REPORT/RECOMMENDATION TO THE BOARD OF SUPERVISORS
OF SAN BERNARDINO COUNTY
AND RECORD OF ACTION
August 18, 2026
FROM
TERRY W. THOMPSON, Director, Real Estate Services Department
JOSH DUGAS, Acting Director, Department of Behavioral Health
SUBJECT
Title
Amendment to Lease Agreement to Acknowledge the Transfer of Ownership for Office Space in San Bernardino
End
RECOMMENDATION(S)
Recommendation
1. Find that approval of Amendment No. 5 to Lease Agreement No. 13-702 with Vanderbilt Partners, LLC for office space, is an exempt project under the California Environmental Quality Act Guidelines, Section 15301 - Existing Facilities (Class 1).
2. Approve Amendment No. 5 to Lease Agreement No. 13-702, to acknowledge and reflect the transfer of ownership of the Premises from Vanderbilt Partners, LLC, to Robhana Investments, LLC, ICO SB County Realto, LLC, and SoCal SB Partners, LLC, as successor-in-interest, for approximately 70,000 square feet of office space located at 303 East Vanderbilt Way in San Bernardino (Assessor’s Parcel Number 0281-372-02-0000) for the Department of Behavioral Health.
3. Authorize the Director of the Real Estate Services Department to execute future amendments to Lease Agreement No. 13-702 solely for the purpose of acknowledging a change in ownership of approximately 70,000 square feet of office space located at 303 East Vanderbilt Way in San Bernardino (Assessor’s Parcel Number 0281-372-02-0000), provided such amendments do not materially modify the terms, conditions, rental obligations, term, or rights of the parties under the Lease.
4. Direct the Real Estate Services Department to file the Notice of Exemption in accordance with the California Environmental Quality Act.
(Presenter: Terry W. Thompson, Director, 387-5000)
Body
COUNTY AND CHIEF EXECUTIVE OFFICER GOALS & OBJECTIVES
Operate in a Fiscally-Responsible and Business-Like Manner.
FINANCIAL IMPACT
Approval of this item will not result in the use of Discretionary General Funding (Net County Cost). There is no cost associated with Amendment No. 5 (Amendment) to Lease Agreement No. 13-702 (Lease) to acknowledge the transfer of property ownership effective May 27, 2026. The Lease payments will continue to be made from the Real Estate Services Department (RESD) Rents budget (7810001000) and reimbursed by the Department of Behavioral Health’s (DBH) budget (9200002200), which is funded by Medi-Cal, Medicare, Behavioral Health Services Act, and existing ongoing 1991 and 2011 Realignment funds. The prior and successor ownership entities have internally reconciled rent payments from May 2026 and June 2026; therefore, no recovery or reimbursement of funds by the County is required. Lease payments to the successor ownership entity commenced on July 1, 2026.
BACKGROUND INFORMATION
On August 20, 2013 (Item No. 56), the County Board of Supervisors (Board) approved the Lease with two five-year options to extend for 45,000 square feet of office space for the Department of Behavioral Health (DBH) at 303 East Vanderbilt Way in San Bernardino, Assessor’s Parcel Number 0281-372-02-0000 (Premises), subject to the successful sale and execution of a lease by the successful bidder for the Vanderbilt Building. F&R County Building, LLC was the successful bidder at an auction held on October 3, 2013, and subsequently executed the Lease on October 15, 2013. The original term of the Lease was from May 1, 2014 through April 30, 2024. Since the inception of the Lease, the Board has approved four amendments to reflect a change of ownership from F&R County Building, LLC to Vanderbilt Partners, LLC; an increase to the leased area to 70,000 square feet; changes to the commencement and expiration dates, and the rent schedule; tenant improvements to the Premises; the addition of an option to purchase and a subsequent extension of that option; an extension of the Lease term through January 31, 2035; updates to the rent schedule and termination provisions, and updated standard lease agreement language. The following DBH programs are located in the office space: Administrative and Fiscal Services, Program Support Services, Community Engagement and Equity Services.
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Amendment No. |
Approval Date |
Item No. |
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1 |
March 11, 2014 |
30 |
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2 |
October 7, 2014 |
37 |
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3 |
January 28, 2025 |
54 |
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4 |
December 16, 2025 |
94 |
On May 27, 2026, title to the Premises was transferred from Vanderbilt Partners, LLC, to Robhana Investments, LLC, ICO SB County Realto, LLC, and SoCal SB Partners, LLC (Owners). The transfer was not the result of a sale of the Premises, but rather a transfer to separate business entities under the same ownership as part of a tenancy-in-common ownership structure. Accordingly, the transfer does not constitute a waiver of the County's Option to Purchase, which remains in full force and effect pursuant to the terms of the Lease.
The recommended action will approve the Amendment to formally acknowledge the transfer of ownership, recognize the Owners as the successor-in-interest to the Lease, update the ownership entity and payee information, and authorize future rent payments to the successor ownership using the updated banking information, and authorize the Director of the Real Estate Services Department to execute future amendments solely for the purpose of acknowledging ownership changes. This delegated authority will allow the County to efficiently update ownership and payee information when ownership changes occur during the term of the Lease without requiring additional Board action, provided such amendments do not materially modify the terms, conditions, rental obligations, term, or rights of the parties under the Lease. The prior and successor ownership entities have internally reconciled rent payments made during the transition period; therefore, no recovery or reimbursement of funds by the County is required. All other terms and conditions of the Lease will remain unchanged.
The project to approve the Amendment was reviewed pursuant to the California Environmental Quality Act (CEQA) and determined to be categorically exempt under Section 15301 - Class 1 Existing Facilities because the proposed Lease is to secure property to operate within the existing structure with negligible or no expansion of existing use.
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Summary of Lease Terms |
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Lessor: |
Robhana Investments, LLC, ICO SB County Realto, LLC, and SoCal SB Partners, LLC Jian Torkan, Manager |
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Location: |
303 East Vanderbilt Way, San Bernardino |
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Size: |
Approximately 70,000 square feet of office space |
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Second Extended Term: |
Five years, February 1, 2030 through January 31, 2035 |
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Options: |
Two five-year options |
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Annual Increases: |
Approximately 3% annually beginning February 1, 2031 |
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Holdover: |
With the Landlord's written consent, under the same terms and conditions, including rent. |
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Improvement Costs: |
None |
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Custodial: |
Provided by Lessor |
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Maintenance: |
Provided by Lessor |
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Utilities: |
Provided by Lessor, subject to an electrical utility expense cap of $0.22 per square foot, increased annually by 2% |
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Insurance: |
The Certificate of Liability Insurance, as required by the Lease, is on file with the Real Estate Services Department |
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Right to Terminate: |
County may terminate for convenience on or after February 1, 2035, with 90 days’ notice |
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Option to Purchase: |
County may purchase property between February 1, 2029 and January 31, 2030, at fair market value |
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Parking: |
Sufficient for County needs |
PROCUREMENT
Not applicable.
REVIEW BY OTHERS
This item has been reviewed by County Counsel (John Tubbs II, Deputy County Counsel, 387-5455) on August 13, 2026; Behavioral Health (Lydia Bell, Administrative Manager, 658-1053) on July 9, 2026; Purchasing (Ariel Gill, Supervising Buyer, 387-2070) on July 7, 2026; and County Finance and Administration (Iliana Rodriguez, 386-8392, and Eduardo Mora, 387-4375, Administrative Analysts) on August 3, 2026.
(AH: 840-266-8977)