Fund nixes tapping real estate agents to find building tenants

The board of trustees of the NMI Retirement Fund disapproved Thursday the hiring of real estate agents to look for new tenants for its vacant office space on Capital Hill.

Adelina Roberto, the board’s second vice chair, said the idea of hiring real estate agents is too risky for the agency due to the absence of a real estate law in the Commonwealth.

Fund administrator Richard Villagomez had pushed for a non-exclusive agreement with realtors who could bring in tenants for the NMI Retirement Building. Once a realtor finds a legitimate tenant and a new lease contract is executed, the Fund will compensate the agent equivalent to one month’s rental.

The Fund has yet to find proposers or anyone interested in leasing the second and third floors of its building since the Public School System central office made the decision to move out.

According to Roberto, they have to consider some situations that may lead to significant losses for the Fund such as if the new tenant moves out soon after the real estate agent is paid for his services.

“The problem here is we don’t have a real estate law on this island that will protect us in the long run,” she told the board.

She recommended that the proposal be junked and to just continue announcing the vacant spaces. The board unanimously voted to reject the non-exclusive contract with realtors.

PSS moved out of the Fund building just this week.

Fund board chair Sixto Igisomar pointed out that, contrary to what many believe, PSS was never kicked out. He instructed the administrator to issue a public statement clarifying the facts about PSS leaving the premises.

Igisomar said people have been approaching him and telling him that “we kicked PSS out,” which he said was untrue, adding that some students were also fed the same misinformation.

The PSS lease agreement expired on April 30 this year. Education Commissioner Rita Sablan was negotiating a new lease at a lower lease—which the Fund board agreed to—but she balked at the conditions being required by the Fund.

Fund officials said they only learned about PSS’ decision to reject their conditions upon seeing a request for proposal announcing that PSS was looking for new vacant spaces for its central offices. The Fund submitted a proposal, with the same conditions, to the PSS RFP.

“PSS asked for a discount, the board agreed…but we later found out that they decided to move out all along,” said Villagomez.

PSS, which used to occupy the second and third floors of the Fund building, has transferred its offices to a 15-classroom building at Marianas High School.