Posting Language
Title
Authorize negotiation and execution of a lease amendment with Fifth Lane Capital, LP, a Delaware limited partnership, for 1,024 square feet of office space in the University Park Building located at 3300 North Interstate 35, Suite 380, Austin, Texas 78705, for a 15-month lease extension. Funding: $50,064 in projected revenue for the Operating Budget of the Building Services Department.
De
Lead Department
Financial Services Department.
Fiscal Note
Estimated projected revenue of $50,064 for the Fiscal Year 2025-2026 Operating Budget of the Building Services Department.
Prior Council Action:
May 7, 2025 – Council approved a lease with Fifth Lane Capital, LP, a Delaware limited partnership for the University Park Building located at 3300 North Interstate 35.
For More Information:
Michael Gates, Financial Services Department, 512-974-5639; Kimberly Olivares, Financial Services Department, 512-974-2924, Brandon Williamson, Financial Services Department, 512-974-5666;.
Additional Backup Information:
This amendment is to the lease agreement with Fifth Lane Capital, LP, for Suite 380, consisting of approximately 1,024 rentable square feet of office space, in the recently acquired building located at 3300 North Interstate 35, Austin, Texas 78705. The amendment is in the best interest of the City as it provides additional revenue during the planning phase of building renovations for future use allowing for a 15-month lease extension from October 1, 2025, and expires on December 31, 2026. Under the lease extension, Fifth Lane Capital, LP will continue to be responsible for the rent and other charges for any occupancy of the space until December 31, 2026. This lease extension has been carefully considered and will not delay renovations to the building.
The proposed base rent for the office space is $29.50 per square foot and includes a 3.5% increase from the current rate paid in August 2025. The operating expenses are currently estimated at $1,655 per month. The following table summarizes the rent and operating expenses:
|
Term
(October 1, 2025 – December 31, 2026) |
Monthly Base Rent |
Monthly Operating Expenses |
Total Monthly Rent |
Total Rent |
|
Amendment No. 1 |
$2,517 |
$1,655 |
$4,172 |
$62,580 |
|
TOTAL: |
$62,580 |
An independent third-party appraisal was procured to establish the fair market rental rate. The appraisal supports the proposed lease terms.
The Strategic Facilities Governance Team has reviewed and approved the proposed lease agreement.