MURIEL BOWSER
MAYOR
August 17, 2022
The Honorable Phil Mendelson
Chairman
Council of the District of Columbia
John A. Wilson Building
1350 Pennsylvania Avenue, NW, Suite 504
Washington, DC 20004
Dear Chairman Mendelson:
Pursuant to section 451 of the District of Columbia Home Rule Act (D.C. Official Code 1-
204.51), enclosed for consideration and approval by the Council of the District of Columbia is an
in-lease agreement with Unizo Real Estate DC Five, LLC for 14,620 square feet of office space
located at 1030 15th Street NW. The leased premises will be occupied by the Board of Ethics
and Government Accountability, the Office of Open Government, and the Office of Government
Ethics.
If you have any questions regarding this contract, please contact Keith A. Anderson, Director,
Department of General Services, at (202) 727-2800.
I look forward to the Councils favorable consideration of this contract.
Sincerely,
Muriel Bowser
GOVERNMENT OF THE DISTRICT OF COLUMBIA
DEPARTMENT OF GENERAL SERVICES
COUNCIL REAL ESTATE CONTRACT SUMMARY
July 28, 2022
Please note that any capitalized term used but not defined in this Summary shall have the
meaning given to such term in the proposed real estate contract.
1. The name of the proposed lessor, lessee, grantor or other party to the proposed real
estate contract, the type of real estate contract, the source selection method, the
primary term of the real estate contract (if applicable), and the consideration to be paid
by the District (for leases, the total annual rent for the first year and the fiscal years set
forth in the Funding Certification):
Contract Party Name: Unizo Real Estate DC Five, LLC, a Delaware
limited liability company
Type of Real Estate Contract: In-Lease Agreement (District is tenant)
Location of Real Property: 1030 15th Street, NW
Source Selection Method: Competitive
Primary Term (if applicable): 11 years and 4 months
Consideration to be paid by District:
- First Lease Year Annual Rental: $789,480.00
- Certificate of Funding Amounts:
Fiscal Year 2022: $0
Fiscal Year 2023: $383,333.33
2. If the real estate contract is a lease, a breakdown of the Annual Rental for the first
Lease Year set forth above, the scheduled escalations thereof and known first Lease
Year Additional Rent obligations (e.g., parking and supplemental HVAC costs):
Components of $/RSF Total Amount for Annual Escalations after First
Annual Rental First Lease Year Lease Year
Net Rental $17.95 $262,429.00 2.5%
Initial Operating $10.26 $150,001.20 CPI-based
Costs
Initial Real $12.11 $177,048.20 Based on actual increases in Real
Estate Taxes Estate Taxes
_________________________________________________________________________________________________
2000 14th Street, NW, 8th Floor, Washington, DC 20009 Telephone (202) 727-2800 Fax (202) 727-7283
1
Tenant $13.68 $200,001.60 N/A
Improvements
Allowance
Amortization
Total Annual $54.00 $789,480.00 N/A
Rental
Known Additional Rent Obligations for First Lease Year
Parking $270 monthly/space $3,240.00 total 2.5 % annual escalation
Overtime HVAC $80/hour Total for first Lease 2.5% annual escalation
Costs Year will depend
on usage
3. If the real estate contract is a lease, a description of any options to renew the primary
lease term set forth above, the contract amount for the primary lease term and each
option period (and an explanation of any difference), and a description of any options to
purchase the real property:
The Lease includes one option for the District to extend the primary term by 5 Lease Years.
The Annual Rental during the primary lease term is described above. The Annual Rental for
the Extension Term cannot be determined at this time but is not anticipated to be equal to the
Annual Rental during the primary term. This is primarily due to the fact that the Net Rental
rate for the first Lease Year of the Extension Term shall be equal to the then fair market
rental rate for comparable properties in the District of Columbia, as determined by Landlord
and the District. In addition to the payment of the new Net Rental rate applicable to the first
Lease Year of the Extension Term, the District shall continue to pay for escalations in Net
Rental, Operating Costs and Real Estate Taxes during the Extension Term, as such
escalations are described in Section 2 above. The Lease does not include any option to
purchase the real property.
4. A description of the real property to be acquired, developed or leased, including any
applicable improvements:
Street Address: 1030 15th Street, NW
Square/Lot Number: 0198 / 0845
Total RSF of Building: 332,022 RSF
Total RSF of Premises: 14,620 RSF
Description of Improvements: The existing building is a 332,022 RSF multi-tenant office
building located on approximately 18,646 square feet of land. Under the proposed Lease, the
Districts Board of Ethics and Government Accountability (BEGA) will occupy 14,620
RSF of office space. The District will also have the use of 1 unreserved parking space for a
government fleet vehicle (12 additional unreserved parking spaces will be made available for
employee use, at no cost or expense to the District).
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5. A description of the Districts specific real property need associated with the proposed
real estate contract and the selection process, including the number of offerors, the
evaluation criteria, and the evaluation results, including price, technical or quality, and
past performance components:
A Request for Space (RFS) was issued by the Department of General Services (DGS) on
August 9, 2021 to building owners in all submarkets of the District of Columbia. BEGA
required a location accessible by Metro as District employees receive training at BEGAs
office. DGS received twenty-one (21) proposals in response to the RFS. The offers were
evaluated by a panel comprised of DGS personnel and members of Savills, Inc and its
subcontractor Civitas Commercial Real Estate (contractors and real estate consultants to
DGS). The evaluation panel modeled the financial terms proposed by each of the offerors
and compared the qualitative aspects of each of the proposed options based upon the criteria
set forth in the RFS. The evaluation panel created a short list of four (4) properties based on
the results of the financial and qualitative analysis, which was scored using weighted criteria
specifically designed for this requirement. The short list properties were toured by senior
staff of BEGA and the evaluation panel. Based on the tours and presentations of the four
options, the District selected the 1030 15th Street, NW option, subject to further due
diligence and negotiation of a Letter of Intent. The final decision to select 1030 15th Street,
NW was made once the District was satisfied with the economic and legal terms negotiated
in the LOI, and the projected delivery dates for the premises.
The proposed Lease provides BEGA with the ability to:
o improve workplace efficiencies and storage needs;
o enhance hearing and training rooms;
o improve public interface within the premises; and
o conform its space to the Districts current workplace standards.
6. The background and qualifications of the proposed contract party, including its
organization, financial stability, personnel, and performance on past or current real
estate contracts with requirements similar to those of the proposed contract:
Unizo Real Estate DC Five LLC, is a Delaware limited liability company and the owner of
1030 15th Street, NW. Landlord is not a prior or current landlord to the District. Landlords
parent company, Unizo Holdings Company, Limited, manages operations for its subsidiaries
consisting of 182 employees and specializes in leasing Class A office buildings and other
types of properties.
7. Expected outcomes of the proposed real estate contract:
The execution of the proposed real estate contract is expected to result in the occupancy by
BEGA of the subject space for 11 Lease Years and 4 months, and possibly an additional 5
years pursuant to the extension option described above.
8. A statement that suitable space owned by the District is not available or cannot be
reasonably renovated or altered:
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Based upon an evaluation of space owned by the District, there is no suitable space owned by
the District, either as-is or which can reasonably be renovated or altered, which would meet
the needs of BEGA under the proposed real estate contract.
9. ANC notice of the proposed real estate contract:
DGS provided written notice, dated April 22, 2022, to ANC 2B and Councilmember Brooke
Pinto regarding the proposed real estate contract, as required by applicable law. The notice
provided the ANC with an opportunity to provide written recommendations regarding the
proposed contract within thirty (30) business days. Pursuant to applicable law, DGS would
then give great weight to the issues and concerns raised in any ANC recommendations and
provide a written response to the ANC addressing those issues and concerns. DGS did not
receive any written recommendations regarding the proposed contract from the ANC.
10. A certification that the proposed real estate contract is within the appropriated budget
authority for the agency for the fiscal year and is consistent with the financial plan and
budget adopted in accordance with 47-392.01 and 47-392.02:
The Office of the Chief Financial Officer has certified the availability of funds for the
proposed real estate contract. Please see the attached Funding Certification.
11. A certification that the proposed real estate contract is legally sufficient:
The Office of the General Counsel for the Department of General Services has certified that
the proposed real estate contract is legally sufficient. Please see the attached Legal
Sufficiency Certification.
12. A certification as to whether the proposed contract party has any currently pending
legal claims against the District:
According to the Districts Office of the Attorney General and based upon a certification
from Landlord, Landlord does not have any legal claims currently pending against the
District.
13. A certification that the Citywide Clean Hands database indicates that the proposed
contract party is current with its District taxes:
The proposed contract party is current with its District of Columbia taxes. Please see the
attached Citywide Clean Hands certificate.
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14. A certification from the proposed contract party that it is current with its federal taxes,
or has worked out and is current with a payment schedule approved by the federal
government:
Based upon a certification from Landlord, Landlord is current with its federal taxes, or has
worked out and is current with a payment schedule approved by the federal government.
15. The status of the proposed contract party as a certified local, small, or disadvantaged
business enterprise, as defined in subchapter IX-A of Chapter 2 of title 2-218.01 et
seq.:
The proposed contract party is not a certified local, small, or disadvantaged business
enterprise.
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Government of the District of Columbia
Office of the Chief Financial Officer 1101 4th Street, SW
Office of Tax and Revenue Washington, DC 20024
Date of Notice: July 27, 2022 Notice Number: L0007893970
UNIZO HOLDINGS U.S., LLC FEIN: **-***0284
401 HACKENSACK AVE STE 1001 Case ID: 1247669
HACKENSACK NJ 07601-6442
CERTIFICATE OF CLEAN HANDS
As reported in the Clean Hands system, the above referenced individual/entity has no outstanding
CO
liability with the District of Columbia Office of Tax and Revenue or the Department of Employment
Services. As of the date above, the individual/entity has complied with DC Code 47-2862, therefore
this Certificate of Clean Hands is issued.
TITLE 47. TAXATION, LICENSING, PERMITS, ASSESSMENTS, AND FEES
CHAPTER 28 GENERAL LICENSE
SUBCHAPTER II. CLEAN HANDS BEFORE RECEIVING A LICENSE OR PERMIT
D.C. CODE 47-2862 (2006)
PY
47-2862 PROHIBITION AGAINST ISSUANCE OF LICENSE OR PERMIT
Authorized By Marc Aronin
Chief, Collection Division
To validate this certificate, please visit MyTax.DC.gov. On the MyTax DC homepage, click the
Validate a Certificate of Clean Hands hyperlink under the Clean Hands section.
1101 4th Street SW, Suite W270, Washington, DC 20024/Phone: (202) 724-5045/MyTax.DC.gov
GOVERNMENT OF THE DISTRICT OF COLUMBIA
OFFICE OF THE CHIEF FINANCIAL OFFICER
GOVERNMENT OPERATIONS CLUSTER
OFFICE OF FINANCE & RESOURCE MANAGEMENT
Antoinette Hudson Beckham Angelique Rice
Agency Fiscal Officer Associate Chief Financial Officer
Date: August 09, 2022
Agency Budget: Department of General Services (AM0)
Occupying Agency: Board of Ethics and Government Accountability (AG0)
Funds Needed: $0.00
Purpose: $0.00 Funds are needed in FY 2022 for a new lease for the Board of Ethics and
Government Accountability to be located at 1030 15th Street, NW, Washington,
DC. DC Board of Ethics and Government Accountability will lease 14,620 rentable
square feet. Funding for FY 2023 in the amount of $338,333.33 is included in the
FY 2023 Budget approved by the Council and signed by the Mayor.
Cost of Obligation FY 2022: $0.00
Cost of Obligation FY 2023: $338,333.33
Term: 11 Years 4 Months
Antoinette Hudson Beckham Date 08.09.2022
Cc: Angelique Rice, Associate Chief Financial Officer, GOC
441 4th Street, NW Suite 890 North - Washington, DC 20001
GOVERNMENT OF THE DISTRICT OF COLUMBIA
DEPARTMENT OF GENERAL SERVICES
Office of the General Counsel
MEMORANDUM
TO: Ronan Gulstone
Director, Office of Policy and Legislative Affairs
THROUGH: Xavier Beltran
General Counsel, Department of General Services
FROM: Kimberly Jones
Assistant General Counsel, Department of General Services
SUBJECT: Legal Sufficiency Certification for Proposed In-Lease Agreement by and
between the District and Unizo Real Estate DC Five, LLC for premises at
1030 15th Street, NW, Washington, DC (the Lease)
DATE: July 28, 2022
This is to certify that this Office has reviewed the above-referenced Lease and that we have found
it to be legally sufficient, subject to the submission of any required materials and Council approval.
If you have any questions, please do not hesitate to contact me at (202) 727-2800.
__________________________
Kimberly Jones
Assistant General Counsel, Department of General Services
________________________________________________________________________________________________
2000 14th Street, NW, 8th Floor, Washington, DC 20009 Telephone (202) 727-2800 Fax (202) 727-7283
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EXECUTION VERSION
D.C. DEPARTMENT OF GENERAL SERVICES
IN-LEASE AGREEMENT 1. LEASE NO. ____________
AWARD OF IN-LEASE (L-100)
2. BUILDING NAME AND ADDRESS (No., street, city, state, and zip code)
The Executive Building
1030 15th Street, NW
Washington, DC 20005
3. Your offer is hereby accepted. THIS AWARD CONSUMMATES THE LEASE WHICH CONSISTS OF THE FOLLOWING DOCUMENTS:
(a) this DC DGS Form L-100 (Award of In-Lease),
(b) DC DGS Form L-102 (Accepted Proposal to Lease Space),
(c) DC DGS Form L-105 (In-Lease Agreement Definitions and Standard
Clauses and Provisions),
(d) Exhibit A (Depiction of Premises),
(e) Exhibit B (Legal Description of Land),
(f) Exhibit C (Work Exhibit for Landlord Work and Tenant
Improvements),
(g) Exhibit D (Form of Declaration of Delivery),
(h) Exhibit E (Rent Schedule of Net Rental),
(i) Exhibit F (Form of SNDA),
(j) Exhibit G (Form of Tenant Estoppel Certificate),
(k) Exhibit H (Form of Declaration of Final Accounting),
(l) Exhibit I (Janitorial Specifications) and
(m) Exhibit J (Building Rules)
(collectively, this Lease).
In the event of conflict, the order of priority between the documents comprising this Lease shall be in
the order above, unless otherwise specifically set forth in this Lease.
4a. LANDLORD'S NOTICE AND PAYMENT ADDRESS:
Notice Address:
Unizo Real Estate DC Five, LLC
c/o Lincoln Property Company
1030 15th Street, NW, Suite 250
Washington, DC 20005
Attention: Property Manager
Email address: DKchao@LPC.com
Payment Address or Wire/EFT Instructions:
LPC Commercial Services Inc. AAF UNIZO Holdings US LLC
Bank of America
Bank Routing No. 051000017
Bank Account No.: 435 03404 2900
PAGE 1 OF 116
1030 15th Street, NW (as modified) DC DGS FORM L-100 (3/2018)
EXECUTION VERSION
4b. DISTRICT'S NOTICE ADDRESS:
Government of the District of Columbia
Department of General Services
2000 14th Street, N.W., 8th Floor
Washington, D.C. 20009
Attn: Director
Email address: keith.anderson@dc.gov
with a copy to:
Government of the District of Columbia
Department of General Services
2000 14th Street, N.W., 8th Floor
Washington, D.C. 20009
Attn: General Counsel