Relypsa, Inc. has signed a new lease with HCP LS Redwood City, LLC for 79,675 square feet of office and laboratory space at 100 Cardinal Way in Redwood City, CA. The new space will serve as Relypsa’s principal executive offices.
Relypsa, a clinical-stage biopharmaceutical company focused on the development and commercialization of nonabsorbed polymeric drugs to treat disorders in the areas of renal, cardiovascular and metabolic diseases, currently leases office and laboratory space at 700 Saginaw Drive in Redwood City, CA under an existing lease from September 7, 2012.
The lease has an annual base rent of approximately $2.4 million in the first year, calculated as if the premises contained only 60,000 square feet. The Lease provides for annual base rent of approximately $3.3 million in the second year, with a 3 percent increase in annual base rent in each subsequent year.
The lease is intended to be a “triple net” meaning the Company will pay, or reimburse the landlord for all costs and operating expenses, including taxes, insurance and maintenance expenses, including the land, the building and the common areas.
The Company will be entitled to a one-time improvement allowance of approximately $0.6 million for costs related to relocation, data/cabling, furniture, fixtures and equipment. The Company will also be entitled, at its election, to an additional allowance of approximately $2.2 million for certain costs, approximately $1.0 million of which may be related to relocation, data/cabling, furniture, fixtures and equipment, and approximately $1.2 million of which may be related to future improvements to the premises from time to time prior to the second anniversary of the lease commencement date.
The lease commences February 1, 2015 or on the date the space is ready for occupancy following the landlord’s construction of certain improvements. The lease terminates 10 years after the its commencement, and Relypsa has an option to extend the lease term for an additional five years.