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Lease Terms for Align Technology's HQ in San Jose
Align Technology has signed a lease with commercial real estate firm Carr NP Properties LLC to take 129,024 SF in San Jose, CA for the company's new headquarters. The lease payments are in the picture to the right. The deal also includes $2.58 million for tenant improvements. Following is the text from the company's filing with the SEC on Friday morning:
ITEM 1.01 Entry into a Material Definitive Agreement
On January 26, 2010, Align Technology, Inc., a Delaware corporation (the “Company”), entered into a Lease Agreement (the “Lease Agreement”) with Carr NP Properties, L.L.C. (“Landlord”) to lease approximately 129,024 square feet of rentable space, located at 2560 and 2570 Orchard Parkway, San Jose, California, as the new headquarters offices of the Company (the “Premises”). The Lease Agreement commences on the earlier to occur of August 1, 2010 or the date the Company first commences to conduct business in the premises, which is expected to be on or about June 28, 2010 and will continue for an initial term of seven years and two months. The Company’s current lease agreement for its headquarters offices at 821, 831 and 881 Martin Avenue, Santa Clara, will expire on June 30, 2010.
At the end of the initial term of the lease, the Company has two options to extend the term of the lease for successive periods of five years each at the then-prevailing market rental rate.
In addition to monthly rent, the Company will be responsible for its share of operating expenses equal to the sum of expenses directly attributable to the Premises (including the Tenant’s share of taxes and a management fee), plus a proportionate share of expenses attributable to the real estate project of which the Premises are a part.
Landlord is obligated to provide a tenant improvement allowance in the amount of Two Million Five Hundred Eighty Thousand Four Hundred Eighty Dollars ($2,580,480.00), and the Company is responsible for any Tenant Improvement costs in excess of Landlord’s allowance. The Company and Landlord have made customary representations, warranties and covenants in the Lease Agreement. The above description of the Lease Agreement is qualified in its entirety by reference to the full text of the Lease Agreement, a copy of which is filed as Exhibit 10.1 to this Report on Form 8-K.
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