of RD Capital here. "If you
can ;it clown with them in a three-
way negotiation, put up some work-
ing capital and work our a deal
with the owner, you can have the
owner stay in for a carried interest.
"In some cases the owner is in
such financial trouble, lie doesn't
care about the percentage and will
get what we call a 'nuisance fee,"'
Dworman continued. The fee is
(Confined an page..10)
.:
t
swing from a
t I
,- • '
With'the
market where devel-
r
opers and their egos
' =
rule to a tenant: and investor-
�.
.4EL
driven arena, commercial. bro-
�
kers have hail to do some rapid
adapting. It is undeniably more elo
Stan Jones Mark Elliott
difficult today to land deals
�®
Marty Turehin ' Brendan Lynch
than it was five years ago, but
the top players in the industry
know how to get the job done.
.
Turn to pages 46 through 52 for
,
CPN's annual profile of the
-
hottest brokers, those who are
.e-^•':
completing the most creative
P
office, industrial, retail, apart -
Carl Peak Lori Brown
ment and hotel transactions.
Jiin Travers Elysia Holt
A MILLER FREEMAN, INC. PUBLICATION - 1515 Broadway. New York. NY 10036 - 212-869-1300 - U.5. Subscri;sl,:Ir ;..T? -Vn pr:, year. Single copies. $7.25
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RESOLUTION NO. RA-134
A RESOLUTION OF THE BOARD OF DIRECTORS OF THE
REDEVELOPMENT AGENCY OF THE CITY OF VERNON
APPROVING AND AUTHORIZING THE EXECUTION OF
AMENDMENT NO. ONE TO THE CONFIDENTIAL AGREEMENT
FOR REAL ESTATE CONSULTING AND REPRESENTATION
SERVICES BY AND AMONG THE CITY OF VERNON, THE
REDEVELOPMENT AGENCY OF THE CITY OF VERNON AND
MCKINNEY TRAVERS • ONCOR INTERNATIONAL
WHEREAS, Resolution No. RA-103 was adopted by the
Redevelopment Agency of the City of Vernon ("Agency") on August 5,
1997, approving and authorizing the execution of a Confidential
Agreement for Real Estate Consulting and Representation Services
("Agreement") by and among the City of Vernon ("Vernon"), the
Agency and McKinney Travers • ONCO International ("Consultant");
and
WHEREAS, the Agreement provides for an expiration date of
August 5, 1998; and
WHEREAS, Agency and Consultant desire to extend the term
of the Agreement through and including December 31, 1998.
NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF DIRECTORS
OF THE REDEVELOPMENT AGENCY OF THE CITY OF VERNON AS FOLLOWS:
SECTION 1: The Agency hereby finds and determines that
the recitals contained hereinabove are true and correct.
SECTION 2: The Agency hereby approves Amendment No. One
to the Confidential Agreement for Real Estate Consulting and
Representation Services, a copy.of which has been presented to the
Agency concurrently with this resolution, and the Agency hereby
orders said Amendment to be received and filed by the Secretary.
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SECTION 3: The Agency hereby authorizes the Chairman and
the Secretary to execute said Amendment for, and on behalf of, the
Agency of the City of Vernon.
SECTION 4: The Secretary of the Agency shall certify to
the passage of this resolution, and thereupon and thereafter the
same shall be in full force and effect.
;APPROVED AND ADOPTED this 8th day of September, 1998.
EONIS C. MALB G, Chairman
ATTEST•
G/
BRUCE V. MALKENHORST, Secretary
WE
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STATE OF CALIFORNIA )
) ss
COUNTY OF LOS ANGELES )
I, BRUCE V. MALKENHORST, Secretary of the Redevelopment
Agency of the City of Vernon,,,do hereby certify that the foregoing
Resolution, being Resolution No. RA-134, was duly adopted by the
Board of Directors of the Redevelopment Agency of the City of
Vernon (hereinafter "Agency") at an adjourned regular meeting of
the Agency duly held on Tuesday, September 8, 1998, and thereafter
was duly signed by the Chairman of the Agency of the City of
Vernon.
(SEAL)
v
BRUCE V. MALKENHORST, Secretary
-3-