Real Estate Lease - Russell County

Agency: State Government of Virginia
State: Virginia
Type of Government: State & Local
NAICS Category:
  • 531120 - Lessors of Nonresidential Buildings (except Miniwarehouses)
  • 531390 - Other Activities Related to Real Estate
Posted Date: Feb 12, 2020
Due Date: Mar 6, 2020
Solicitation No: RFP TRANSACTION #2539-2
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RFP TRANSACTION #2539-2
  • Real Estate Lease - Russell County
  • Status: Open
  • Time Left:22 days
  • Closing: 3/6/20 4:00 PM
  • Issued: 1/24/20 11:05 AM
  • Last Amended: 2/12/20
  • Buyer:Deborah Wake
  • dwake@divaris.com
  • 804-225-4010

  • Issued By:Department of General Services
  • Type:Request for Proposals (RFP)
  • Category:Real Property
  • Work Location: Russell County
  • Web Address:
  • Pre-Bid Conference:
  • Open Responses:
  • Description:RFP | DOC | 4,750 SQ Office | Russell County, VA

Attachments
Attachment Size Description Posted On Type
DOC Russell RFP 2.12.20 Extension.docx (301.51 KB) Revised 02/12/20 Solicitation

Attachment Preview

Test Title

REQUEST FOR PROPOSAL

Commercial Space For Lease

TENANT: COMMONWEALTH OF VIRGINIA (“Commonwealth”),

DEPARTMENT OF GENERAL SERVICES (“DGS” or “Tenant”)

through its Bureau of Real Estate Services (“BRES”)

Commonwealth of Virginia, Department of Corrections (“DOC” or “Occupant”)

OCCUPANT:

TRANSACTION

NUMBER: 2539

ISSUE DATE: January 24, 2020

CONTACT: David Richards

Richards Commercial Properties of VA, LLC

a partner Broker for Divaris Real Estate, Inc. (“Divaris”)

129 E. Main Street

Chilhowie, VA 24319

Phone: 276-780-5164

Email: david@richardscommercial.com

The Tenant seeks to lease commercial space in Russell County, VA for occupancy by DOC. Information about the Occupant can be found at https://vadoc.virginia.gov .

The Occupant is seeking office, flex or retail space for a Probation and Parole (“P&P”) office.

• P&P offices provide for the supervision and transition of state responsible offenders.

• P&P offices preferably will not be located next to a church, school, day-care facility, public park, or other areas frequented by children.

• DOC is obligated to give a 90-day prior notice to the chairperson of the board of supervisors or mayor of the jurisdiction in which the proposed leased property is located and to the adjacent property owners of the proposed leased property prior to executing a lease for a P&P office.  As a result, the local governing body may request that DOC hold a public hearing in its jurisdiction.  Consequently, upon or after selection of the property submitted hereunder for further consideration as a leased property for a P&P office, DOC will give the required notice prior to the Tenant entering into a lease for the proposed leased property.

Evaluation of proposals will be based on lease costs, suitability of the location and proposed premises to meet the Occupant’s operational needs and other quality factors.

If you are interested in offering the commercial space as described in this document, please provide a written response addressing the information contained in each of the “Response” boxes in this document, complete the Property Data Sheet as attached as Exhibit B and submit your signed proposal to the Contact identified above no later than:

• 4:00 PM Eastern Standard Time;

• March 6, 2020 (REVISED)

Proposals received after the TIME AND date stated above will not be considered during the evaluation of this solicitation.

Proposals may be received via e-mail, fax or USPS Mail, courier or hand delivery and all proposals must be signed. Incomplete or unsigned responses may not be considered. All costs associated with the preparation and submission of a proposal and the burden to deliver the proposal by the deadline provided shall be on the Proposer.

This Request for Proposal is being disseminated by utilizing the DGS eVA website and/or through Divaris Real Estate Inc. (“Divaris”). Divaris is the Commonwealth’s contracted real estate broker for current real estate services, including with respect to the acquisition or lease of real property and the disposition of surplus real property.

If you are interested in keeping up to date with new Requests for Proposals disseminated by the Commonwealth, BRES utilizes the DGS eVA website as a source of automatic notification of new requests. To subscribe in eVA and receive updated information on new Requests please go to https://eva.virginia.gov/pages/eva-registration-buyer-vendor.htm and subscribe to the following commodity codes: 97145 (Office Space Rental or Lease), 97100 (Real Estate Property Rental or Lease) and 99884 (Sale of Surplus Real Estate).

Once signed up, eVA Subscribers will be able to:

• Receive real-time notifications.

• Subscribe / unsubscribe to receive a weekly e-mail of an eVA report in Excel format (The report will display a listing of open postings listed during the prior week).

Please note: BRES is using the DGS eVA website for the purpose of reporting open RFP ONLY.

real estate transactions are NOT subject to the Virginia Public Procurement Act or the DGS Division of Purchase and Supply Vendor’s Manual.

All costs associated with the preparation and submission of a response to this request for proposal are the sole responsibility of the party PRESENTING the information.

Proposals are subject to the provisions of the Virginia Freedom of Information Act, Code of Virginia Section 2.2-3700, et seq. Please contact Divaris Real Estate Inc. (“Divaris”) prior to submitting any information you seek to be withheld from disclosure on the grounds of confidentiality. Proposers will be advised if withholding such information on the grounds of confidentiality is legally permissible and under what conditions.

Questions about this Request for Proposal shall be directed to the Contact identified above.


Request for Proposal Guidelines:

1. Code of Virginia §2.2-1149 authorizes the Department of General Services to issue a request for proposals for the lease, purchase or any other means or use or occupancy of real property, as defined in the Code of Virginia §2.2-1147. The Virginia Public Procurement Act (VPPA) is set forth within §§2.2-4300 et seq. of the Code of Virginia. VPPA articulates Virginia’s public policy relating to the purchase of goods and services by public bodies and is not applicable to the acquisition or lease of real property.

2. Only DGS or Divaris, as agent on behalf of DGS, is authorized to negotiate the terms and conditions of a proposed lease agreement on behalf of the Commonwealth and the Occupant. The Proposer shall communicate directly with BRES and/or Divaris and shall not rely on communications with or information provided by the Occupant or any other source.

3. Tenant is credit-worthy and will not pay a security deposit.

4. Tenant will pay rent and additional charges required by the lease in arrears. In order for a landlord to do business with the Commonwealth and receive payment from the Commonwealth, they must be set up in the Commonwealth’s accounting system. To do so, the landlord must complete and return a Commonwealth of Virginia Substitute W-9 form which will be provided during lease negotiations.

5. Leasing is subject to approval by the Governor of Virginia and availability of funding appropriated by the General Assembly. Additionally, the Commonwealth reserves the right to reject any and all offers, to negotiate separately with competing proposers, and to cancel this solicitation at any time. If, in the opinion of the Commonwealth, lease negotiations with a selected proposer cannot be concluded in a timely manner, including following the selected proposer’s receipt of a draft lease agreement, the Commonwealth may, at its sole discretion, immediately discontinue negotiations.

6. Exhibit A provides certain disclosures related to leasing and doing business with the Commonwealth of Virginia.

7. A lease that may be considered a “capital lease” requires approval of the General Assembly and/or the Governor. Also, pursuant to §10.1-1188 of the Code of Virginia, a lease considered a “major state project” by the Department of Environmental Quality will require the preparation and submission of an Environmental Impact Report which requires approval thereof by the Governor. Additional information may be required by the Commonwealth under either of these circumstances.

8. Possession or carrying, whether open or concealed, of any firearm by any person is prohibited in State Office buildings, including leased premises. This prohibition does not apply to law enforcement officers, authorized security personnel, or military personnel, when such individuals are authorized to carry a firearm in accordance with their duties and when they are carrying the firearm within that authority.

Please provide a written proposal in the shaded fields within the “Response” boxes addressing the information requested and on the Property Data Sheet attached as Exhibit B. The Proposer may also provide separate documents to respond to or supplement the proposal response.

1. Preferred Location: The geographic location of the proposed space must be within zip code areas 24266, 24280 or 24225 in Russell County, VA, with preference for locations within the Town of Lebanon or in proximity thereto.

Response

Is the proposed space within this geographic location?

2. Space Requirement Type/Size: The Tenant has a need for approximately 4,750 usable square feet of office space. See Exhibit D for conceptual space program needs.

Response

Please complete Exhibit B – Property Data Sheet and provide a floor plan for the space, if available.

3. Base Rental Rate: The Commonwealth prefers the proposer to offer a flat, full service rental rate (excluding tenant improvement up-fit costs) for the lease term and any option terms.

Response

Proposed Annual Rental Rate:

4. Lease Term: Requested initial lease term: 60 months or 120 months.

Response

Proposed lease term:


5. Lease Commencement: Tenant prefers the space to have a certificate of occupancy and be ready for possession as soon as improvements can be economically completed.

Response

Estimated Possession Date:

Additional Information:


6. Options to Extend: Tenant requests two (2), five (5) year options to renew the lease upon six (6) months’ notice to landlord. Options shall be at ninety-five (95%) of the prevailing market rate for similar premises, considering allowances and other incentives, not to exceed 102% of the then current base rent. All options shall include a refurbishment allowance for at minimum new carpet/flooring and paint.

Response

Agree (Y /N)

Refurbishment Allowance Amount(s)

Alternate Proposal

7. Parking: Parking should be in close proximity to the leased premises and all costs associated with parking must be included in the rent. Tenant requires 20 parking spaces.

Response

Total number of parking spaces available:

Number of exclusive parking spaces provided for Tenant’s use:

Number of non-exclusive parking spaces would be allocated for Tenant’s use:

Location of Parking spaces:

Is parking included in the rental rate: (Y/N)

If the Tenant’s parking space needs exceed the number of parking spaces available, please propose how the total need would be accommodated

8. Signage: Specify interior and exterior signage rights available to Tenant, including building, monument, lobby, and suite signage.

Response

Sign Availability:


9. Technology and Tele-communications: Please provide information noting what internet services are available to the building / space in order for the Commonwealth to evaluate the capacity of the building to provide appropriate service.

Landlord shall provide Tenant and/or its telecommunications companies, the right of access to, from and within the building including pathway(s) to the premises for the installation and operation of Tenant’s telecommunications systems.

Tenant may request permission to place certain telecommunications equipment on the roof. Please indicate if this will be permissible and under what conditions.

Response

What organization(s) or companies provide internet service to the Premises and what level of service is available at the building?

Tenant shall have access to building and roof for installation/maintenance technology and telecommunications: Agree (Y/N):

10. Property Operating Expenses: For office spaces, a full service lease is preferred; however, if the proposer can demonstrate a potential cost savings to the Commonwealth by providing for a net lease, then the landlord should provide an itemized breakdown of estimated operating expenses and state how landlord proposes to manage operating expense charges to Tenant. In some instances, the Commonwealth may choose to use the state electric service contract provided the space is separately metered.

Response

Is this a proposal for a full service lease? (Y/N)

If the above response is ‘no’, mark which of the following operating costs are included within the base rent:

Property Taxes

Property Insurance

Electricity

Gas / Heating

Water / Sewer

HVAC Services / Maintenance / Repair

Premises Janitorial Service

Common Area Janitorial Services

Trash Collection

Landscaping

Snow Removal

For those operating expenses not included with the rent, please attach documentation of recent pass through costs thereof.


11. Janitorial Service: Tenant requests janitorial services to the Premises five (5) days per week. Please provide information with regard to janitorial services to the Premises.

Response

Agree (Y/N)

If available, include the building cleaning schedules and maintenance specifications below or reference attachments


12. Space Planning: The Landlord is willing, upon being notified that their proposal is a finalist, to pay in advance of final lease negotiation to have either the Landlord’s space planning contractor or to have the Commonwealth’s space planning contractor, develop a conceptual space layout, sometimes referred to as a "test fit" and one revision (if necessary) for the Occupant’s space needs set forth on Exhibit D, including adjacencies to be identified by the Occupant.


The plan will indicate all walls, doors, and workstation locations in addition to fixed spaces such as electrical panels, mechanical rooms and janitor closets. Spaces must be labeled with designated use. The date of the plan and an overall BOMA usable and rentable square footage number must be provided on the plan.


The Landlord must provide accurate as-built drawings to the space-planning contractor in an AutoCAD format, submitted electronically. If accurate as-builts are not available, the Landlord shall also bear the expense of having such plans developed and made available to the space-planning contractor.


If using the Commonwealth’s space planner, fees for the space layout, plus one revision, and square footage calculation are as follows:

*Set fee of $450.00 for prospective tenants up to 3,000USF
*$0.15 per USF for tenants from 3,001 USF to 10,000 USF

*$0.12 per USF for tenants 10,001 and above

Reimbursable expenses including the creation of ‘as-built’ drawings, travel, reproduction of drawings, courier, express mail, etc. shall be invoiced to the Landlord at cost. If as a result of the test fit or any other reason a lease is not executed, Landlord shall be fully responsible for the costs incurred without recourse against the Commonwealth.


Response

Agree (Y/N)


13. Tenant Improvements: Tenant requests that landlord contract for and construct all improvements and to provide the space in a turnkey condition. After an approved space plan, Tenant shall provide construction guidelines, general specifications and notes for a turnkey project. Typical finishes for improvements are attached as Exhibit E. Turnkey work must include:

• Construction documents and all planning A&E services

• Competitive bid of the improvement project

• Contract for and construction of the improvements

• Construction management of the improvements


Response

Describe the present condition of the space (warm lit shell, second-generation office etc.)

What amount of Tenant Improvement up-fit costs would be sufficient to build the proposed space in accordance with the guidelines set forth in Exhibit E?

At what rate will the proposed costs be amortized and paid as additional rent over the proposed lease term?

14. Furniture, Fixtures and Equipment: Upon selection as a finalist and after the development of the test-fit plan as described above, Tenant may further request that the landlord provide;

• Low-voltage data and telecommunications cabling

• Furniture, fixtures and equipment as required by space plan


Response

Will Landlord consider amortizing furniture, fixtures and equipment expenses as additional rent? (Y/N)

If so, at what rate will the proposed costs be amortized and paid as additional rent over the proposed lease term?

15. Access to Premises: Landlord agrees to provide Tenant with access to the Premises upon the commencement of any tenant improvements to perform its work including data and telecommunication cabling.


Response

Agree (Y / N)

Alternate Proposal:


16. Incentives: State the proposed rent abatement, moving allowance or other incentives and/or refurbishments offered to Tenant, including during the initial term and option terms.


Response

Rent Abatement

Moving Allowance

Other Incentives


17. Right of First Refusal: Tenant requests an on-going first right of refusal on contiguous available space on Tenant’s floors throughout the Initial Term and any renewals.


Response

Agree (Y /N)

18. Regulatory and Environmental Conditions: Please confirm the building and premises comply with applicable laws, ordinances, codes, and ADA requirements. In the lease, the Tenant will require the Landlord to warrant and represent that the building and premises are free of friable asbestos, other hazardous or toxic materials, mold, and EMF radiation.


Response

Does the building and premises comply with all applicable laws, ordinances, codes, and ADA requirements? (Y/N)

19. Other Location Features: Pursuant to Executive Order 19 (2011), DGS may give preference to facilities having the attributes below:

If the proposed space is located in a metropolitan area where public transit is available, is the space within a quarter mile of a bus, trolley, Metro, or commuter rail stop?


Response

Yes / No

Does the proposed facility meet the U.S. Green Building Council’s LEED rating system or the United States Environmental Protection Agency/Department of Energy’s “Energy Star” rating?


Response

Yes / No

Is the facility pedestrian and bicycle accessible (sidewalks, ramps, bike racks, etc.)


Response

Yes / No

20. Existing Commercial Leases: Please list any existing leases the landlord currently has with the Commonwealth. Include any properties under related ownership, such as LLCs with different location names.


Response

Other Leases and Locations

21. Deed of Lease Form: It is a requirement that a standard Commonwealth of Virginia Deed of Lease form be utilized for all Commonwealth lease transactions. A list of Prohibited Lease Terms is provided in Exhibit A to this RFP for review by all Proposers. A sample lease can be provided upon request. Any lease form is subject to review and revision on a continuing basis. Should Tenant and landlord reach agreeable terms, Tenant shall prepare the lease using the template form as a base for landlord’s review and signature; followed by Tenant’s approval process and signatures through the Governor’s Office. Substantive revisions to the template lease form may require additional legal review by the Commonwealth and may result in a delay of the lease approval process.


Response

Acknowledge (initial below, typed is acceptable)

22. Assignment and Sublease: Tenant shall have the right to sublet or assign all or part of the premises to any other state agency.


Response

Agree (Y/N)

23. Non-Disturbance: At Tenant’s option prior to the signing of any lease, Tenant may require Landlord to provide Tenant with a non-disturbance agreement acceptable to Tenant from each mortgage, lien or deed of trust holder then in existence, if any.


Response

Agree (Y/N)

24. Recording Memorandum of Lease: Tenant may require the recording of a fully executed memorandum of lease by landlord and Tenant in the City or County Circuit Court Clerk’s Office. The Memorandum of Deed of Lease is (i) exempt from recordation taxes pursuant to Code of Virginia §§58.1-811.A.3 and 58.1-811.E and (ii) the payment of Clerk’s fees pursuant to Code of Virginia §§ 17.1-266 and 17.1-279.E. Any recording costs incurred in connection with the recordation of the Memorandum of Deed of Lease shall be paid for by the Commonwealth of Virginia.


Response

Acknowledge (initial below, typed is acceptable)

25. Brokerage Disclosure Divaris and its partner broker, Richards Commercial Properties of VA, LLC, represent the Commonwealth of Virginia, its agencies and subdivisions as a Tenant representative in leasing transactions. As a licensed real estate broker, Divaris or its designated partner provides this disclosure that it may represent more than one party in the subject real estate transaction, specifically landlord and Tenant. If Divaris or its designated affiliate acts as a dual representative, it may not disclose to either party, or such party’s designated representative, any information that has been given to the dual representative by the other party within the confidence and trust of the brokerage relationship, except as otherwise required or permitted by applicable law to be disclosed. The undersigned do hereby acknowledge and consent to the disclosed potential dual representation by Divaris or its designated affiliate.

The parties each acknowledge and agree that Divaris Real Estate, Inc. and Richards Commercial Properties of VA, LLC are representing the Tenant. Divaris shall be paid four percent (4%) of the gross revenue of the lease over the initial term by the landlord, which shall be paid 50% at lease execution and 50% upon occupancy.


Response

Acknowledge brokerage disclosure (initial below, typed is acceptable)

Agree to commission structure (Y/N):


Proposal Submitted By:

Name

Company:

Phone:

E-Mail:

Signature:

Date:


EXHIBIT A - PROHIBITED LEASE TERMS

Due to the variety of specific Commonwealth laws and/or the doctrine of sovereign immunity, departments, agencies and institutions cannot agree to certain terms commonly found in real estate leases, agreements and contracts. The prohibited terms include:

1. Any express or implied waiver of the sovereign immunity of the , any department, agency or institution, or any of its or their officers, agents or employees.

2. Any agreement or promise to indemnify, defend or hold harmless any person or entity.

3. Any agreement to provide or maintain insurance or insurance coverage to or for the benefit of any person or entity.

4. Any agreement that provides for binding arbitration or other binding dispute resolution.

5. Any estoppel against the Commonwealth or a department, agency or institution, or any agreement which requires the execution of an estoppel certificate, or any provision that would prevent the Commonwealth from making claims or establishing any defense against claims.

6. Any agreement that constitutes a waiver of subrogation or waiver of subrogation rights.

7. Any agreement requiring or providing for the payment of any costs, penalties or liquidated damages.

8. Any agreement purporting to grant security interests in property of the Commonwealth of Virginia; and, any agreement providing default provisions that provide for or authorize (1) Landlord to use any self-help remedies, (2) the distress or seizure of property of the Tenant, or (3) the blocking of the right of Tenant’s access to and removal of property and records of the Tenant from the Leased Premises.

9. Any provision prohibiting collection of debt by the or any of its agencies under Virginia Code §58.1-520 et seq (Setoff Debt Collection Act

10. Any provision that seeks to over-ride, constrain, alter or amend the requirement for appropriation of funds to be paid by the Commonwealth of Virginia or any its agencies, departments or institutions.

11. Any provision that requires paying rent in advance

12. Any provision that makes the Commonwealth liable for actions of visitors or invitees.

13. Any provision that alters a requirement of law that is binding on State agencies.

14. Any provision that precludes recording a memorandum of lease.

15. Any provision that requires the Commonwealth to agree to execute or abide by any future document. Examples are subordination agreements that may be required by the lender, or modifications to the building’s rules and regulations. We can accept such provisions only if our agreement is subject to the approval of the document by the Attorney General’s office at the time such document is made available. No limitations should be placed on the review or approval by the Attorney General’s office.

These issues are non-negotiable (except as noted), and any contrary provisions in a lease, contract or agreement are unenforceable against the Commonwealth or its agencies.

EXHIBIT B - Property Data Sheet

Building or Project Name:

Street Address:

City and Zip Code:

City / County of

Approximate total square footage of building:

Rentable SF of proposed space:

Usable SF of proposed space:

Pertinent description of the proposed premises to be leased to Tenant (floor #, suite # etc.):

Does current Zoning permit this type of use?

Year of Original Construction:

Year of Last Major Improvement:

Describe age/construction of the roof:

Describe age/construction of the HVAC system:

Is this a sublease or unit in a condominium?

Property Owner Information: Provide the legal name of the entity holding title to the property proposed (this is the landlord’s information that transfers to the lease document):

Owner:

Mailing address:

Phone:

FAX #:

Email address:

The following documents are required as part of the submission of the RFP. Please indicate that they are included as part of this RFP submission.

A copy of the existing floor plan or floor plate is included with this proposal.

Current tax assessment of building/land

CAD drawings or CAD drawings available

Copy of deed, operating agreement, corporate resolution and/or other documentation as evidence of the landlord’s authority to execute a lease for this property.

A marketing flyer for the proposed property

EXHIBIT C – Letter of Representation


EXHIBIT D – Programmatic Space Needs


EXHIBIT E

DOC DESIGN AND TENANT IMPROVEMENT GUIDELINES

This listing is intended to be a comprehensive description of the required minimum acceptable level of (i) the condition of, and (ii) the work, material and finishes for, the demised premises leased for occupancy by the Commonwealth of Virginia, Department of Corrections and the areas used in common by tenants; provided, however, that the requirements may vary from site to site and specific requirements will be defined in the course of preparing the lease and construction documents.

GENERAL REQUIREMENTS:

1. The Landlord shall be, or shall appoint a designee to be, the single point of responsibility for the design and construction of the work.

2. No change in the scope of work, materials, finishes, etc. shall be approved by anyone other than the Tenant (DGS). Any modifications or deviations not approved by the Tenant may be rejected at Tenant’s sole discretion.

3. All construction work and the entire facility, both interior and exterior areas, shall comply with applicable ADA codes and regulations for access and ability to work in a barrier free space, irrespective of any grandfathering of the existing conditions. Accessible facilities include parking, building entrance, elevators, toilets, and other ancillary spaces as well as Tenant’s demised premises.

4. All construction shall meet the current edition of the Virginia Uniform Statewide Building Code (“VUSBC”) and all other applicable laws.

5. All work and building materials shall be new and listed and labeled by a recognized testing company, wherever standards have been established.

6. The building is to be free of friable asbestos or friable asbestos must be properly abated prior to occupancy. A certification of the absence of asbestos containing materials (“ACMs”) or its abatement may be required. ACMs must be managed under an appropriate management plan.

7. The demised premises and common areas are to be mold free. A certification of the absence of mold may be required.

8. Low VOC adhesives, paint, carpet and other materials shall be used pursuant to the VUSBC.

...

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