Millennial Media Lease Extension, Future at Can Company Outlined

Can Company

The Can Company

On December 28, 2012, Millennial Media, Inc. entered into an agreement with Can Company, LLC to extend the term of its existing lease at the Can Company in Baltimore from September 30th, 2013 up through and including March 31st, 2015.

Millennial Media’s leases and subleases at The Can Company were all previously set to expire on September 30th, 2013.

From October 2013 to October 2014, Millennial Media’s rent per square foot at the building will be $23.20. The following year will be $23.90.

According to the lease agreement, for the balance of the lease, Can Company LLC will endeavor to make space available within the property by relocating tenants currently situated adjacent to Millennial Media’s leased premises on the 4th floor of the building as well as in other areas of the property.

For instance, the spaces on the 4th Floor being contemplated for Millennial Media’s short and long-term expansion consist of the following:

  • Benexx: 1,542 RSF
  • M3 Financial: 1,197 RSF
  • RPI: 1,640 RSF

If Millennial Media expands into these spaces, Millennial Media will occupy the entire 4th floor of the building.

In addition to these spaces, the following spaces are also being contemplated for Millennial Media’s short (and long) term expansion:

  • Prudential PenFed Realty: 1,220 RSF
  • Marriage Equality: 3,620 RSF
  • Field House: 6,524 RSF

When Millennial Media notifies Can Company LLC that it wants any of these spaces, Can Company LLC will “endeavor to make the spaces available.” To assist Can Company LLC in this endeavor, Millennial Media is expected to provide an estimated time schedule of its anticipated expansion needs.

Can Company LLC will not lease any of these spaces to parties other than Millennial Media during its lease term without first offering Millennial Media the right of first refusal. Millennial Media is paying an option fee to Can Company LLC of $5,000 per month and is responsible for the direct costs (i.e., cleaning and utilities) of operating the premises previously occupied by Field House, which is approximately 6,524 square feet.

Millennial Media will be responsible for all costs necessary to improve leased spaces, including design fees and costs of relocation of existing tenants that are relocated within The Can Company property.

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Kelly Ennis of The Verve Partnership

Millennial Media is obligated to reimburse Cross Street Partners, LLC, an agent of Landlord, for fifty percent of the cost of a conceptual planning and design study to be completed by The Verve Partnership in collaboration with Marks-Thomas Architects.  

The purpose of this study is to develop design alternatives and an expansion plan to enable Millennial Media’s long-term occupancy of the Property.

As quoted in a proposal provided by TVP to Cross Street Partners, LLC on October 16, 2012, the cost of the design study is $29,000. Cross Street Partners is  not allowed to agree on an increase in the cost of the design study without the prior consent of Tenant.

Finally, The Can Company agreed to accommodate Millennial Media’s parking needs, including those necessitated by any expansion.

Millennial Media agreed to use its “reasonable efforts” to cooperate on Can Company’s intent to adjust its current parking operation to comply with the City of Baltimore’s “green” parking policy, which includes the implementation of unreserved and fee paid parking. However, Millennial Media’s right to utilize its current number of 42 spaces pursuant to its Lease, including its sublease, shall remain unchanged.

As part of this lease amendment, the lease renewal term for Millennial Media will be ten years as opposed to its five-year renewal term in its Lease. The renewal term has been adjusted so it commences upon termination of the new 18-month term that expires in 2015.

The Renewal Term option must be exercised 270 days prior to expiration of the new 18-month term, and the rent during the Renewal Term option will be structured on the basis of market terms.