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PROPOSED LEASE AGREEMENT
 
Department:  Department of Real Estate Management 
 
Request:  Approval of a (New) Lease Agreement 
 
Landlord:  CHDG Phase 1A1 Sublessee, LLC
 
Tenant:  County of Cook
 
Location:  1835 W. Harrison Street, 60612
 
Term/Extension Period:  Ten (10) years subject to completion of tenant improvements.  
(Estimated to be 8/1/2019)
 
Space Occupied:  71,055 square feet
 
Monthly Rent:  
Year                     Rent PSF                     Monthly                     Annual
1                     $22.00                     $130,267.50                     $1,563,210.00
2                     $22.55                     $133,524.19                     $1,602,290.25
3                     $23.11                     $136,840.09                     $1,642,081.05
4                     $23.69                     $140,274.41                     $1,683,292.95
5                     $24.28                     $143,767.95                     $1,725,215.40
6                     $24.89                     $147,379.91                     $1,768,558.95
7                     $25.51                     $151,051.09                     $1,812,613.05
8                     $26.15                     $154,840.69                     $1,858,088.25
9                     $26.80                     $158,689.50                     $1,904,274.00
10                     $27.47                     $162,656.74                     $1,951,880.85
 
Rent Reserve: Tenant shall deposit and maintain with Landlord a reserve in the amount equal to one monthly installment of Base Rent plus one monthly installment of Adjustment Rent.
 
Fiscal Impact:  Approval of this item would commit Fiscal 2019-2029 funds  
 
Accounts:  890 and 896-690/550130 Rental of Facilities
 
Option to Renew: Tenant shall have three (3), ten (10) year options to renew with not less than 12 months and not more than 30 months prior to the end of the then-current term.
 
Termination:  NA  
 
Utilities Included:  No (In addition to Base Rent, Tenant shall be responsible for its proportionate share of real estate taxes estimated at $1.31 psf and an expected initial operating expense of more than $4.40 psf)   
 
Summary/Notes: CCHHS will utilize the premises for physical therapy, durable medical equipment (DME) as well as office space for Integrated Care Management and Health Information Systems offices.
 
This Lease Agreement is being submitted simultaneously for approval by Health & Hospitals System board at their next available meeting.
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