Seattle-based zulily, inc., which raised about $140 million through an IPO in the fourth quarter, has entered into a lease agreement for a new fulfillment center in Nevada.
The 12-year lease between the company and US Real Estate LP is for approximately 48 acres of land, including a warehouse/distribution building containing approximately 707,010 square feet of ground floor space. The building will be constructed by the landlord. The property is located in McCarran, Nevada.
The initial term of the lease is estimated to commence on the earlier of completion of the warehouse/distribution building or the date the company commences business operations from the leased property. zulily, inc. will be obligated to pay approximately $1.3 million in annual base rent in the first year, which shall increase by 1.75% each year. zulily, inc. will also be obligated to pay operating expenses, including property management fees, and to deliver a letter of credit in the amount of $3 million.
The lease allows the company to give at least six months notice prior to the expiration of the then-current term to extend the lease for three additional five-year terms, with certain increases in base rent.